Dedicated Schools Grant

Richard Foord Excerpts

Tuesday 6th May 2025 Westminster Hall

[Richard Foord (Honiton and Sidmouth) (LD)]

It is an honour to serve with you in the Chair, Ms Butler. Let me start with a simple fact: Devon is one of the worst-funded education authorities in the country. For 2024-25, Devon receives just £5,484 per pupil—about £200 less than the national average and about £1,500 less per pupil than in inner London. I have experienced the difference through the eyes of the teachers I have talked to in Devon who have taught in both inner London and rural Devon, and who described to me the difference the funding makes. For an average Devon primary school, it equates to losing the budget for one whole teacher.

Devon is an f40 authority—one of the 40 lowest-funded areas in England. The national funding formula was supposed to level the playing field, but it has left schools in areas like east and mid Devon struggling. Nowhere is the crisis more obvious than in special educational needs. Devon’s high needs block allocation for 2025-26 is £125 million, but the anticipated cost of supporting SEND children is £172 million. Up to now that funding gap has been filled by the so-called safety valve, but I understand that we might not have that safety-valve relief from 2026. If we compare Devon’s high needs allocation per pupil to that of a council such as Camden, we see a real disparity, as we do with Westminster, which receives £2,610 per pupil against Devon’s £1,245 per pupil. Devon is being asked to deliver special educational needs provision on half the budget.

Let me share the story of one affected family. Kathryn Radley lives in Uplyme in the area I represent, and her daughter Sophia is autistic. At one point Sophia was offered just six hours a week of online education, and her family had to borrow money to keep that minimal support going when the council did not fund it. The education, health and care plan that was issued for her was unworkable, did not name a school and was not supported by any deliverable provision. Sophia, who did not misbehave or disrupt her class, and who simply needed specialist support, was left isolated at home with anxiety, and with no place in the system.

Devon currently spends £55 million on SEND provision in the private sector, which is not properly audited or scrutinised. Meanwhile, state schools in the area I represent, such as in Honiton, Axminster and Sidmouth, are crying out for more resources to support special educational needs—more teaching assistants, specialist hubs and early intervention services—but they cannot get them because the per pupil funding is far less than it is elsewhere. We therefore see teachers who are overwhelmed, too few teaching assistants and staff who prioritise behavioural cases over inclusion, meaning that many children like the one I described simply cannot cope.

Devon needs urgent and fairer funding for its schools from the dedicated schools grant. We need to expand local SEND resource bases and give mainstream schools the tools they need to include every child. Indeed, the Department for Education should give Devon’s children the funding for education that they deserve.

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[Richard Foord]

After the Government conduct that review of the national funding formula in 2026-27, will the Minister set out what additional funding she expects to have to put into the formula that urban councils such as Westminster might attract to cover their costs?

[Catherine McKinnell]

I think the hon. Gentleman will appreciate that I cannot get into the detail of a particular local authority area, or indeed a particular aspect of the funding. He will also appreciate that the national funding formula is fairly complex and obviously any changes to it will be very carefully considered, so that we make sure that it is allocated fairly. Nevertheless, I appreciate the issues that various hon. Members have raised today about the different challenges faced by different parts of the country, different demographics and different geographies. Obviously, all those factors will need to be taken into consideration.

Members have also touched on the issue of pay. In its written evidence to the review body, the Department proposed a 2025 pay award for teachers of 2.8%. We were clear that schools will be expected to fund that award from the overall funds they will receive next year, including the additional £2.3 billion provided in the autumn Budget. The schools’ costs technical note, which was published in March, forecast a £400 million headroom in school budgets nationally in this financial year before staff pay awards. As I said at the beginning, I recognise that individual schools will have to balance funding and costs differently, which will matter in how any staff pay award might affect their budget. We will continue to support schools as they navigate these decisions, which are in line with the asks of the rest of the public sector, too.