School Budgets (Hansard, 18 July 2003)

§ Mr. Miliband

The Department does not collect information on the distribution of teaching salaries by school or by local education authority. It is therefore not possible for us to calculate the additional cost of the increase in National Insurance contributions for each local education authority. However, nationally, the increase in additional resources provided for education of £2.7 billion more than match the pressures faced by schools and local education authorities.

In introducing the new funding system in 2003–04, our aim has been to produce the best possible match between the distribution of funds and the differing circumstances and needs of local education authorities. The formula provides the same funding for all comparable pupils right across the country. So the new system consists of a basic amount per pupil—which is the same everywhere—with top-ups for pupils with additional educational needs (again the same per pupil everywhere), and for area costs for salaries, recruitment and retention. Authorities which have more deprived pupils and/or receive extra funding to take account of the high costs of recruiting and retaining staff in their area, receive a higher level of funding overall than those which have comparatively low levels of deprivation and/ or do not receive additional funding for area costs. But all authorities received an increase of at least 3.2 per cent. per pupil after taking account of the changes to teachers' pension contributions and the additional £28 million grant provided to authorities ensured a minimum effective increase per pupil of 3.2 per cent. per pupil taking account of changes to the Standards Fund. Local education authorities are responsible for deciding the amount of funding available for the Schools Budget.