Question to the Department for Education:

To ask the Secretary of State for Education, whether she plans to (a) review and (b) adjust the national funding formula to reflect additional (i) staffing, (ii) maintenance, (iii) transport and (iv) other costs for small rural schools.

The 2025/26 schools national funding formula (NFF) uses the same factors as the 2024/25 NFF. This continuity from the previous year minimises disruption to local authorities and schools.

The government is undertaking a review of the schools NFF to consider potential changes for 2026/27 and future years, recognising the importance of a fair funding system that directs funding where it is needed. The department will consider the operation of the ‘sparsity’ factor, which targets revenue funding for small and rural schools, as part of that review.

Funding for capital expenditure sits outside of the NFF. The department expects responsible bodies, such as local authorities, multi-academy trusts, and dioceses, to ensure that their schools are well maintained. In addition to the schools NFF, responsible bodies, such as local authorities and academy trusts, have access to capital funding each year to improve the condition of their buildings through either a school condition allocation or the Condition Improvement Fund. Schools are also directly allocated devolved formula capital funding which allows schools to invest in small-scale capital projects. Capital funding to improve the condition of the school estate is increasing to £2.1 billion for the2025/26 financial year, up from £1.8 billion in the 2024/25 financial year.

Funding for pupils’ home to school transport is also outside of the schools NFF, which is funded through the local government finance settlement, administered by the Ministry of Housing, Communities and Local Government’s allocations to local authorities.