Dedicated Schools Grant

Gideon Amos Excerpts

Tuesday 6th May 2025 Westminster Hall

[Gideon Amos (Taunton and Wellington) (LD)]

It is a pleasure to serve with you in the Chair, Ms Butler. I congratulate my hon. Friend the Member for Tewkesbury (Cameron Thomas) on bringing us all together for this important debate to highlight the inequity of the system that built up under the previous Conservative Government and became more and more entrenched over those years. I am only sorry that more Conservative Members did not come to pay attention to this issue today. It is a huge factor in the wellbeing of children in all our constituencies, up and down the country.

As my hon. Friend the Member for Glastonbury and Somerton (Sarah Dyke) has pointed out, Somerset is one of the f40 local authorities and therefore one of the worst funded local education authorities. A child educated here in Westminster receives £4,000 more funding as a pupil than a child in my Somerset constituency of Taunton and Wellington. At the same time, the demand for SEND in places like Somerset has risen enormously. There has been a 60% increase in placements between 2014-15 and 2023-24 and, as a result, provision in Somerset, as in a lot of other places, is frankly unacceptable. It is not good enough and it needs to change.

Historical special educational needs funding, and the pattern for the national funding formula, is part of the problem. Spending should be based purely on current local need and not on historical need, as the Institute for Fiscal Studies has pointed out in an important report. It says:

“The use of historical spending patterns as a factor in the 2018 high-needs NFF also helped to cement geographical inequalities in high-needs funding that had arisen over time”.

It goes on:

“The historical spend element determines 25% of the overall formula allocation and drives a large element of the variation in funding across areas. This bakes in…arbitrary differences in council funding that have arisen over time, and lead to large variability in funding per high-needs pupil across councils”.

On the high needs block part of the direct schools grant, it says:

“The present high-needs funding system was introduced in 2018, when numbers were mostly stable, and it incorporates many historical measures of need and spending that already drive substantial geographical differences in spending per pupil. It is ill-designed for the present context of rising need”.

The f40 organisation has said:

“More than 20% of high needs funding is based on a local authority’s historical SEND spending, which bears no resemblance to today’s funding landscape”.

As the Institute for Fiscal Studies has pointed out, the system urgently needs reform.

Part of the problem is the problem of local government funding generally. In Somerset, £2 out of every £3 of council tax goes on care, whether that is adult social care or care for children, including special educational needs funding. It is no wonder that the outgoing Conservative leader of Somerset county council described that as a “time bomb” that “is ticking”. It is unfortunately likely to go off and affect children and families across Somerset, who are suffering the consequences of the legacy that our councillors are now trying to deal with. As my hon. Friend the Member for Harrogate and Knaresborough (Tom Gordon) pointed out, the withdrawal of the rural services delivery grant has compounded the problems and challenges for authorities such as Somerset, which have a low property base value across the county compared with property values in other part of the country and have historically low income levels as a result.

The national funding formula therefore has to be improved. The f40 organisation—I congratulate my hon. Friend the Member for Glastonbury and Somerton on her work with f40—has said:

“Government is aware of the unfairness and has indicated that it wishes to level up, but it is a very slow process and, at the current rate, will take around 20 years for equitable funding to be established. That is a whole generation of children. Children should have the same opportunities and resources, regardless of where they live or go to school”.

I am sure Members across the House agree with that and I urge the Minister to make good on that promise to reform the system.

Three things in particular need to be done. First, we need greater support within schools for special educational needs children. That will reduce costs later; we all know early intervention matters for younger children and has the most effect. Secondly, we need more hubs locally providing specialist provision and to not rely on the private, unregistered schools sector for much of our special educational needs provision. That is highly costly and not serving pupils’ best interests because it means transporting them long distances. Thirdly, we need more investment, which comes back to reform of the national funding formula. Liberal Democrats particularly want to see reform of local government funding and social care funding, but also above-inflation increases in school funding and a dedicated national SEND authority. That is the kind of reform we need to see in this Parliament and I hope very much the Government will deliver it.