{"id":191208,"date":"2023-10-06T17:19:21","date_gmt":"2023-10-06T16:19:21","guid":{"rendered":"https:\/\/schoolsweek.co.uk\/?p=191208"},"modified":"2023-10-09T16:03:08","modified_gmt":"2023-10-09T15:03:08","slug":"dfe-made-370m-error-in-school-funding-calculations","status":"publish","type":"post","link":"https:\/\/schoolsweek.co.uk\/dfe-made-370m-error-in-school-funding-calculations\/","title":{"rendered":"School budget \u2018chaos\u2019 after DfE\u2019s \u00a3370m funding gaffe"},"content":{"rendered":"\n<p>An investigation is underway into how Department for Education officials made an error in school funding allocations for next year that means schools will now have \u00a3370 million less than promised. <\/p>\n\n\n\n<p>Permanent secretary Susan Acland-Hood has today apologised, and education secretary Gillian Keegan has ordered a review of DfE quality assurance processes after identifying an error forecasting pupil numbers.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>School leaders will be rightly angry that basic accounting errors may force them to rethink already tight budgets<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p><em>Schools Week<\/em> understands the error was identified in September. It was not announced until around 5pm on Friday &#8211; two days after the Conservative party conference finished. <\/p>\n\n\n\n<p>Left unaddressed, the error would mean the cost of the core schools budget would be 0.62 per cent greater than allocated in 2024-25. The budget is due to be \u00a359.6 billion next year, so an error of that size would equal around \u00a3370 million.<\/p>\n\n\n\n<p>Schools have not received funding allocations for 2024-25 yet, so addressing the error will not result in any clawback. Their allocations would also be based on pupil numbers in the October school census, conducted yesterday.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Funding rise revised down <\/h3>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2023\/05\/Paul-Whiteman-4-feat.jpg\" alt=\"Paul Whiteman\" class=\"wp-image-181548\" style=\"aspect-ratio:1;object-fit:cover;width:200px\" width=\"200\" srcset=\"https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2023\/05\/Paul-Whiteman-4-feat.jpg 800w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2023\/05\/Paul-Whiteman-4-feat-670x352.jpg 670w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2023\/05\/Paul-Whiteman-4-feat-768x403.jpg 768w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2023\/05\/Paul-Whiteman-4-feat-640x336.jpg 640w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2023\/05\/Paul-Whiteman-4-feat-244x128.jpg 244w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2023\/05\/Paul-Whiteman-4-feat-347x182.jpg 347w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2023\/05\/Paul-Whiteman-4-feat-489x257.jpg 489w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><figcaption class=\"wp-element-caption\">Paul Whiteman<\/figcaption><\/figure>\n\n\n\n<p>However, allocations data published in July is used by schools and councils to give themselves an indicative idea of their future budgets. <\/p>\n\n\n\n<p>New allocations data has been published this evening &#8211; leaving leaders scrambling to redo budgets with less cash than promised.<\/p>\n\n\n\n<p>The DfE told schools in July that funding through the mainstream schools national funding formula &#8220;is increasing by 2.7 per cent per pupil in 2024-25&#8221;.<\/p>\n\n\n\n<p>Today&#8217;s updated guidance states the rise will be just 1.9 per cent.<\/p>\n\n\n\n<p>The government\u2019s prediction for the minimum per-pupil funding for secondary schools has been revised down by \u00a355. At primary level it\u2019s down \u00a345.<\/p>\n\n\n\n<p>Based on these figures, the average secondary school would be \u00a357,970 worse-off than predicted in July, and the average primary would be \u00a312,420 worse-off.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&#8216;Chaos at the heart of government&#8217;<\/h3>\n\n\n\n<p>Paul Whiteman, general secretary of the NAHT school leaders\u2019 union, said the admission \u201cspeaks volumes about the chaos at the heart of government\u201d.<\/p>\n\n\n\n<p>\u201cSchool leaders will be rightly angry that basic accounting errors may force them to rethink already tight budgets as a result of the erroneous figures they were provided. Many may now have to revisit crucial decisions around staffing or support for pupils as budgets are reduced.\u201d<\/p>\n\n\n\n<p>Geoff Barton, of the ASCL leaders\u2019 union, said it was an \u201cextremely unfortunate and frustrating error\u201d.<\/p>\n\n\n\n<p>\u201cEven though schools have not received their 2024-25 funding, it is likely that trusts and local authorities will have used the incorrect figures in their budget planning and will now need to revise those budgets with the corrected figures.<\/p>\n\n\n\n<p>\u201cThis is the last thing they need on top of all the other demands on their time.\u201d<\/p>\n\n\n\n<p>In a <a href=\"https:\/\/assets.publishing.service.gov.uk\/media\/651fd71f7309a10014b0a9b3\/Perm_Sec_letter_to_ESC_Chair_-_6_Oct.pdf\" target=\"_blank\" rel=\"noopener\" title=\"\">letter to education select committee chair Robin Walker<\/a>, Acland-Hood said: &#8220;I apologise for this error. <\/p>\n\n\n\n<p>&#8220;The secretary of state has asked me to conduct a formal review of the quality assurance process surrounding the calculation of <a href=\"https:\/\/schoolsweek.co.uk\/tag\/national-funding-formula\/\" target=\"_blank\" rel=\"noopener\" title=\"\">the NFF<\/a>, with independent scrutiny. <\/p>\n\n\n\n<p>&#8220;Improvements have already been identified to ensure similar mistakes are not repeated in the future.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Error &#8216;does not affect total spend&#8217; on schools<\/h3>\n\n\n\n<p>The recalculation of funding &#8220;does not affect the total amount we plan to spend in the<br>core schools dudget in 2024-25 &#8211; which includes funding for mainstream schools,<br>and funding for high needs&#8221;. <\/p>\n\n\n\n<p>&#8220;It will remain at \u00a359.6bn in 2024-25, the highest ever in real terms per pupil.&#8221;<\/p>\n\n\n\n<p>Acland-Hood said the correction of this error &#8220;does not mean adjusting any funding that schools have already received&#8221;. <\/p>\n\n\n\n<p>&#8220;Likewise, the error will not impact on the publication of the Dedicated Schools Grant (DSG) in December, or when schools will receive their final allocations for 2024-25.<\/p>\n\n\n\n<p>It is understood the mistake was down to pupil numbers for a council that recently split into two not being counted. Just the pupil numbers for the original council, and not the new one, were factored into funding calculations.<\/p>\n\n\n\n<p>&#8220;Nevertheless, we recognise that the correction of this error will be difficult for local<br>authorities and frustrating for some school leaders, which is why the Department has<br>worked as quickly as possible to rectify the error,&#8221; Acland-Hood added.<\/p>\n\n\n\n<p>&#8220;We will work closely with school stakeholders, including unions, to communicate this change and support schools and local authorities.&#8221;<\/p>\n\n\n\n<p>But Daniel Kebede, general secretary of the National Education Union, said \u201cat the very minimum\u201d, Keegan \u201cmust honour the funding schools were told they would receive in July. <\/p>\n\n\n\n<p>\u201cHead teachers have planned for that money and budgets are already pared to the bone.\u201d<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Top boss apologises and education secretary orders investigation after error leaves many schools with tens of thousands of pounds less than expected <\/p>\n","protected":false},"author":70,"featured_media":189303,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[28,239],"post-theme":[2425],"class_list":["post-191208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-dfe","tag-education-policy","post-theme-school-funding"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO Pro 4.9.6.2 - aioseo.com -->\n\t<meta name=\"description\" content=\"The Department for Education has admitted an error in school funding allocations for next year that would have inflated the core schools budget by \u00a3370 million.\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Freddie 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