Minister of State for Schools (): Today I am confirming that the
Department for Education has corrected an error in the notional
allocations of the schools National Funding Formula (NFF) for
2024-25.
These allocations were originally published, and notified to the
House, on 17th July 2023. However, the Department has
subsequently uncovered an error made by officials during the
initial calculations of the NFF. Specifically, there was an error
processing forecast pupil numbers, which meant that the overall
cost of the Core Schools Budget in 2024-25 would be 0.62% greater
than allocated. The Department therefore issued new NFF
allocations on 6th October 2023 to correct that error.
The Department rectified this error as quickly as possible and –
because the republication of the NFF allocations took place
during parliamentary recess – I am now providing this statement
at the earliest opportunity.
The Department has apologised for this error in writing to both
the Chair of the Education Select Committee and the Secretary of
State. The Education Secretary has asked the Permanent Secretary
to conduct a formal review of the quality assurance process
surrounding the calculation of the NFF, with external and
independent scrutiny. Peter Wyman CBE will lead this review.
Improvements have already been identified to ensure that similar
mistakes are not repeated.
The Government is continuing to deliver, in full, the Core
Schools Budget, which includes funding for mainstream schools and
funding for high needs. It will remain at £59.6bn in 2024-25, the
highest ever in history in real terms. This is a percentage
increase of 3.2% compared to 2023-24.
Through the schools NFF, average funding is £5,300 per primary
school pupil and £6,830 per secondary school pupil in 2024-25, up
from £5,200 and £6,720 respectively in 2023-24.
Schools have not yet received their 2024-25 funding and so the
correction of this error does not mean adjusting any funding that
schools have already received. Likewise, the error will not
impact on the publication of the Dedicated Schools Grant (DSG) in
December, or when schools will receive their final allocations
for 2024-25. The 2024-25 high needs NFF allocations (which fund
provision for children with complex SEND) are also unaffected by
this error, as are other funding streams outside the NFF,
including the Teachers’ Pay Additional Grant (TPAG) announced in
the summer.
I would also like to clarify that the recalculation of the NFF
for 2024-25 does not affect the affordability of the 2023
teachers’ pay award. There has been no change to the funding that
was promised as part of the pay settlement in July, and which the
unions agreed meant that the pay award is properly funded.
I recognise that the correction of the NFF error will be
difficult for local authorities and frustrating for some school
leaders, which is why the Department has rectified the error as
quickly as possible. The Department is working closely with
school stakeholders, including unions, to communicate this change
and support schools and local authorities.
The following key documents that have been updated and replaced
with new versions on 6th October 2023 are:
- The policy document for the 2024-25 NFF, which is published at:
National funding formula for
schools and high needs - GOV.UK (www.gov.uk)(opens in a new
tab)
- The “national funding formula: summary table”, and the “impact
of the schools NFF” allocation tables, which are published at:
National funding formula tables
for schools and high needs: 2024 to 2025 - GOV.UK
(www.gov.uk)
