Catherine McKinnell

It is a pleasure to serve under you in the Chair, Ms Butler. I congratulate the hon. Member for Tewkesbury (Cameron Thomas) on securing this debate on the dedicated schools grant, and on the important speech that he gave on such an important subject. Getting this right is a key part of achieving the Labour Government’s aim of breaking down the barriers to opportunity for every child and making sure that the link between background and success is truly broken. That is why we are putting education back at the centre of national life again, and why we have prioritised education funding by increasing the overall core schools budget by £3.2 billion in 2025-26, taking the overall core schools budget to £64.8 billion this year. Like many Members, I regularly visit schools in my constituency. I know that individual schools face different challenges when it comes to their budgets. The unfunded spending commitments that this Government inherited mean that we have to take tough decisions to restore the public finances, but I am proud that against that backdrop we are putting the money where our mouth is and committing more funding to enable every child to achieve and thrive. The Department for Education will continue to support teachers and school leaders to deliver on that as much as we can. We are ensuring that schools are supported to ensure that they spend their money as efficiently as they can while delivering the best possible life chances to as many children as they can. That means supporting them with best practice for budgeting and financial planning, support and mentoring for school business professionals, and giving hands-on support through school resource management advisers who provide independent and tailored advice to schools on how they can best maximise every pound that they spend. More widely, the national funding formula distributes funding for mainstream schools, as we have discussed already, via the dedicated schools grant. It is based on pupils’ needs and characteristics, so that we can direct the funding to where it is needed. In 2025-26, £5.1 billion of the school national funding formula has been allocated through deprivation factors, with £8.6 billion allocated for additional needs overall. That is 17.8% of total core funding through the formula, so £1 in every £5 goes on those factors, which helps schools in their vital work to close attainment gaps. I have listened very carefully to the debate, but I must reiterate that the purpose of the national funding formula—I think hon. Members appreciate this—is not to give every pupil the same level of funding per pupil. It is right that pupils who need additional investment attract the additional funding that helps schools respond to and meet their needs. That means that schools in more expensive areas, such as London, attract higher funding per pupil to reflect the higher costs of being at school in London, because of the higher costs that are faced. However, I recognise that schools have historically struggled with chaos and short-termism in school funding. When we came into government, because of the timing of the general election, in 2025-26 we wanted to give schools certainty about their funding and to minimise disruption for them. Consequently, we prioritised keeping the same funding formula, so that schools had certainty about it, and we also prioritised the speed of allocating that funding over making any changes to the national funding formula that might have been made—but I can confirm that for 2026-27 we are reviewing the national funding formula. I have listened very carefully to what has been said today, because we recognise the importance of establishing a fair funding system that directs funding to where it is most needed.