Schools: Finance

Department for Education written question – answered on 27th April 2016.

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Photo of Nick Brown Nick Brown Chair, Finance Committee (Commons), Chair, Finance Committee (Commons)

To ask the Secretary of State for Education, how deprivation factors are taken into account in school funding formulae.

Photo of Sam Gyimah Sam Gyimah The Parliamentary Under-Secretary of State for Education

In current funding arrangements, each local authority devises a local funding formula through which they distribute funding to schools in their locality. The formula must include a deprivation factor, and local authorities have the flexibility to use a pupil-based measure (eligibility for free school meals (FSM)), an area-based measure (the Income Deprivation Affecting Children Index, which is known as IDACI) or both in order to identify pupils eligible for this funding.

We are committed to introducing a national funding formula so that schools’ funding is matched fairly and consistently to need. In our recent consultation on the principles and building blocks of a national funding formula, which closed on 17 April, we proposed to include a deprivation factor which uses a combination of the FSM and IDACI measures to identify eligible pupils. We are now reviewing all responses and will set out the detail of the formula in a second consultation, to be published later this year.

Further detail on our proposals for a deprivation factor in a national funding formula can be found on page 19 in our consultation document:

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