To ask the Secretary of State for Education, pursuant to the Answer of 28 February 2017 to Question 64973, whether the Schools Funding Formula reflects the higher labour market costs of attracting labour to hard to access areas.
The second stage consultation on the national funding formula for schools confirms that we will use a ‘hybrid’ area cost adjustment to reflect the variation in labour market costs. The hybrid methodology takes into account both general labour market trends and the particular salary variations in the teaching profession. This methodology received strong support in the first stage consultation.
More information about how the area cost adjustment is calculated can be found in the technical note, at: https://consult.education.gov.uk/funding-policy-unit/schools-national-funding-formula2/.