Schools Update: National Funding Formula

Lord Young of Norwood Green Excerpts

Thursday 14th September 2017 Lords Chamber

[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.

[Lord Young of Norwood Green (Lab)]

My Lords, it would be churlish not to congratulate the Government on a fairer formula, although we will need to look at the repercussions. I still meet head teachers who are having to reduce the number of teachers and are under pressure as a result of national insurance, pensions and things like that. There is concern on that front. I have two other points to make. I presume, as we have not heard any reference to it, that the £50 million or so of funding for the extension of grammar schools has disappeared. I hope that will not be a further oncost, as I share the view of the noble Lord, Lord Lucas, on that. I read the couple of paragraphs in the document, but does this sustain the existing pupil premium or slightly increase it? Can the Minister just confirm that? It certainly makes a significant difference in my primary school budget. I have already declared an interest in a previous debate as chair of the governing body.

[Lord Nash]

I think the noble Lord knows that we will not be changing the rules about new grammar schools. They can of course expand. The pupil premium rates are being sustained. That is all I have to say.