Schools: National Funding Formula

Angela Rayner Excerpts

Thursday 14th September 2017 Commons Chamber

[Angela Rayner (Ashton-under-Lyne) (Lab)]

Once again on the last day before a recess we see the Secretary of State sneak out new policy. [Interruption.] I would hardly call that once in a national debate, but I wonder whether this statement has been put out today to try and hide and to distract from the fact that the Government are ripping up the rulebook on democracy, as they did yesterday in the debate on tuition fees. But of course, if this is a genuine change of heart, it is welcome. After all, the Secretary of State will be taking her policy directly from the pledges in the Labour party manifesto. Ever since she took office, we have been urging her to keep the promise her party made in 2015 to protect funding in real terms for every pupil.

Will the Secretary of State guarantee to the House that no school will be even a penny worse off in real terms—not cash terms—as a result of this funding formula? Will the proposal apply from this year or from 2015? The National Audit Office has found that schools have already lost nearly £2.7 billion since her party made that pledge. Members across the House have heard from schools that are already facing those cuts and that have had to beg parents to help them to find money and resources. Will she admit to the House that her announcement today does nothing to reverse those cuts and keep that promise?

The Secretary of State has said that her funding formula will increase per pupil funding by 0.5% a year until 2020, but the Education Policy Institute has found that in that period, inflationary pressures are over 2%, so will she admit that her funding formula will in fact mean a real-terms cut in school budgets? In today’s statement she says that the formula provides “a per pupil cash increase in respect of every school and every local area”, so will she admit that there will be pupils, schools and local authorities that see a real-terms cut in funding by 2020? She has referred to transitional protections offered to schools. How long will the transition period last? Will it include protections against losses during that transition, and for how long will those protections last?

The Secretary of State said that the basic amount allocated to each secondary school pupil will be “at least £4,800 per pupil”, but the Education and Skills Funding Agency guidance describes this an “optional” part of the funding formula. Will she guarantee that all secondary schools will now receive £4,800 per pupil? Can she tell us how much this increase in the basic per pupil funding rate will cost each year, and how she will fund it? Today’s announcement says that the minimum funding per primary school pupil will be £3,500. In December, the proposed basic per pupil funding in primary schools was £2,712, so again I ask: how much will the increase in basic per pupil funding cost, and how will it be funded?

None of the money announced so far is actually new money for education. Instead, the Secretary of State is simply cutting elsewhere to fill the black hole that the Government have created. Can she confirm that over £300 million of the supposedly new funding for schools has actually come from cutting the healthy pupils fund by over 75%? That money was meant to be ring-fenced for school sports, healthier meals, facilities for disabled pupils and mental health provision, and it is only days since the Prime Minister claimed that this would be her new priority. Only in February this year, the Secretary of State promised in a statement that the fund would not fall below £415 million. Will she now apologise for breaking yet another promise?

This leaves another £100 million that must come from her main capital budget. Where will that come from? She has said that she will “reprioritise” £250 million in 2018-19 and £350 million in 2019-20. Where will those cuts fall? She has also said that she will “redirect” £200 million from “central programmes that support schools on relatively narrow areas of their work”. Will she tell us what those programmes and those narrow areas are? Or is the truth that she simply made up that number, hoping that her civil servants can find more cuts?

The July announcement went no further than 2020. What happens then? I will be glad if the Secretary of State has listened to us, and to parents and teachers across the country, and looked again at the funding formula, but the fact is that this does not meet the promises that she has made. When will she return to this House with the funding that her party promised the electorate?

[Justine Greening]

I want to start by adding a massive thank you to the Department for Education officials who have worked on this for many years. It has been a complex piece of work, and it has been looked at under many Governments. I want to put on record my thanks to the team.

On the points raised by the hon. Member for Ashton-under-Lyne (Angela Rayner), I had hoped, given the cross-party recognition of the need for school funding reform, that there might be a warmer welcome for this announcement. It is not just schools represented by Government Members that will gain from it; many in Opposition Members’ constituencies have been equally underfunded. This is not a political issue; it is a question of ensuring that we fund children, wherever they are growing up in our country, in a consistent, transparent and fair fashion. That is what we are shifting towards today. This is not an uncomplicated thing, and we have worked really hard to make sure that schools that were already well funded will continue to remain well funded. However, this is also about making sure that schools that have traditionally been underfunded for a very long time can now start to catch up.

The hon. Lady asked a few questions. I think she misunderstood my point about ensuring that there is a minimum per pupil funding rate of £4,800 for secondary schools and £3,500 for primary schools. There are not many schools that are not at that minimum funding rate, but it is important for those that are below it that we address those issues through the consultation response. That is what we are doing today—[Interruption.] The hon. Lady asks what the guidance says. That guidance is for local authorities, as I have explained and as I hope she will understand. Local authorities currently set local formulae. We had already said, and I had hoped she might have recalled, that that will continue for 2018-19. When I came back to the House in July this year, I set out that that would also continue for 2019-20 because we believe that the right way to bring in a significant change in school funding is to work with local authorities. As part of the setting out of the final funding formula, we also set out a small but important element of flexibility for local authorities to respond to the changes as they come through and to nuance them to take account of local issues. That is where the optional element comes in. We are simply saying that it is right to give local authorities a modicum of flexibility to ensure that they can use the funding effectively on the ground.

We are being clear-cut about what the funding formula allocates to every single school in this country, and Members will be able to see those allocations. They will be able to sit down with their local authorities, and if they want the funding to go to those schools they will be able to ensure that it does. I expect that some local authorities will feel that the right thing to do is to get on with putting the funding formula in place at local level and that they will simply pass the money straight through to the schools. That is something that I would support, but it is important to have a small amount of flexibility while the formula comes in.

The hon. Lady asked about the fact that we are putting an extra £1.3 billion of additional funding into the core schools formula and budget. I felt it was important to do this. Over the past few years, we have challenged schools to try to find efficiencies, because we want to get the most out of every pound we put in. However, it is also important that I challenge the rest of my Department to do the same kind of exercise that we are asking schools and headteachers to do. I believe that doing that has enabled us to free up some additional resourcing that we can now push directly to headteachers in the frontline. Frankly, I am staggered that the hon. Lady thinks that that is a bad thing to do. Anyone in my role should be challenging their civil servants to try to work smarter and more efficiently to get money directly through to the frontline. That is yet another example of the hon. Lady doing nothing other rant and produce rhetoric, and there is not a lot of thought behind that rhetoric about what is the right thing to do.

With that, I will sit down. I look forward to the contributions from hon. Members.