Schools: Rural Areas

The government recognises the essential role that small schools play in their communities, many of which are in rural areas. The schools national funding formula (NFF) accounts for the particular challenges faced by small schools in rural areas through the lump sum and sparsity factor.

In the 2025/26 financial year, the sparsity factor provides eligible primary schools up to £57,400, and all other eligible schools up to £83,400. In addition to this, all small schools have benefited from the increase to core factors in the NFF in 2025/26, including the NFF lump sum set at £145,100. This provides a fixed amount of funding that is particularly beneficial to small schools, as it is not affected by pupil numbers.

This funding recognises the particular financial challenges small and remote schools can face, such as fewer opportunities to find efficiencies, the significant role they play in the rural communities they serve, and that without such funding, their pupils could face long travel distances to attend school.