Fundamentally, funding is integral to the education system in the UK. It decides the level of support for teachers, resources the school can provide and whether every child, from whatever background, has available high-quality learning. Understanding how school funding works is useful for parents, educators and policymakers in making sense of education priorities for the UK.
How School Funding Works
Funding of schools across the UK varies in the detail between England, Scotland, Wales and Northern Ireland; however, the principles are similar, that is, revenue comes from government budgets, it is then allocated to schools based on the number of pupils, their needs and local priorities.
England
• Under the National Funding Formula (NFF) the funding flows from the Department for Education (DfE).
• Funding is granted to local authorities which then passes the funding to schools, based on:
o The size of the schools (per-pupil funding)
o The needs of the learners (such as low income, English as an additional language, special needs, etc.)
o Even where the school is located (as in, potentially higher costs in London)
• Pupil Premium is also allocated for disadvantaged pupils.
• Academies and free schools receive funding from the DfE directly, not routed through local authorities.
Scotland
• Funding is allocated through local councils, facilitated by a block grant from the Scottish Government.
• Funding is allocated based on poverty, rurality and any elements of the priority educational agenda.
Wales
• The local authorities receive funding from the Welsh government, which local authorities budget for schools.
• Grants for the Pupil Development Grant (PDG) for children from families with lower income.
Northern Ireland
• The source of funding will come through the Department of Education NI via the Common Funding Scheme, which distributes funding according to the school size, pupil numbers and social need.
Reasons why school funding matters
1. Equal Opportunities for All
When funding is fair and equitably distributed all children can benefit from a quality teaching, materials and extracurricular activities, irrespective of their postcode.
2. Taking Care of Teachers
It is important that teachers are paid competitive salaries and have the appropriate support and resourcing in order to do their job. Schools which are not funded adequately cannot recruit and retain high-quality teachers, with an impact on the schools educational experience.
3. Special Educational Needs
Adequate funding allows schools to recruit trained staff, offer learning support to children and develop learning spaces that are inclusive to all.
4. Access to Modern Learning Resources
School funding allows schools access to technology and textbooks that support current and modern learning requirements and digital education.
5. Stability for Communities
When schools are funded adequately and equitably they can provide stability for local communities, and improve workforce preparation and long-term employment outcomes, therefore helping to break the cycle of poverty.
Issues Concerning School Finances
Despite reforms being underway there remain very real school challenges in the world today:
• Increases in energy and true costs of staff without any increase in funding
• The gap for funding not consistent over time and between regions, resulting in inequity
• Pressures on SEND budgets
• Funding as an issue raising funds or asking parents to contribute additional fundraising
The Future of School Funding in the UK
Recent initiatives from the UK government intended to equalise and make funding more transparent using the National Funding Formula. Yet education unions and leaders are still calling for more investment to address the increasing needs of students, particularly as a result of the pandemic.
With discussions still underway in Parliament and devolved administrations, funding for education will continue to be a significant issues shaping education in the UK.
Conclusion
School funding goes beyond the numbers — it’s an investment in the future of the country. By making sure that every school is funded fairly, sustainably, and appropriately, we take care of our children’s growth to fulfill their potential, bolster teachers and unions, and build healthy communities across the country.