School funding to fall by 5% in per pupil terms

1 Jun 16

School funding per pupil is set to fall by 5.5% over this parliament according to an analysis of the impact of government reforms by the think-tank Reform.

It analysed the government’s school funding plans, including the extra £500m of additional core funding allocated to schools at the Budget as part of proposed changes to the funding formula. It found overall funding for schools would increase over the next five years.

This followed a Conservative election pledge to protect the Dedicated Schools Grant, the main source of school income, in cash terms per pupil, as well as the Pupil Premium.

This means overall school funding will increase by 1.4% in real terms, which Reform said made it legitimate for Nicky Morgan to claim that the overall schools budget is being protected in real terms.

However, combined average spending per pupil will fall from around £6,190 in 2015-16 to approximately £5,850 in 2019-20 − a decrease of 5.5% due to school rolls increases.

Reform’s head of education Amy Finch said such reductions could lead to greater efficiency.

The report highlighted that some schools have been able to negotiate better rates on utilities and consultancy services, while others are planning a reduction in staff.

“Greater efficiency across the school system is possible, and is urgently needed, for school performance to be maintained,” Finch added.

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