Question to the Department for Education:

To ask the Secretary of State for Education, what plans he has to support schools and colleges with covid-19 related financial costs.

The Department appreciates the continued and significant efforts made by schools and their staff to keep schools open this term. Returning to school full time has been vital for children’s education and for their wellbeing and has rightly been a national priority. Latest figures show that over 99% of state-funded schools are open.

The Department published guidance to support schools to welcome back all children full time. The guidance can be viewed at: https://www.gov.uk/government/publications/actions-for-schools-during-the-coronavirus-outbreak/guidance-for-full-opening-schools.

Schools have also continued to receive their core funding allocations throughout the COVID-19 outbreak. Following last year’s Spending Round, school budgets are rising by £2.6 billion in 2020-21, £4.8 billion in 2021-22 and £7.1 billion in 2022-23, compared to 2019-20. This includes an additional £780 million this year and £730 million next year for high needs, taking total high needs funding to over £8 billion. As stated in our guidance, schools should use their existing resources, including these funding increases, when making arrangements to support children this term.

Ministers and officials continue to engage regularly with school leaders and their representatives on a wide range of issues around COVID-19, including discussions in relation to costs faced by schools at this time.

The Department also recognises the great efforts made by further education (FE) colleges and their staff to keep colleges open this term, and the financial impact of the COVID-19 outbreak on the sector. We have protected grant funding to the FE sector, worth over £3 billion, for a full year through paying scheduled monthly profiled payments for the remainder of the 2019/20 funding year and paying allocations for 2020/21 in line with the national profile. This year, the Department has increased investment in education and training of 16-19 year olds by £400 million, including an increased base rate, and more funding for high cost and high value subjects. We have also brought forward £200 million of the £1.5 billion for capital funding in colleges. For other providers with Education, Skills and Funding Agency contracts, we set up a Provider Relief Scheme.

For colleges in significant financial difficulties, the existing support arrangements remain in place, including short-term emergency funding. The Department adapted and opened the College Collaboration Fund to support colleges to respond to current challenges, and we have announced the 20 colleges whose bids were successful on GOV.UK.

My right hon. Friend, the Chancellor of the Exchequer, has announced an extensive and unprecedented package of support measures for businesses and employees. FE colleges can apply to the Coronavirus Job Retention Scheme for non-grant-funded employees, which has been extended until March 2021.

The Department is working closely with colleges to monitor the financial impacts of COVID-19 and ensure that any colleges facing financial difficulties are able to access relevant support. Financial forecasts for the current year were submitted by colleges in July, and updated cashflow projections are due to be provided this month.