School Funding

Nick Gibb Excerpts

Thursday 25th April 2019 Commons Chamber

[The Minister for School Standards (Nick Gibb)]

Let me start by saying that I share the sentiments expressed by the hon. Member for Wythenshawe and Sale East (Mike Kane) about Stephen Yaxley-Lennon’s visit to his constituency today, and I am sure they are shared right across this House.

I congratulate my hon. Friend the Member for St Albans (Mrs Main) on securing and opening this important debate. The Government are determined to create a world-class education system that offers opportunity to every child, no matter their circumstances or where they live. I share the views of many in this debate that schools must have the resources they need to make that happen. That is why we are investing in our schools, delivering on our promise to make funding fairer so that the investment is going to the right places, and helping schools to make the most out of every pound they receive.

[Julian Knight (Solihull) (Con)]

Does the Minister agree with my analysis, based on one-to-one meetings with headteachers in Solihull, that much of the long-term financial challenge relates to teachers’ pensions and that we must put those on a sustainable long-term footing, as well as dealing with the real challenges we face in the here and now?

[Nick Gibb]

My hon. Friend makes an important point about the teachers’ pension scheme. The employer contribution rate will increase from 16% to 23% in September 2019 but, as confirmed earlier in April, we will be providing funding for this increase in 2019-20 for all state-funded schools, further education and sixth-form colleges, and adult community learning providers. My hon. Friend the Member for Saffron Walden (Mrs Badenoch) asked about that funding in future years, and it will of course be a matter for the spending review.

The hon. Member for Enfield, Southgate (Bambos Charalambous) asked whether I could meet his local headteachers to discuss funding, and I would be delighted to do so. The Secretary of State and I meet headteachers regularly, almost on a weekly basis, to discuss not only school funding, but other issues such as standards in our schools, and we would be happy to do that with the hon. Gentleman’s local headteachers as well.

Standards are rising in our schools. Thanks in part to our reforms, the proportion of pupils in good or outstanding schools has increased from 66% in 2010 to 85%. I listened carefully to the excellent opening speech by my hon. Friend the Member for St Albans, who has raised the issue of school funding, both for her constituency’s schools and nationally, on many occasions, including in Westminster Hall debates recently and again today. I am sure that the Treasury will also have heard what she had to say today. I can give her the assurances she seeks that the Secretary of State and I are both working hard to prepare our spending review bid for when that process starts later in the year to ensure that we have the best bid possible for schools, high-needs and post-16 funding.

As I was saying, standards are rising in our schools. In primary schools, our more rigorous curriculum is on a par with the highest-performing in the world and it has been taught since September 2014. Since it was first tested in 2016, we have seen the proportion of primary school pupils reaching the expected standard in the maths test rise from 70% to 76% in 2018, and in the reading test the figure has risen from 66% to 75%. Of course we would not know that if we adopted the Labour party’s policy of scrapping SATs, which of course we will not do.

[Mike Kane]

Will the Minister give way?

[Nick Gibb]

I will not give way.

Since the introduction of the phonics check in 2012, the proportion of six-year-olds reaching the expected standards in the phonics decoding check has risen from 58% in 2012 to 82% last year. We have risen from joint 10th to joint eighth in the PIRLS—the Progress in International Reading Literacy Study—of the reading ability of nine-year-olds, achieving our highest ever score in that survey. In secondary schools, our more rigorous academic curriculum and qualifications support social mobility by giving disadvantaged children the knowledge they need to have the same career and life opportunities as their peers. The attainment gap between the most disadvantaged pupils and their peers, measured by the disadvantage gap index, has narrowed by nearly 10% since 2011.

To support these improvements, the Government have prioritised school spending, while having to take difficult decisions in other areas of public spending. We have been able to do that because of our balanced approach to the public finances and to our stewardship of the economy, reducing the annual deficit from an unsustainable 10% of GDP in 2010—some £150 billion a year—to 2% in 2018. The economic stability that that provided has resulted in employment rising to record levels and unemployment being at its lowest level since the 1970s, giving young people leaving school more opportunities to have jobs and start their careers. Youth unemployment is at half the rate it was when we came into office in 2010, taking over from Labour.

It is our balanced approach that allows us to invest in public services. Core funding for schools and high needs has risen from almost £41 billion in 2017-18 to £43.5 billion this year. That includes the extra £1.3 billion for schools and high needs that was announced in 2017 and that we have invested across 2018-19 and 2019-20, over and above the plans set out in the spending review.

Figures from the Institute for Fiscal Studies show that in 2020 real-terms per pupil funding for five to 16-year-olds in schools will be more than 50% higher than it was in 2000. We do recognise, though, the budgeting challenges that schools face as we ask them to achieve more for children. One element of it is about making sure that money is directed to where it is needed most. Since April last year, we have started to distribute funding through the new national funding formula, with each area’s allocation taking into account the individual needs and characteristics of its pupils and schools. Schools are already benefiting from the gains delivered by the national funding formula.

Since 2017, we have given every local authority more money for every pupil in every school, while allocating the biggest increases to the schools that the previous system had left most underfunded. By 2019-20, all schools will attract an increase of at least 1% per pupil compared with 2017-18 baselines, and the most underfunded schools will attract up to 6% more per pupil by 2019-20, compared with 2017-18.

[Robert Halfon]

I welcome what my right hon. Friend said about phonics and SATs, which it is important we keep, but does he agree that if the national health service can have a 10-year plan and a five-year funding settlement, education should have a 10-year plan and a minimum of a five-year funding settlement?

[Nick Gibb]

As I have said to the Education Committee, which my right hon. Friend chairs, I do not disagree with that view. We will say more about our approach to the spending review in due course.

In Hertfordshire, where the constituency of my hon. Friend the Member for St Albans is located, funding for schools has increased this year under the national funding formula by 2.4% per pupil compared with 2017. That is equivalent to an extra £32.1 million in total, when rising pupil numbers are taken into account.

My hon. Friend the Member for Saffron Walden made a measured and therefore persuasive speech about the funding of schools in her constituency. As a consequence, her words will undoubtedly carry weight with the Treasury. She made the important point that 90% of pupils in her constituency now attend good or outstanding schools, compared with just 67% in 2010.

I listened carefully to my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton); as a neighbouring MP, I find I always do. He will be aware that funding in his constituency has risen by 5.5% per pupil compared with 2017. That is one of the highest increases and reflects the historical underfunding of West Sussex schools—something the national funding formula was introduced to address. He referred to teachers’ pay, which is due to rise by 3.5% for teachers on the main pay scale and by 2% for those on the upper pay scale.[Official Report, 1 May 2019, Vol. 659, c. 3MC.] We are funding both those pay rises, except for the first 1%, which schools will have budgeted for already.

I also listened carefully to the speech by my right hon. Friend the Member for New Forest West (Sir Desmond Swayne). I congratulate him on the fact that 96% of pupils in schools in his constituency are attending good or outstanding schools. He will be aware that under the national funding formula per pupil funding in his constituency is rising by 4.5% compared with 2017-18.

I welcome the contribution to the debate by my hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti) and his acknowledgement that, as a result of the fairer national funding formula, schools in his constituency will attract a 5.9% per pupil increase. In a compelling speech, my hon. Friend the Member for Cheltenham (Alex Chalk) raised the issue of special needs funding. Our commitment to helping every child to reach their full potential applies just as strongly to children with special educational needs and disabilities as it does to any other child, and we know that schools share that commitment. We recognise the concerns that have been raised about the costs of making provision for children and young people with complex special educational needs. We have increased overall funding allocations to local authorities for high needs year on year, and we announced in December that we will provide an additional £250 million over these last two financial years.

[Jim McMahon]

Will the Minister give way?

[Nick Gibb]

I will not, because I am running out of time; I do apologise to the hon. Gentleman.

In Hertfordshire, for example, that means that the authority will receive an additional £5.7 million between these two financial years, taking its high-needs funding to £114.7 million. High-needs funding nationally is now over £6 billion, having risen by £1 billion since 2013. We will ensure in the coming spending review that we keep a firm focus on identifying the resources required to ensure that the most vulnerable children are receiving the support they need. Of course, the response to pressures on high-needs budgets cannot be about just funding. It must also be about ensuring that we are spending the money effectively.

My hon. Friend the Member for St Albans also raised the issue of post-16 funding. We recognise the pressures that post-16 funding has been under—my right hon. Friend the Minister for Apprenticeships and Skills is also listening to this debate. We have protected the base rate of funding for all 16 to 19-year-old students until 2020, and our commitment to the 16-to-19 sector has contributed to what is the highest proportion of 16 to 17-year-olds participating in education or apprenticeships since records began. We are also providing additional funding to support colleges and schools to grow participation in level 3 maths. Institutions will receive an extra £600 for every additional student for the next academic year, 2019-20.

I have listened carefully to hon. and right hon. Members’ speeches today. The Government recognise the pressure on schools as we seek to balance the public finances. While bringing down the budget deficit, we have protected funding for the NHS, international development and schools for five to 16-year-olds. We are now preparing the best spending review bid that we can for schools, for high needs and for post-16 funding, and today’s debate will undoubtedly have an influence on the Treasury. Standards are rising in our schools. The attainment gap between children from disadvantaged backgrounds has closed by 13.5% since 2011 for primary schools and 9.5% for secondary schools. Reading standards are rising, maths standards are rising and the proportion of pupils being taught in good or outstanding schools has risen significantly. I am grateful to all Members who have contributed to today’s debate and I know that they will have been heard in all the right places.