Core School Budget Allocations

(Urgent Question): To ask the Secretary of State for Education if she will make a statement on the 2023-2024 core school budget allocations.

As the Government confirmed in a written ministerial statement yesterday, the Department for Education has corrected an error in the notional allocations of the schools national funding formula for 2024-2025. Those allocations were originally published and notified to the House on 17 July 2023. However, the Department has subsequently uncovered an error made by officials during the initial calculations of the national funding formula. Specifically, there was an error processing forecast pupil numbers, which meant that the overall cost of the core schools budget for 2024-25 would be 0.62% greater than allocated. The Department therefore issued new national funding formula allocations on 6 October to rectify that error as quickly as possible.

The permanent secretary has apologised for the error in writing to both the Chair of the Education Committee and the Secretary of State. The Secretary of State has instructed the permanent secretary to conduct a formal review of the quality assurance process surrounding the calculation and quality assurance of the NFF, with external and independent scrutiny. Peter Wyman CBE, the chair of the Institute of Charted Accountants in England and Wales, will lead the review. Improvements have already been identified to ensure that similar mistakes are not made.

I would like to reassure the House that the error does not affect the overall level of school funding, which remains at £59.6 billion for 2024-25. The Government continue to deliver, in full, the core schools budget, which includes funding for mainstream schools and for high needs. As I said, it will remain at £59.6 billion in 2024-25—its highest ever level in real terms and, of course, in cash terms. That is a percentage increase of 3.2% compared with the current year of 2023-24. Through the schools national funding formula, 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, 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 a dedicated schools grant in December, or on when schools will receive their final allocations for 2024-25. The 2024-25 high needs national funding formula allocations, which fund provisions for children with complex special educational needs and disabilities, are also unaffected by the error, as are other funding streams outside the NFF, including the teachers’ pay additional grant announced in the summer.

I also 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. The Government 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.

Order. The Minister has taken three, nearly four, minutes. I hope that he is coming to the end of his remarks.

This is my final sentence, Mr Speaker.

The Department is working closely with school stakeholders, including unions, to communicate this change and support schools and local authorities.

Thank you for granting this urgent question, Mr Speaker. Since the House returned from the summer recess, Ministers have been forced to come here twice, first to explain how this Government left school buildings in such a parlous state that many are now at risk of collapse, and now to explain that the Conservatives are taking £370 million out of schools’ budget allocations for next year. It is shambolic, it is chaotic, and our children deserve a lot better. I am glad that Ministers have listened to Labour’s call for an independent investigation, but what is the timeline for this review? How will the review be reported to the House, and how will Members have a chance to scrutinise its findings?

We need to know much more, too. We need to know why, when the mistake was first identified in September, it was not until after the Conservative party conference in October that headteachers were finally notified. What support will schools now receive to ensure that children’s education does not suffer as a result of Conservative incompetence? Rather than blaming officials, will the Secretary of State—wherever she is today—finally take some responsibility?

We all know that mistakes happen, but this is not a one-off; this is part of a much bigger pattern of Conservative mismanagement right across the Department and right across Government for 13 long years, and it is our children who are paying the price. It is Conservative mismanagement that brought us the RAAC—reinforced autoclaved aerated concrete—crisis in our schools, that kept children at home as Ministers failed to resolve industrial action for months on end, and that is now seeing record numbers of teachers leaving the profession, attainment gaps widening and standards falling. It will fall to the next Labour Government to reset the relationship between Government, families and schools, to show once again that it is Labour that is the party of high and rising standards in our schools.

The hon. Lady refers to RAAC. We took the only decision that any responsible Government would take when the evidence changed on RAAC in school buildings that surveyors had previously assessed as not in a critical condition and we discovered it was not safe for pupils to stay in those schools. There are 174 schools so far confirmed with RAAC, which we have published details of, and we are taking urgent action to make sure that no child or member of staff in our school buildings will be at risk from this reinforced autoclaved aerated concrete—which, by the way, has been around through successive Administrations, both Labour and Conservative, since the 1950s and 1960s.

The hon. Lady refers to £370 million being taken out of the school budget. No money has been taken out of the school budget. It is £59.6 billion next year, and it will remain at £59.6 billion. What would be irresponsible would be to increase funding for schools by 0.62% solely as a result of an error by officials. That is not how Government spending systems work. It has to go through the proper value for money procedures, and that is how we always conduct our allocation of taxpayers’ money.

The hon. Lady talks about standards in schools. We are rising in the international tables. We are fourth in the world for the reading ability of nine-year-olds, according to the recent progress in international reading literacy study, or PIRLS, of pupils of that age. We are rising in TIMSS, the trends in mathematics and science study, and we are rising in PISA, the programme for international student assessment. That is in direct contrast with what happened under the last Labour Government, when we were falling in those PISA tables.

We come to the Chair of the Select Committee.

I am grateful for the apology and the letter that the Select Committee received on this issue, which we have published today. Clearly, it is deeply unfortunate that this error took place. It is a result of a complex and very difficult to understand funding system that provides schools with a lack of transparency as to how their funding works in the long run.

We were elected on a manifesto to deliver a fair national funding formula. There were plans in place to legislate for the direct funding of schools. While I welcome my right hon. Friend’s confirmation that this does not in any way affect the high needs block or take money out of the overall school budget, can he update the House on plans to deliver that direct funding formula, which, along with multi-year funding settlements, the Select Committee and the sector have been calling for over many years?

Yes, it is unfortunate, for which officials and Ministers have apologised. It is frustrating, particularly for local authorities that have to conduct their calculations—it was an error based on the coding of the pupil numbers.

My hon. Friend mentioned moving to the direct funding formula. That is the intention of the Government, and the latest edition of the national funding formula and high needs technical briefing does say that we want ultimately to get to direct funding. Many local authorities are moving their local funding formula ever closer to the approach taken in the national funding formula.

I saw a tweet to the Minister earlier this morning saying that one man’s error is another man’s total cock-up—I do not know whether that is technical language, Mr Speaker. The fact of the matter is that he is the longest-serving Minister in any Department in any Government for many years, and on his watch we have seen the demoralisation of the education sector in our country, with good people leaving. It is the Gibb factor. Why does he not resign and talk to people?

If I may say so, Mr Speaker, that was an extraordinary outburst. Today, we have the highest number of teachers in the profession—some 468,000—which is, by the way, 27,000 more than when we came to office in 2010. In Labour-run Wales, we are not seeing that rise in the number of teachers.

Naturally, this error is very disappointing, but I welcome that the Department has rectified it speedily. What steps is my right hon. Friend taking to work with school stakeholders to communicate the change and to support schools and local authorities?

My right hon. Friend is absolutely right: it was unfortunate. As a Minister, when officials gather outside my office to tell me great news about an error that has been made, my instinct is always to find out what the error is and rectify it as quickly as possible. That took about four weeks, compared with the normal six weeks to calculate the NFF, and we then published the figures as rapidly as possible. That is the approach that the Department and I have taken.

Earlier this year, the Sutton Trust reported that half of school leaders said that they had already been forced to cut back on trips and outings. That includes cultural trips to concerts and plays, which often have a profound effect on young people who would not otherwise be able to attend those events. The average secondary school is now being told that it will have around £58,000 less to spend than was announced in July—whatever the Minister says, those schools will have planned on the basis of that money. I am concerned that even fewer young people will now be able to access the benefits of cultural trips. What is the Minister doing to make sure that young people in state-funded schools still have access to cultural experiences that enrich their education?

The figures published in July were indicative figures. They are used by local authorities. Once the October census comes out with the pupil numbers, they then apply their local formula to those figures. That is the allocation that schools use for their budgeting, and that happens around December.

Over the period between 2021-22 and 2024-25, school funding has increased by 20%, so there has been a very significant increase. I agree with the hon. Member about the importance of cultural activities in schools, which is why we have a cultural education plan that is being worked on at the moment.

One reason why this Minister has been in his post so long is that successive Prime Ministers have judged him to be rather good at his job. For the benefit of the House, can he confirm that the civil servants who discovered the mistake made it known to Ministers at the first possible opportunity, and that Ministers made it known to the public at the first possible opportunity? Does that not reflect credit on our parliamentary democratic system?

I am grateful to my right hon. Friend for his kind comments. He is absolutely right: as soon as we knew about the error, I wanted to make sure that we were doing everything we could to rectify it and find a solution to the problem that officials and the Department had caused. That was my approach, and that is why we recalculated the whole of the national funding formula notional allocations as soon as we could and published that detail on 6 October.