Schools Update: National Funding Formula

Lord Storey Excerpts

Thursday 14th September 2017 Lords Chamber

[Lord Nash]

The noble Lord makes some very good points about teacher recruitment and retention. Of course we have a strong economy with very high levels of employment and very low levels of unemployment which impacts on the ability to recruit teachers. We are doing a huge amount of work on improving our recruitment approach, which is a much more regionally focused approach to look at where we particularly need to recruit teachers. There is no doubt that the work of a number of our multi-academy trusts in career development, CPD and teacher retention will help teacher retention.

The independent School Teachers’ Review Body has recommended teacher pay increases. We have listened carefully to what it recommended and accepted the recommendations. We continue to work closely with schools to help them manage their finances.

[Lord Storey (LD)]

I think we all welcome this, and the Government are to be congratulated on bringing a fair funding formula forward—four Fs, such alliteration. I have a number of questions. Schools will still face financial difficulties because the problem for school budgeting has been oncosts, such as national insurance and the costs of buying in services, which vary dramatically, and we will not know the full financial impact until we see the figures working in schools. In terms of primary schools and £3,500 per pupil, will that be the same for each key stage—that is, foundation, key stage 1 and key stage 2—or will it vary between the stages? I am fascinated by the fact that we are gradually bringing local authorities back into the frame. Who would have thought that the archenemies, local authorities, are now going to have a little role in terms of the distribution of funds in their areas? In terms of schools in remote areas, what is the definition of a small school which would be eligible for this extra funding?

[Lord Nash]

The noble Lord is absolutely right about the oncosts, which is what I was referring to, and them actually being cost pressures rather than cuts. But as I say, we have very sophisticated work under way in the department looking at school finances. We have something called a RAT—a risk assessment tool, which is slightly easier to say than a fair funding formula. We are working with local authorities and with academy trusts to ensure that their financial planning is good. I do not really recognise the expression “archenemy” as applied to local authorities. We are working very closely with local authorities on a number of fronts, including the free schools programme and our basic needs school place planning. We have increased the number of school places by three-quarters of a million in the last six years. We now have the strategic improvement boards, on which local authority representatives and regional schools commissioners sit, among others. I am confident that this will improve relationships even further. But, as I think I have said, the relationships with local authorities are generally extremely good. The noble Lord may be very pleased to hear that.