Schools: Finance

(asked on 24th April 2025) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the adequacy of funding through the National Funding Formula for (a) small schools and (b) rural schools.


Answered by
Catherine McKinnell Portrait
Catherine McKinnell
Minister of State (Education)
This question was answered on 2nd May 2025

The government recognises the essential role that small schools play in their communities, many of which are in rural areas. The schools national funding formula (NFF) accounts for the particular challenges faced by small schools in rural areas through the lump sum and sparsity factor. This recognises that some schools are necessarily small because they are remote and do not have the same opportunities to grow or make efficiency savings as other schools, and that such schools often play a significant role in the rural communities they serve.

All small and rural schools have benefited from the increase to core factors in the NFF in 2025/26 financial year, including the NFF lump sum, which is set at £145,100. This provides a fixed amount of funding that is unrelated to pupil-led factors. The lump sum is particularly beneficial to small schools more reliant on an element of funding that is not driven by pupil numbers.

Schools can attract additional funding through the sparsity factor in the NFF if they are both small and remote. Eligible primary schools attract up to £57,400, and all other eligible schools attract up to £83,400, in sparsity funding in the 2025/26 financial year. The department is providing £100 million in total through the sparsity factor in the 2025/26 financial year.

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