Implementing the direct national funding formula

We asked for views on our proposals relating to the implementation of the “direct” national funding formula (NFF) for schools. The direct NFF, when implemented will mean that the funding for individual schools will be set by a single, national formula – rather than each local authority having its own local formula to allocate funding for individual schools.

The consultation set out proposals on the detail of how the direct NFF will operate, as well changes to make the current funding system fairer and more consistent, as part of the transition towards the direct NFF.

We received 196 responses to the consultation. Our proposals received strong support across the stakeholders who responded (including schools, academy trusts, school forums and unions).

You can read the Government’s response to the consultation in full on the Implementing the Direct National Funding Formula Government consultation response (publishing.service.gov.uk) webpage. As well as confirmation of our plans for the implementation of the direct NFF, the Government’s response also confirms that the Department will implement two reforms to the schools NFF from 2024-25.:

• First, we are reforming funding for schools which operate across more than one site through a national formulaic approach to split sites within the national funding formula. This will ensure that funding is allocated consistently and fairly across England, and that all eligible schools attract funding towards the additional costs they face. This replaces the current system whereby only some of these schools receive additional funding, depending on local funding arrangements.

• Secondly, we are making funding for schools which see significant increases in their pupil numbers more consistent across the country, by setting minimum levels of additional funding that every eligible school will receive. We are also introducing some changes to local authorities’ allocation of funding for schools which have significant declines in pupil numbers – with a requirement that local authorities must use their School Capacity Survey (SCAP) data to assess whether school places will be required in the next three to five years, replacing the current requirement to use local planning assessments. This will ensure that allocations of “falling rolls” funding are based on a consistent measure of forecasting future school places, supporting the policy objective of targeting this support to the schools where places will be needed in future.