Minister of State for School Standards (): Today we are
confirming provisional funding allocations for 2025-26 through
the schools, high needs and central school services national
funding formulae (NFFs). Overall, core schools funding (including
funding for both mainstream schools and high needs) is increasing
by £2.3bn in 2025-26 compared to the previous year.
Within this £2.3bn, high needs funding is increasing by a further
£1 billion in 2025-26 to help local authorities and schools with
the increasing costs of supporting children and young people with
SEND. The majority of this increase will be allocated through the
high needs NFF. Through this formula, local authorities will
receive at least a 7% increase per head of their population aged
2-18, compared to their 2024-25 allocations, with some
authorities seeing gains of up to 10%.
The overall high needs funding increase of £1.0 billion includes
over £90 million to increase the high needs element of the
2024-25 core schools budget grant (CSBG) to a full-year
equivalent of over £230 million. This will be incorporated with
the other teachers' pay and pensions grants into a single CSBG
(totalling £480 million) for special schools and alternative
provision in 2025-26.
Funding for mainstream schools through the schools NFF is
increasing by 2.23% per pupil compared to 2024-25. This includes
a 1.28% increase to ensure that the 2024 teachers and support
staff pay awards continue to be fully funded at national level in
2025-26. The 2025-26 schools NFF includes funding for pay and
pensions costs that was previously allocated outside of the NFF,
but is now being rolled into the formula – the 2024 to 2025
Teachers' Pay Additional grant (TPAG), Teachers' Pension Employer
Contribution grant (TPECG) and Core Schools Budget grant (CSBG).
This ensures that this additional funding forms an ongoing part
of schools' core budgets.
On top of this rolled-in funding, the core factor values in the
schools NFF are rising, to increase the funding available to
schools. Through the minimum per pupil funding levels, every
primary school will attract at least £4,955 per pupil, and every
secondary school at least £6,465 per pupil.
Central school services funding funds local authorities for the
ongoing responsibilities they continue to have for all schools,
and some historic commitments that local authorities face. The
total provisional funding for ongoing responsibilities is £342
million in 2025-26, which includes £4 million for additional
costs of copyright licences for schools.
Across the schools, high needs, and central services NFFs, we
have kept the structure of the formulae largely unchanged from
2024-25. This is to minimise disruption for schools and local
authorities due to the shorter than usual timescales for the
2025-26 funding cycle, given the timing of the general election.
For 2026-27 and beyond, we will consider changes to various
funding formulae, recognising the importance of a fair funding
system that directs funding where it is needed.
Updated allocations of schools, high needs and central schools
services funding for 2025-26 will be published to the usual
timescale in December through the Dedicated Schools Grant
allocations, taking account of the latest pupil data at that
point.
