Fair school funding for all: completing our reforms to the National Funding Formula

The Department sought views on moving to a “direct” schools national funding formula (NFF), where the Department would determine funding allocations for schools directly through a single national formula, without adjustment through local authority (LA) funding formulae.

The majority of respondents (59%) were in favour of the Secretary of State allocating funding for all pupil-led and school-led factors as part of the direct NFF. This funding would be allocated directly to schools, without further adjustment by LAs. There also was strong support for our proposals for transitioning towards the direct NFF, by requiring LAs to use each of the NFF factors from 2023-24 and move their local factor values closer to the NFF factor values by 10%.

The Department will implement the direct NFF where all mainstream schools funding would be allocated on the basis of a single national formula, replacing the current system where LAs allocate funding. To get there, the Department will require LAs to use each of the NFF factors, and only NFF factors, and move their factor values at least 10% closer to the NFF in 2023-24.

In spring 2022 will go back to the sector for further views on detailed proposals regarding the direct NFF’s implementation.