Financing for equity in primary and secondary education
WALES
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Wales, education is overseen by the Department for Education and Skills within the Welsh Government. Local Education Authorities (LEAs) hold the strategic responsibility for statutory education functions within their areas.
Public expenditure from the UK central government is allocated to Wales, Scotland, and Northern Ireland using the Barnett formula, which is based on population rather than need. The Welsh Government then distributes funding to local authorities, which provide the majority of financing for schools’ core budgets. See here for an overview of the education financial flow, noting the changes outlined in Section 1.
1. Education resources to subnational governments
Revenue Support Grant
The majority of funding to local authorities in Wales is provided through the Revenue Support Grant (RSG), distributed by the Welsh Government using a needs-based formula that is regularly reviewed. Local authorities have discretion over spending, but education services must meet required standards. Allocations are determined through the Local Government Funding Formula (LGFF), which accounts for population as well as the physical, economic, and social characteristics of each area. The LGFF uses the Standard Spending Assessment (SSA), a notional estimate of what each council requires to provide a standard level of service. Final calculations reflect the differing costs of service delivery across areas due to demographic, geographic, and socio-economic factors.
Local Authority Education Grant
The Local Authority Education Grant for pre-16 education includes funding for school standards and equity. The school standards element supports improvements in educational outcomes and is distributed via a national formula updated annually. In 2025–26, each learner from nursery to Year 11 receives GBP 89.64, with rural learners allocated twice this amount. Special schools receive an additional GBP 179.28 per learner and a lump sum of GBP 10,500. Year 10 and Year 11 learners receive an extra GBP 193.11. Historically, distribution has also considered socio-economic indicators such as the Welsh Index for Multiple Deprivation and eligibility for free school meals. Ninety-two per cent of the funding is directed to schools, with the remainder supporting early education and local authority initiatives to raise standards.
The equity element supports educational fairness and includes several programmes. The Pupil Development Grant (PDG) provides GBP 1,150 per learner eligible for free school meals in 2025–26. Additional allocations support children looked after by local authorities, pupils with Additional Learning Needs (ALN), Minority Ethnic and Gypsy, Roma, and Traveller learners, home-educated learners, and community-focused schools.
Education Reform and Cymraeg 2050
Funding for reform supports initiatives such as the Curriculum for Wales, ALN provision, and whole-school approaches to mental health and wellbeing. The Cymraeg 2050 element supports the Welsh Government’s strategy to reach one million Welsh speakers by 2050, with education playing a central role, including increasing the proportion of learners receiving Welsh-medium education.
School Improvement Arrangements
Recent changes to school improvement arrangements in Wales mean that Regional Consortia are either ending or transforming into organisations focused solely on professional learning. They will no longer hold responsibilities for school funding, as detailed in the written statement of 3 June 2025.
2. Education resources to schools
Individual Schools Budget
Local authorities allocate funding to schools through the Individual Schools Budget (ISB). Under the 2010 School Funding (Wales) Regulations, the ISB must be distributed to schools maintained by the authority as budget shares using a locally determined funding formula. At least 70% of the funding is based on pupil numbers, with local authorities able to adjust for factors such as age, special educational needs, and Welsh-medium education. In 2023–24, delegation rates ranged from 74.4% to 87.2%. The remaining 30% is allocated at the discretion of the local authority, covering elements such as building maintenance, cleaning, school milk and meals, and teacher salaries.
The 2010 regulations combine and replace earlier regulations under the School Standards and Framework Act 1998, including formula-based school funding with deprivation indicators (1999), the LA Budget, Schools Budget and Individual Schools Budget (Wales) Regulations 2003, Schools Budget Shares (Wales) Regulations 2004, and the Education (LA Financial Schemes) (Wales) Regulations 2004.
The Scheme for Financing Schools is an agreement between local authorities and the schools in their area. It establishes the financial relationship between the authority and schools and sets out requirements relating to financial management and associated matters.
Pupil Development Grant
The Pupil Development Grant (PDG) is part of the Local Authority Education Grant (Section 1) and is distributed by local authorities to schools and educational settings to support learners eligible for free school meals and other policy objectives.
3. Education resources to students and families
The School Essentials Grant provides financial support to low-income families to help cover school-related costs. Families can apply for GBP 125 per learner, with GBP 200 available for those entering Year 7. Schools also receive funding under this programme. The grant can be claimed once per child per school year and is intended to cover expenses such as school uniforms, classroom essentials, and school activities.
Education Maintenance Allowance
The Education Maintenance Allowance (EMA) is a weekly payment of GBP 40 for eligible 16 to 18-year-olds. It supports pupils from low-income families in affording further education, whether they are undertaking academic or vocational courses, provided they are residents.
4. Social policies and family support programmes
The following programmes apply to England, Wales and Northern Ireland and are funded by the central UK government.
Child Benefit is a universal programme providing financial support to families with children under 16, or up to 20 if they remain in approved education or training. Introduced through the 1975 Child Benefit Bill, it combined the former family allowance and child tax allowance. Families receive a monthly payment and national insurance credits: GBP 26.05 per week for the eldest or only child, and GBP 17.25 for each additional child.
Families with a parent earning over GBP 60,000 in the 2024–25 tax year may be liable for the High-Income Child Benefit Charge. This threshold is adjusted annually. Families can choose to receive Child Benefit and pay any applicable tax charges or opt out of the payments.
The Disability Living Allowance (DLA) helps families cover extra costs of caring for a child with a disability. Payments vary according to the level of care needed. The care component is paid at three weekly rates: GBP 29.20 for children needing attention for a significant part of the day, GBP 73.90 for those requiring frequent attention or continual supervision during the day, or prolonged/repeated attention at night, and GBP 110.40 for children needing both frequent attention during the day and prolonged or repeated attention at night.
The mobility component has two rates. Children who can walk but need guidance receive GBP 29.20 per week, while children who cannot walk or have a severe disability receive GBP 77.05 per week.
5. School meal programmes
Universal Primary Free School Meals
In Wales, all primary school children receive free school meals through the Universal Primary Free School Meals Programme.
The free breakfast initiative, initially introduced in 2004 and made law in 2013, provides breakfasts in primary schools. Local authorities administer the programme through a dedicated grant.
Free School Meals in Secondary Schools
Secondary school pupils may receive Free School Meals (eFSM) if their families receive income-based support. Local authorities are responsible for both providing the meals and assessing eligibility.
The Healthy Eating in Schools (Nutritional Standards and Requirements) (Wales) Regulations 2013 govern the food and drink provided in maintained schools.
This profile was reviewed by national experts, Professor Andrew James Davies, Swansea University and Dr. David Egan, Professor of Education, Cardiff Metropolitan University.
