New funding formula fails ‘fairness’ test, as £3bn cuts loom over school budgets

14th December 2016

- New schools funding formula fails ‘Fairness’ test and will divert vital resources from schools in disadvantaged areas to affluent areas
- Calls grow for Government to better fund education on the day the National Audit Office publishes report that schools face £3bn cuts

The Secretary of State for Education announced new funding arrangements for schools today, as part of the highly anticipated ‘fairer’ funding formula.

SCHOOLS NorthEast, the representative body for all 1,250 schools in the region, has always supported the overhaul of the current funding formula as long as the result is fair to all schools in the country.

But the arrangements announced today by Education Secretary Justine Greening fall short of ensuring all schools will receive the necessary funds to deliver education of the highest standards.

Mike Parker, Director of SCHOOLS NorthEast, said: “While we welcome the introduction of a national funding formula, we remain deeply concerned the Government is doggedly pursing plans to include an Area Cost Adjustment which will divert vital resources from schools in disadvantaged areas to affluent boroughs. Every child’s education should be funded fairly, regardless of location or house prices.

“This will only drive fresh inequality based on cost of living when there are many factors that influence a teacher’s decision on where they work. We will be writing to all North East MPs to oppose this multiplier. Our region’s schools are already finding it difficult to recruit teachers, and fewer funds to do so will only fuel a crisis.”

SCHOOLS NorthEast has welcomed plans to include a sparsity factor to support rural schools, as well as a shift in funding to support schools in more transient communities where there are larger numbers of children moving into and out of schools during the school year.

The Government has come under growing pressure from MPs of all sides and the wider public about the lack of additional funding for schools. The scale of budget cuts was highlighted today by the National Audit Office which has calculated schools are facing £3bn in cuts over the coming years.

Mr Parker added: “The legacy of underfunding in this region is clear - our schools receive £45m less than national average and would get an additional £360m/year if they were funded at London levels.

“The reality is that we not only need to distribute the educational budget fairly, the whole education system is desperately in need of additional funding. The Government cannot aspire to the Rolls Royce of education systems while only spending enough to buy a Ford Focus.

“To truly achieve a world class education system, the Government needs to invest significantly so that schools can be more innovative and become hotbeds for education.”