Schools: Finance

School funding will increase by £4.2 billion over the Spending Review period, meaning core school funding will total £65.9 billion by 2028/29. This additional funding will provide an above real terms per pupil increase on the core schools budget.

The majority of school funding is allocated on a per pupil basis through the National Funding Formula (NFF) on a lagged funding system, where schools are funded on the basis of their pupil numbers in the previous October census. This arrangement helps to give schools more certainty over funding levels and is particularly important in giving individual schools time to adjust to demographic change before experiencing the funding impact.

Local authorities are also allocated funding through the NFF for growth and falling rolls, which they can use to support schools experiencing significant growth in pupil numbers, to support schools facing a temporary drop in pupil numbers, or to help meet the revenue costs of removing or repurposing surplus places.