Village schools will get extra funding at the expense of inner-city establishments under a new system disclosed yesterday by the education secretary.
Under the current system, funding is given to local authorities who use their own formulas to calculate how much money schools should receive. This means similar schools in different regions get vastly different sums.
The government wants to introduce a national scale, however, meaning all schools would receive the same amount of money depending on the background of their pupils.
It will also use a “sparsity factor” to give extra money to schools in remote areas. Justine Greening also promised more cash for schools taking pupils who were struggling academically, or those with a mid-year influx of children through factors including immigration. Labour said the new funding formula would leave millions of children worse off while grammars would be allowed to open. Many of the areas to benefit are Tory-dominated shires, while urban Labour heartlands will lose money.
There will be no ceiling on funds granted to successful schools, but those losing out face a reduction limited to 3 per cent. This could still amount to thousands of pounds. A National Audit Office report published earlier this week said that the protected schools budget would fall by eight per cent in real terms over the next three years.
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For example, Mossbourne Academy, in Hackney, north London, would lose almost £240,000 of basic funding under the new formula. Askwith primary school in North Yorkshire, however, would see its funding rise from £405,000 to £440,000, an increase of 8.6 per cent. The London boroughs of Hackney, Southwark, Newham, Lambeth and Lewisham will lose the most money.
Announcing the formula, Ms Greening told the Commons that the current system was unfair and out of date.
Angela Rayner, shadow education secretary, said the only new money being offered was to grammar schools.
Kevin Courtney, general secretary of the National Union of Teachers, said: “Funding cannot be ‘fair’ if it is not sufficient.”
Russell Hobby, general secretary of the National Association of Head Teachers, said the new formula was a step in the right direction. He added: “But it will only work for pupils if there are sufficient funds in the first place.”