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) distributes core funding for mainstream schools. It accounts for the particular challenges faced by small rural schools through the sparsity factor. This recognises that some schools are necessarily small because they are remote and do not have the same opportunities to grow or make efficiency savings as other schools.

In the 2025/26 financial year, primary schools eligible for sparsity funding attract up to £57,400, and all other schools eligible for sparsity funding attract up to £83,400.

Small schools have also benefited from the increase to core factors in the NFF in the 2025/26 financial year, including the NFF lump sum set at £145,100. The lump sum provides a fixed amount of funding that is unrelated to pupil-led factors. It is therefore particularly beneficial to small schools that are more reliant on an element of funding that is not driven by pupil numbers.