Education Funding (South Liverpool)

Debate between Dan Carden and Nick Gibb

Tuesday 10th October 2017 Westminster Hall

[Nick Gibb]

I will not give way because there is a very short amount of time left, but I will come to the hon. Lady’s comments shortly.

It cannot be right that local authorities with similar needs and characteristics receive very different levels of funding from central Government. Across the country, schools teaching children with the same needs get markedly different amounts of money for no good reason. At the heart of the problem is the fact that the data used to allocate funding to local authorities are over a decade out of date, leading to manifest unfairness in how funding is distributed. This year, Nottingham, for example, will receive £555 more per pupil than Halton, despite having equal proportions of pupils eligible for free school meals.

Funding for each area has been determined by simply rolling forward the previous year’s allocation, adjusting only for changes in the total number of pupils in each area and ignoring everything else. The proportion of secondary pupils eligible for free school meals in London, for example, fell from 22.4% in 2007 to 17% in 2017, compared with a decline nationally from 13.1% to 12.9%, but the funding system has paid no attention to that significant shift. That is not a rational, fair or efficient system for distributing money to our schools.

That is why the Government are reforming the existing system with the introduction of a national funding formula for schools and high needs. Informed by the consultation that we undertook, with 26,000 responses, we will introduce a national funding formula from April 2018, ending the current unfair postcode lottery system. For the first time, the funding system will deliver resources on a consistent and transparent basis, right across the country, reflecting local needs.

Last month, we published full details of both the school and high-needs national funding formulae and the impact they will have for every local authority. We have also published notional school-level allocations showing what each school would attract through the formula. It means that everyone can see what the national funding formula will mean for them and understand why. It is notional because we are taking the national funding formula as though it had been fully implemented in this financial year, 2017 to 2018, so that people and schools can see what the effects of that formula would be on their schools with those particular pupils this year. It is a very effective way of describing what will happen under the formula. The actual funding will depend on the actual pupils at that school next year, and we will make announcements nearer the time in the usual way.

To provide stability for schools through the transition to the national funding formula, for the next two years local authorities will continue to set their own local formulae in consultation with local schools and the schools forum. That element of flexibility will allow them to respond to changes as they come through and take account of local issues.

As well as a fairer distribution of funding, the total quantum available is also important. We want schools to have the resources they need to deliver a world-class education for their pupils. We understand that, just like other public services, schools are facing cost pressures. In recognition of those facts, the Secretary of State announced in July an additional £1.3 billion for schools and high needs across 2018-19 and 2019-20, in addition to the funding confirmed at the 2015 spending review.

The additional funding will be distributed across the next two years as we implement the national funding formula. Core funding for schools and high needs will rise from nearly £41 billion this financial year—itself a record high in school funding—to £42.4 billion in 2018-19 and to £43.5 billion in 2019-20. Overall, that means that the total schools budget will increase by over 6% between this year and 2019-20. That will mean that funding per pupil for schools and high needs will now be maintained in real terms for the remaining two years of the spending review.

The additional funding that we have announced means that we can provide a cash increase in respect of every school and every local authority area from April 2018. In the hon. Member for Garston and Halewood’s constituency, once the new formula is implemented in full, there will be an extra £1.3 million for block funding—an increase of 2.4%. Belle Vale Community Primary School will not face a cut in funding; it will have a 3% increase. Enterprise South Liverpool Academy will not face a cut in spending; it will have a 5.2% increase of £179,000. Gateacre School will not face a cut; it will have a 3.5% increase. Halewood Academy will not face a cut; it will have an 8.2% increase. Middlefield Community Primary School will have a 1.2% increase. St Francis Xavier’s College will have a 1% increase and Yew Tree Community Primary School will have a 5% increase in funding. None of the schools that I have not mentioned in the hon. Lady’s constituency will lose money; they will all gain about 1% or more.

The hon. Member for Liverpool, Walton (Dan Carden) said that there will be cuts of £390 per pupil. In fact, in his constituency there will be a £1.1 million increase in funding, equal to 1.6%.

[Dan Carden]

Will the Minister give way?

[Nick Gibb]

I will not give way, because we are very short of time now. As I said, across the hon. Member for Garston and Halewood’s constituency there will be a £3 million increase in funding. The hon. Member for Liverpool, West Derby (Stephen Twigg) talked about cuts to funding in his schools. Croxteth Community Primary School will gain a 0.9% increase; Monksdown Primary, a 0.9% increase; St Edward’s College, a 1% increase; and St John Bosco Arts College—I enjoyed visiting that school—a 0.9% increase.

I can confirm that deprivation, mobility and low prior attainment are very significant factors in the funding formula. That is something that the Secretary of State was determined to have in the formula that we consulted on. Funding will increase by £0.6 million in schools in the constituency of the hon. Member for Liverpool, Riverside (Mrs Ellman)—some 1.2% according to the national funding formula.

The extra £1.3 billion that we are investing means we will be able to go over and above our manifesto commitment that no school should lose funding as a result of the introduction of the national funding formula. Now, every school will attract at least 0.5% more per pupil in 2018-19 and 1% more in 2019-20. That change will have a particularly positive impact in Garston and Halewood: 23 of the 32 schools will gain through the formula as a result of the decision to raise the funding floor. I trust that the hon. Member for Garston and Halewood will welcome those changes when she has a chance to consider them more reflectively.

Following the strong representations that we received during the consultation, the formula will also provide all secondary schools with minimum per-pupil funding of £4,800 in 2019-20 and all primary schools with £3,500. In 2018-19, as a step towards those minimum funding levels, secondary schools will attract at least £4,600 and primary schools will attract £3,300. That new minimum level will recognise the challenges of the very lowest funded schools, including 14 schools across Liverpool. The changes delivered by the national funding formula will mean both Liverpool and Knowsley will be among the 10 highest-funded local authorities per pupil outside London.

We are particularly focused on supporting children who face the greatest barriers to success. That is why we are also committed to reforming the funding for children and young people with high and special needs. We are finally moving towards a more rational basis for distributing funding for children and young people with high needs, taking into account an up-to-date assessment of the level of need in each area.

The additional investment we are putting in means that every local authority will see a minimum increase in high needs funding of 0.5% in 2018-19 and 1% in 2019-20, but for south Liverpool, a fair allocation of resources means an even more significant increase in funding. Once our formula is implemented in full, Liverpool will see an increase of 17.1%, compared with their planned high needs spending in 2017-18, with Knowsley gaining 4.5%.

Moving towards this full formula allocation, local authorities will receive up to 3% per head gains a year for the next two years. As important as the fair allocation of funding is how that funding is used in practice. We are committed to helping schools improve outcomes for pupils and to promote social mobility by ensuring that they get the best value from all their resources.

In conclusion, I thank the hon. Member for Garston and Halewood and other Members from the Liverpool area for taking part in this important debate. The Government will continue to support England’s schools by providing more funding than ever before, by making sure that that funding is distributed fairly and to where it is needed most and by helping schools to achieve more with that funding. That will help schools to sustain and improve the rapid progress our children and young people are making under this Government.

Introducing fair funding is an historic and necessary reform—one that previous Governments have avoided for too long. Thanks to the commitment of this Government to addressing issues of unfairness in our society, for the first time we have a clear and transparent system that matches funding to children’s needs and the needs of the schools that they attend. It will help all schools to deliver the high-quality education that their pupils deserve and it will ensure that all pupils are able to fulfil their potential.

Question put and agreed to.

Resolved,

That this House has considered education funding in south Liverpool.