Last year, the Government outlined a New Funding Formula (NFF) that will see 152 local authority formulas replaced by a single national level formula.
What is changing?
Due to be introduced in 2018-2019, the NFF is set to ensure that schools in different areas are treated equally. It’s been stated that some information for local authorities is nearly 15 years out of date, with others deeming the distribution of money "unfair and opaque".
As the largest change for over 25 years’, the Institute for Fiscal Studies (IFS) estimated that 10,740 schools would see increases, whereas 9,128 schools are likely to see their funding fall.
A strain on school budgets
Even though government protections imply that ‘no school can see its budgets fall by more than 3%’, many schools are still concerned. Additional areas of funding have seen a significant adjustment recently; such as the Department of Education declaring they will not be increasing funding per pupil in line with inflation – an 8% real-term cut between now and 2019-20.
Chris Belfield, co-author of the IFS report said: “Somewhat inevitably, this reform creates winner and losers, and it comes at a time of severe pressure on school budgets, as we are currently in the tightest four-year period for per-pupil-spending in English schools since at least the early 1980s.”
“The government has put in place protections to help smooth the transition process up to 2019–20. However, there is significant uncertainty about what will happen after 2019–20.”
Making money work for schools
As an established finance provider to the education sector, we strive to support schools to achieve improvement through investment.
An LDF Operating Lease allows schools to spread the cost of essential equipment, such as, computers, playground equipment and audio visual, over a 1 to 3 year term to make their budgets go further.