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George Osborne promises national funding formula for schools George Osborne promises national funding formula for schools
(3 months later)
The government is to introduce a national funding formula for schools in an effort to iron out the big differences in financial support between regions – which in some cases amount to thousands of pounds per pupil – but which experts warn will inevitably create winners and losers as resources get shifted.The government is to introduce a national funding formula for schools in an effort to iron out the big differences in financial support between regions – which in some cases amount to thousands of pounds per pupil – but which experts warn will inevitably create winners and losers as resources get shifted.
Details of the consultation have yet to be announced but it is likely that local authorities lose discretion over schools funding, and would instead be restricted to applying a national formula.Details of the consultation have yet to be announced but it is likely that local authorities lose discretion over schools funding, and would instead be restricted to applying a national formula.
According to the comprehensive spending review documents, adopting a national formula would be "a vital step towards fixing the historic and unfair differences in funding between schools in different local authorities". The scheme would include how many pupils in a school or region are disadvantaged as part of the formula.According to the comprehensive spending review documents, adopting a national formula would be "a vital step towards fixing the historic and unfair differences in funding between schools in different local authorities". The scheme would include how many pupils in a school or region are disadvantaged as part of the formula.
The chancellor, George Osborne, announcing the policy to parliament as part of the CSR, said: "School spending will be distributed in a fairer way than ever before." A national formula would "ensure that no child in any part of this country will be discriminated against".The chancellor, George Osborne, announcing the policy to parliament as part of the CSR, said: "School spending will be distributed in a fairer way than ever before." A national formula would "ensure that no child in any part of this country will be discriminated against".
Osborne's remarks suggest that the national formula envisaged may see funding shifted from relatively expensive urban areas to rural and suburban schools, which often receive less than their inner-city counterparts, especially compared with those in London, where the cost of living is higher.Osborne's remarks suggest that the national formula envisaged may see funding shifted from relatively expensive urban areas to rural and suburban schools, which often receive less than their inner-city counterparts, especially compared with those in London, where the cost of living is higher.
Schools in England currently receive most of their funding from local authorities, with each authority designing its own formula. The result is a wide variation in support per pupil. Primary schools in England can receive between £3,000 and £6,000 per pupil, while most secondary schools receive between £5,000 and £7,000.Schools in England currently receive most of their funding from local authorities, with each authority designing its own formula. The result is a wide variation in support per pupil. Primary schools in England can receive between £3,000 and £6,000 per pupil, while most secondary schools receive between £5,000 and £7,000.
Figures released by the government in 2011 showed that schools in Hackney, east London, spent an average of £8,500 per pupil, the highest in the country. Meanwhile, schools in the local authority of Knowsley in Merseyside spent the least, at £4,300 per pupil.Figures released by the government in 2011 showed that schools in Hackney, east London, spent an average of £8,500 per pupil, the highest in the country. Meanwhile, schools in the local authority of Knowsley in Merseyside spent the least, at £4,300 per pupil.
The variation in funding is caused in part by the different make-up and characteristics of schools, but also because of the variation in how local authorities fund those differences.The variation in funding is caused in part by the different make-up and characteristics of schools, but also because of the variation in how local authorities fund those differences.
Considering the likely outcomes of a national funding formula in an earlier report, the Institute for Fiscal Studies said: "Whatever formula is chosen, it will lead to a large number of winners and losers relative to existing policy.Considering the likely outcomes of a national funding formula in an earlier report, the Institute for Fiscal Studies said: "Whatever formula is chosen, it will lead to a large number of winners and losers relative to existing policy.
"This is an inevitable consequence of replacing the current system, where funding levels can be based on myriad historical and local factors, by a simpler version that seeks to make funding more transparent and consistent across the country.""This is an inevitable consequence of replacing the current system, where funding levels can be based on myriad historical and local factors, by a simpler version that seeks to make funding more transparent and consistent across the country."
But according to the IFS, the crucial question is whether the advantages of a national formula – simplicity, transparency and responsiveness – exceed the costs that changing would involve.But according to the IFS, the crucial question is whether the advantages of a national formula – simplicity, transparency and responsiveness – exceed the costs that changing would involve.
"If one believes that a national funding formula represents the most desirable system, then the numbers of winners and losers merely show how far the status quo is from an ideal scenario," the IFS concluded."If one believes that a national funding formula represents the most desirable system, then the numbers of winners and losers merely show how far the status quo is from an ideal scenario," the IFS concluded.
Even schools that are similar in their characteristics can see wide variations in funding, depending on their local authority.Even schools that are similar in their characteristics can see wide variations in funding, depending on their local authority.
According to Department for Education analysis, identical primary schools in different areas can see funding vary by £1,300 per pupil. Similar secondary schools' funding can vary by as much as £1,800 per pupil. In a secondary school of 1,000 pupils that amounts to £1.8m, enough to pay for around 40 extra teachers, according to the DfE.According to Department for Education analysis, identical primary schools in different areas can see funding vary by £1,300 per pupil. Similar secondary schools' funding can vary by as much as £1,800 per pupil. In a secondary school of 1,000 pupils that amounts to £1.8m, enough to pay for around 40 extra teachers, according to the DfE.
The possible shift is supported by many headteachers.The possible shift is supported by many headteachers.
"We welcome moves towards a national funding formula. Without it, school freedoms on spending decisions are meaningless – so are comparisons on accountability between schools, when budgets can differ by thousands of pounds per pupil for no good reason," said Russell Hobby, general secretary of the National Association of Head Teachers."We welcome moves towards a national funding formula. Without it, school freedoms on spending decisions are meaningless – so are comparisons on accountability between schools, when budgets can differ by thousands of pounds per pupil for no good reason," said Russell Hobby, general secretary of the National Association of Head Teachers.
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