Reforming how local authority school improvement functions are funded

We asked for views on proposals to reform how local authorities' school improvement functions are funded.

While many responses indicated that they understood the rationale for these proposals, we recognise many also raised concerns. These centred on whether schools and councils would be able to absorb further funding pressures; what would happen if schools forums did not agree to de-delegation for core school improvement activity; and the desire for further clarity on what is considered core school improvement. Others noted the challenging implementation timescales. We address these concerns in our government response.

We recognise that there is concern, particularly from councils and the maintained sector, about removing this additional source of funding. However, one of the key rationales of these proposals is to create greater parity between how school improvement is funded in the maintained and academies sector. Therefore, after careful consideration of the responses, the government intends to proceed with implementing the proposals.  

As such, we will (1) reduce the grant by 50% for the FY 2022-23 and bring it to an end in FY 2023-24 and (2) include provision in Part 7 of Schedule 2 to the School and Early Years Finance (England) Regulations for FY 2022-23 which would allow councils to de-delegate for all improvement expenditure, including all core improvement activities. We will monitor the impact of the changes during the year.