National Funding Formula: Social Mobility

Debate between Stephen Lloyd and Nick Gibb

Tuesday 22nd May 2018 Westminster Hall

[Stephen Lloyd]

On that basis, how does the Minister explain the fact that in the past 18 months or so the number of schools releasing teaching assistants has grown faster than in the previous few years? Does he accept that that must be because of budgetary pressures and that, if it happens across the piece, it could lead to severe challenges down the line?

[Nick Gibb]

We have a benchmarking website where schools can look at their pupil-staff ratios. We have a tool that schools are using, called the curriculum-led financial planning tool. Schools can examine their curriculum using the tool, which was developed by some schools in the north of England—the Outwood Grange multi-academy trust—to ensure that over a three to five-year time span they are planning their staffing to reflect their curriculum. I think that a lot of schools are applying that tool and becoming more efficient. We are helping schools to manage their resources in a way that ensures they can balance the budget.

Every school will, according to the national funding formula, receive an increase in funding of at least 0.5%, but the Secretary of State has acknowledged on many occasions, as I have today, that there have been cost pressures: employers’ national insurance contributions have risen, as they have across the public and private sectors, and there are higher employer’s contributions to the teachers’ pension scheme. We think that is the right thing to do, to get the balance of the cost of those things spread between the schools and the taxpayer and to help to deal with the deficit. We are helping schools to tackle those cost pressures, but the hon. Gentleman should remember that we are spending record amounts of money on schools—£42.4 billion this year rising to £43.5 billion next year. We have been able to do that and maintain per pupil funding in real terms because we have a strong economy and have managed the public finances in a sensible way, bringing down the deficit and keeping public spending under control.

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[Nick Gibb]

We have to live within our budget, and the Treasury has to work with the tax receipts it receives and deal with the historic budget deficit it inherited. Somebody has to lend the state that money, and they would not lend us £150 billion every year if we showed no sign of reducing that figure to something more manageable and did not plan ultimately to eliminate it altogether. That is what is happening. That is why we have a strong economy and the lowest level of unemployment for 40 years, why there are opportunities for young people to have a job once they leave our school system, and why fewer children are living in workless households. That is all part of how to manage the public sector in a serious way, which is what the Government have been doing since 2010. That is why we have been able to maintain school funding in real terms over that period, spend £23 billion on capital funding for schools, and fund an increase of 825,000 school places to deal with the increasing pupil population.[Official Report, 19 June 2018, Vol. 643, c. 2MC.]

When we came into office in 2010, we discovered that the previous Government had cut 100,000 school places, despite the increase in the birth rate at the turn of the millennium. We were very sensible in how we managed the capital budget and the revenue budget at a time when we had to tackle a very serious budget deficit as a consequence of the banking crash in 2008.

[Stephen Lloyd]

The Minister has been talking a lot about the national fair funding formula and the additional money in the constituencies of the hon. Member for South Shields (Mrs Lewell-Buck) and of my hon. Friends the Members for Bath and for Oxford West and Abingdon. When exactly will that national funding formula come in? Does the Minister acknowledge that when it comes in, it will be taking over from cuts of upwards of 20%? There is an awful lot for it to make up for.

[Nick Gibb]

It came in this year, for 2018-19. In the first two years, because of the transition, we want to allow local authorities to have some discretion over how they implement it on a school by school basis. Most authorities are moving quite close to the national funding formula if not moving to it fully, but some want to tweak it for the two years of the transition, and we have allowed that. As I said, we acknowledge that there have been cost pressures, and are helping schools to manage those cost pressures. Going forward, as the IFS said, we are maintaining funding in real terms per pupil for the next two years, because we have managed to secure an extra £1.3 billion.

We are absolutely committed to providing the greatest support to the children who face the greatest barriers to success. That is why we have reformed not just the schools formula but high needs provision, by introducing a high needs national funding formula. It will distribute funding for children and young people with high needs more fairly, based on accepted indicators of need in each area. The extra money that we are making available means that every local authority will see a minimum increase in high needs funding of 0.5% in 2018 and 1% in 2019-20. Underfunded local authorities will receive gains of up to 3% a year per head for the next two years. Overall, local authorities will receive £6 billion to support those with high needs in 2018-19, up by more than £1 billion since 2013-14.

I will draw my remarks to a close, to allow the hon. Member for Bath to make a final contribution to the debate. I thank all Members who have contributed to the debate. Our prime concern is the investment we are making in schools and the steps we are taking to ensure that that money reaches the schools that need it most. That is why we have introduced the national funding formula.

We have been reforming our schools system since 2010, by changing the curriculum to improve the way children are taught to read and the way that maths is taught in our schools. We have reformed our GCSEs so that they are on a par with some of the qualifications taken in higher education institutions around the country. We have been improving behaviour; we have given teachers more powers to deal with bad behaviour in our schools. Standards are rising in our primary and secondary schools, and the attainment gap between children from wealthier and poorer families is closing by 10% in both. Clearly there is more to do, but we are on the right track. Our funding formula is a fairer and more transparent way of distributing funding to our schools.

Oral Answers to Questions

Debate between Stephen Lloyd and Nick Gibb

Monday 19th March 2018 Commons Chamber

[Stephen Lloyd (Eastbourne) (LD)]

T7. A few weeks ago I had the privilege of meeting the father of Oliver King and founder of the Oliver King Foundation. His young lad, Oliver, died at school. His father’s ambition is to get a defibrillator in every school, because the work that the foundation has done identified that that would save the lives of many, many hundreds of people. Will the Government commit to supporting a defibrillator in every school?

[The Minister for School Standards (Nick Gibb)]

We have funded a considerable number of defibrillators in schools, and we are working with the British Heart Foundation to provide facilities for schools to teach first aid and lifesaving skills in schools.

Oral Answers to Questions

Debate between Stephen Lloyd and Nick Gibb

Monday 11th July 2011 Commons Chamber

[Stephen Lloyd (Eastbourne) (LD)]

2. What assessment he has made of the effects of the decision not to include religious education in the English baccalaureate.

[The Minister of State, Department for Education (Mr Nick Gibb)]

We have had a large number of representations about the potential effect of the English baccalaureate on religious education in schools. We are carrying out our own work to assess the extent of the changes that schools are making from next year, and we shall continue to monitor the take-up of all subjects and the associated staffing implications. Religious education remains a vital subject that it is compulsory for all schools to teach through to the age of 16.

[Stephen Lloyd]

I have been lobbying the Government on this issue for some months now. The schools Minister has repeatedly asked for evidence to back up claims that excluding RE from the E-bac will have a negative impact on take-up and teaching provision. Last week, a report by the National Association of Teachers of Religious Education, based on evidence from half of all state schools in England, showed that a quarter of schools are not providing statutory RE for 14 to 16-year-olds. Will the Minister address the issue, now that we have the proof?

[Mr Gibb]

The NATRE study cited by my hon. Friend suggests that around one in six schools anticipate a drop in religious studies entries at GCSE related to the E-bac, but it is not clear what overall effect that might have on take-up. Well over half of schools specifically indicated in that survey that there would not be a drop in GCSE entries in RS; indeed, a proportion said that there would be an increase in entries. That bears out the fact that the English baccalaureate does not prevent any school from offering RS GCSEs, and RE remains a statutory part of the curriculum.