Question to the Department for Education:

To ask the Secretary of State for Education, what steps her Department is taking to help schools plan their budgets for the 2023-2024 academic year.

The Government is committed to providing a world class education system for all pupils and has provided significant funding in education to achieve that. The Autumn Statement 2022 announced additional funding of £2 billion in each of the 2023/24 and 2024/25 financial years, over and above totals announced at the Spending Review 2021.

This means funding for mainstream schools and high needs is £3.5 billion higher in the 2023/24 financial year, compared to 2022/23 financial year. That is on top of the £4 billion, year on year increase provided in the 2022/23 financial year. This is an increase of £7.5 billion, or over 15%, in just two years.

Funding for both mainstream schools and high needs will total £58.8 billion in 2024/25. This is the highest ever level per pupil, in real terms as measured by the Institute for Fiscal Studies. The Government provides these increases to school revenue budgets so that schools can cover cost increases in the year ahead.

Funding for mainstream schools and high needs for 2023/24 is allocated through the schools and high needs National Funding Formulae (NFFs), published in July 2022. This determines the amount of funding each Local Authority receives for the schools in their area, and final school allocations are then determined by each Local Authority’s own local funding formula.

All schools should have been notified of their funding allocations for 2023/24. Academies will receive their funding allocations on an academic year basis from the Education and Skills Funding Agency, and maintained schools receive their funding on a financial year basis from their Local Authorities.

In addition to funding through the NFF, in 2023/24 mainstream schools also receive funding through the Mainstream Schools Additional Grant (MSAG). The Department has now published school level allocations of the MSAG funding, so that all eligible schools can see their additional funding through this grant. Pupil Premium allocations for the 2023/24 financial year have also been published.

The Department understands that one of the key concerns of schools regarding budget planning in the 2023/24 academic year is teachers’ pay.

Following unions’ rejection of the Government’s 4.5% offer in March, the independent School Teachers’ Review Body has submitted its recommendations to the Government on teacher pay for the 2023/24 academic year, as part of the normal process. The Department will be considering the recommendations and continues to work across government to ensure that announcements can be made as early as possible. This year, for example, to allow trusts more time to prepare their budgets, the Department has extended the deadline for the Budget Forecast Return that academies are required to provide, setting out their budget plans, to 31 August 2023.

It is recommended that schools consider the range of possible scenarios on the different cost factors, including on support staff pay and energy, that might materialise, and what the implications would be for their individual school.

Guidance to help schools complete forecasts can be found here: https://www.gov.uk/government/publications/academies-budget-forecast-return-guide-to-using-the-online-form/academies-budget-forecast-guidance-for-completing-the-online-form. The Department’s School Resource Management offer also includes advice to help with forecasting, including estates management advice, buying guides and how to join or create your own school professionals network.