2022 Autumn Term 1

The know zone

  • Primary concerns
    Key Stage 2 data seems to confirm expectations: the pandemic has hit primary pupils' learning hard, though with one curious exception, says Tiffnie Harris. More
  • The wait goes on
    The national funding formula (NFF), introduced five years ago, is taking a long time to implement and still more work is needed to make it fit for purpose, says Julia Harnden. More
  • Office for Students
    As last year's sixth formers head off to university this month, Kevin Gilmartin looks at just who is watching over the millions of undergraduates out there. More
  • Strategy falls short
    Hayley Dunn says the government's new school resource management (SRM) strategy doesn't go far enough to recognise the vital role of school business leaders. More
  • Just the job?
    Are you finding it difficult to recruit staff? If so, are there particular roles or subjects that you are struggling to recruit for? Here, ASCL members have their say. More
  • Positive influences
    Director of Learning David Whitaker says ASCL Council provides him with a voice and an opportunity to influence 'the system'. Here, he shares his passion for school leadership, Council, music and beer. More
  • Leadership magic
    A good headteacher knows when to stay in the background and let people get on with their jobs, just like a famous, perpetually stoned, animated bunny, says Carl Smith. More
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The national funding formula (NFF), introduced five years ago, is taking a long time to implement and still more work is needed to make it fit for purpose, says Julia Harnden.

The wait goes on

The national funding formula (NFF) for schools in England was introduced five years ago after decades of campaigning by ASCL and with agreement across the sector that the principles of transparency, predictability and fairness should be applied to how we fund our schools. The formula is described in the government’s levelling up white paper as a means of ‘ending the postcode lottery’ (bit.ly/3JUP2r6). It all sounds so sensible, so why is it taking so long? 

Behind the scenes, ASCL continues to respond to formal consultations on progression to a direct national funding formula. In between, we have regular dialogue with members and colleagues at ASCL Council and with DfE colleagues at stakeholder meetings. 

These discussions leave us in no doubt that what we need is a formula that works properly and that we must not sleepwalk into legislative change. For example, the continued need to use top-up funding for those schools where the NFF does not deliver the government’s own minimum per pupil funding levels (MPPFL) just doesn’t seem right. This is not a formula that is working properly. The MPPFL should be the starting point to which funding for additional needs is added. 

We want a national formula that channels funding directly to schools because we think that most spending decisions are best made at school or trust level. But we do not want a national distribution model at any cost, so we are happy to keep talking about it. Current plans suggest that while the finish line may be in sight, we are not going to cross it any time soon. 

Five years on 

It is still local formulae that ultimately determine mainstream school funding as local authorities (LAs) retain some flexibility. That said, the direction of travel is clear. In the 2021/22 funding year, 105 (70%) of the 152 local authorities who have responsibility for education had moved all the factor values in the local formula closer to the NFF, and another 73 were within 1% of the NFF factor values. This is after allowing for area cost adjustments. 

One of the trickiest nuts to crack is the increasing demands on the high needs funding block and the associated deficits seen in LAs across the country. The number of LAs making transfers between the schools and high needs blocks increased to 76 in 2021/22 from 67 the year before. We know that the government has put more money into high needs – an extra £2.5 billion since 2019/20 – but if half of all LAs still need to move money out of the schools block the problem is a long way from being solved. 

The special educational needs and disabilities (SEND) review green paper (bit.ly/3AmW4Sj) came with masses of potential but change will need to be properly funded if the ambition of equity of opportunity stands any chance of becoming reality. 

Falling pupil numbers 

Government statistics (bit.ly/3QGi1kI) indicate that pupil numbers are declining more quickly than previously thought. Over the next ten years primary numbers will fall by about one fifth. By 2032, secondary numbers are set to be 6% lower than now, having peaked in the next couple of years. 

This needs to be considered alongside the completion of reforms to a direct NFF because the majority of available funding is distributed according to pupil-led factors. Small changes in pupil numbers can have a significant impact on income but not on costs. Where falling rolls protection is available now it is based on the expectation that it is a short-term fix. This needs to change. 

Distribution versus sufficiency 

It remains important to avoid conflating the debates concerning distribution and sufficiency but the fact that by 2025 funding for education will not have experienced any growth, in real terms, for 15 years does not help. The trends highlighted in recent Institute for Fiscal Studies reports (bit.ly/3JTIKYK) confirm our fears that the increasing risk to school budgets in future years pretty much puts paid to any chance of levelling up aspirations being achievable. 

We will continue to work on an equitable distribution methodology, but it will never deliver if there isn’t enough money to go round. 

Julia Harnden
ASCL Funding Specialist
@julia_harnden

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