Question to the Department for Education:

To ask the Secretary of State for Education, how deprivation factors are taken into account in school funding formulae.

In current funding arrangements, each local authority devises a local funding formula through which they distribute funding to schools in their locality. The formula must include a deprivation factor, and local authorities have the flexibility to use a pupil-based measure (eligibility for free school meals (FSM)), an area-based measure (the Income Deprivation Affecting Children Index, which is known as IDACI) or both in order to identify pupils eligible for this funding.

We are committed to introducing a national funding formula so that schools’ funding is matched fairly and consistently to need. In our recent consultation on the principles and building blocks of a national funding formula, which closed on 17 April, we proposed to include a deprivation factor which uses a combination of the FSM and IDACI measures to identify eligible pupils. We are now reviewing all responses and will set out the detail of the formula in a second consultation, to be published later this year.

Further detail on our proposals for a deprivation factor in a national funding formula can be found on page 19 in our consultation document: https://consult.education.gov.uk/funding-policy-unit/schools-national-funding-formula/supporting_documents/Schools_NFF_consultation.pdf