National Funding Formula: Social Mobility

Debate between Emma Lewell-Buck and Layla Moran

Tuesday 22nd May 2018 Westminster Hall

[Mrs Lewell-Buck]

I agree. I have had representations from headteachers, staff and support assistants in my constituency as well. That problem faces schools throughout our country—they are put in an intolerable position because their funding has been cut and cut.

The Education Secretary and the Chancellor of the Exchequer have both said that every school in the country will receive a cash-terms increase to their funding. We know, however, that that is simply not the case, as do the independent Institute for Fiscal Studies and the UK Statistics Authority, which has repeatedly told the Government that that claim is not accurate. Perhaps the Minister will get it right this time. I am sure that by now his Department has received the local funding formula for every local authority in the country. Can he tell us how many schools will face a real-terms cut to their budgets, and is he able to tell us where those schools are?

The Minister has told us of the local authorities that have written to his Department to seek permission to top-slice their budgets to fund additional high-needs support. How many schools across the country will see their block funding cut as a result of those decisions? Such cuts should not be necessary. Schools and councils should never be forced to choose between funding the day-to-day expenses of their schools and getting the high-needs funding that is vital to so many of their pupils’ needs.

[Layla Moran]

I am grateful to the hon. Lady for giving way and for raising the issue of special educational needs provision. The education, health and care plan system is not working in places such as Oxfordshire because the county does not have the resources to deliver it. Although the schools are able to come up with the plans, they and the county do not have the money. Is this a picture that she has seen, because it is inundating my inbox?

[Mrs Lewell-Buck]

I thank the hon. Lady for that intervention. A recent local ombudsman report said that the picture of ECHP plans across the country is dire, and local authorities are often spending more money on tribunals to rectify decisions they made in the face of cuts, rather than actually implementing the plans in the way they should be implemented in the first place.

The fact is that school budgets have been slashed for the first time in a generation. The National Audit Office found that, since 2015, £2.7 billion has been lost from school budgets in real terms. If the Government were not making cuts to school budgets, it would be possible to introduce a new funding formula in a way that was equitable and sustainable and that could actually improve social mobility, but the Government are failing to do that. When the revised funding formula was put forward after the snap general election, one of the major changes was the introduction of a minimum funding level per pupil in secondary schools. Given the way that the formula allocates funding and the extent to which it allocates more funding to disadvantaged pupils, a minimum funding level would be particularly helpful to schools that take a very small number of pupils from disadvantaged backgrounds—in other words, grammar schools.

When the £4,600 minimum per secondary school pupil was announced, the Government committed an extra £1.3 billion to schools over two years. How much of that additional funding will find its way to grammar schools? It seems to us in the Labour party that finding extra funding to go to grammar schools—most of them in areas represented by the Minister’s colleagues on the Conservative Back Benches—is not a policy that will increase social mobility. In fact, it will do the opposite and focus resources more and more on the pupils who need it least, while those who need the additional support and additional funding will simply not have access to it.

We do not object to the principle of a minimum level of funding per pupil. However, it is worth remembering how the Conservative party arrived at that policy. When the funding formula was first devised, the Government did not believe that there should be a minimum funding level. Only after their Back Benchers—particularly those representing schools with more affluent intakes—raised concerns that they did not see enough extra funding in the formula did the Minister come to believe in the policy.

Although we welcome the belief in the minimum amount to which every single pupil should be entitled, I wish the Government would do this properly. Instead of finding a fraction of the funding that our schools need by making cuts elsewhere in an effort to buy off their own Back Benchers, why did the Minister not push to end the cuts to school budgets and increase per pupil funding in real terms for every single child, not just a minority of children?

Despite there being some elements of the funding formula that we welcome, the funding that goes to the most disadvantaged pupils is being cut in real terms year after year. Despite the rhetoric from the Government, the pupil premium has been falling in real terms every year since 2015. They have failed to increase the funding in line with inflation, which has led to the funding falling in real terms. In fact, it has fallen by £140 million.

A recent article in the press noted:

“A Department for Education source confirmed that in real terms the amount per pupil spent on the pupil premium specifically has fallen.”

Will the Minister confirm today that the per pupil spending on the pupil premium has fallen in real terms? Will he also tell us why, in reducing the funding formula, the Government have not ensured that that vital funding is protected?