Oral Answers to Questions

Debate between Justine Greening and Ranil Jayawardena

Monday 6th February 2017 Commons Chamber

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

5. What assessment she has made of the effect of the proposed national funding formula on schools in Hampshire.

[The Secretary of State for Education (Justine Greening)]

As we have been hearing, the Government want a fairer approach. It is clear that the Labour party supports the status quo of an unfair, un-transparent, outdated postcode-lottery approach to how schools funding is distributed. For Hampshire, this fairer alternative will mean extra money: £9 million of extra money every year for high-needs children in local Hampshire schools, in fact, and a further £4.5 million every year for Hampshire schools overall on top of that. My hon. Friend’s local schools in North East Hampshire will gain more than £1 million a year.

[Mr Jayawardena]

I thank the Secretary of State for those figures, which are most welcome—indeed, the county council leader said that to me the other day—but living costs are also high in Hampshire, especially in North East Hampshire. Will she consider tweaking the formula so that it includes a cost-neutral cost of living allowance, given that the average house price in my patch is £375,000, but house prices just over the border, where there is a London allowance, are £50,000 cheaper?

[Justine Greening]

I am sure my hon. Friend will want to make those points as part of the consultation that is under way, but as he will be aware, our formula looks at area cost adjustments that take into account variations in not only the general labour market but specifically the teaching labour markets. Such an approach is designed to compensate schools that face higher wage costs. We have a measure that is based on salaries, which we think is the best way, but as I said, this is a consultation and I am sure he will want to put the point he makes into it.