Financing for equity in primary and secondary education
ENGLAND
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 England, United Kingdom, primary and secondary education is overseen by the Department for Education (DfE), while local government authorities are responsible for implementing policy at the local level, including the administration of public and state-funded schools.
Education financing in England is governed by the 2025 School and Early Years Finance (England) Regulations. Funds are distributed from the DfE to local authorities, which then allocate resources to schools, although some funding may be provided directly to individual schools. Schools primarily receive funding through two channels: revenue funding, which covers day-to-day operational costs, and capital funding, which supports new facilities and infrastructure improvements.
Total school spending is made up of four main components: funding directly allocated to schools, including special schools and alternative provision settings; local authority spending, which covers costs associated with pupils with Special Educational Needs (SEN), school admissions, transport, and other support services; sixth-form funding, provided to schools for pupils aged 16–19; and funding for pension contributions, which compensates schools for staff pension costs.
OECD (2019) has illustrated the flow of public funding for primary and lower secondary education in England, highlighting the roles of both central and local authorities.
1. Education resources to subnational governments
Dedicated Schools Grant (DSG) and National Funding Formula (NFF)
Local authorities in England receive a block grant from the Department for Education called the Dedicated Schools Grant (DSG). The DSG is divided into four blocks. The Schools Block funds schools on a per-pupil basis and has transitioned into the National Funding Formula (NFF). The Central School Services Block covers local authorities’ statutory duties. The Early Years Block funds early childhood education, while the High Needs Block provides for pupils and students aged 0–24 who require additional support in schools.
The National Funding Formula (NFF), implemented from 2023-24, calculates core school funding with separate formulas for high needs, central services, and early years. For 2025-26, the guaranteed minimum per-pupil funding was set at GBP 4,610 for primary pupils and GBP 5,995 for secondary pupils, with minimum allocations varying by locality. Schools may receive additional ‘top ups’ for factors such as deprivation, children in local care, English as an Additional Language (EAL), and other school-led considerations such as sparsity funding for small or remote schools.
The Area Cost Adjustment (ACA) under the NFF reflects variations in labour market costs across local authorities. The NFF also provides growth funding and falling rolls funding to cover changes in pupil numbers, helping schools meet revenue costs when removing or repurposing surplus places, for example to create SEN provision or early years spaces.
Under the NFF, split sites funding supports schools operating satellite sites separate from the main site. Funding is based on a “basic eligibility” element, which applies if sites are separated by a public road or railway and maintained by the school, and a “distance eligibility” element, starting at 100 metres and increasing linearly to a maximum. The NFF lump sum for basic eligibility is GBP 54,000, with a maximum distance element of GBP 27,000.
2. Education resources to schools
Previously, local authorities were responsible for allocating the Individual Schools Budget (ISB) according to their local schools’ funding formula, while schools also received funding through the Teachers’ Pay Additional Grant (TPAG), Teachers’ Pension Employer Contribution Grant (TPECG 2024), and the Core Schools Budget Grant (CSBG). England has begun to centralise these processes through the National Funding Formula (NFF), and as of 2025-26, these previous grants are now consolidated within the NFF school block allocations, with local authorities expected to gradually align their local formula factor values with the NFF.
Mainstream Schools Additional Grant
The Mainstream Schools Additional Grant, introduced in 2023-24, provides schools with greater flexibility to support pupils. For the 2025-26 school year, this means an additional GBP 143–208 per pupil.
The pupil premium was introduced in 2011 to give schools extra funding to help disadvantaged pupils. The amount of funding is based on the number of disadvantaged pupils in the school. Eligible pupils include those looked after by the local authority and those who are eligible for free school meals (FSM) or have been eligible at any point in the past six years. For 2025-26, funding per pupil is GBP 1,515 for primary-aged pupils and GBP 1,075 for secondary-aged pupils who are eligible for FSM, and GBP 2,630 for primary and secondary pupils who were previously looked after by a local authority or other state care.
Previous to the pupil premium, the Education Act 2002 and subsequent funding reforms led to systematic inclusion of Additional Educational Needs (AEN) and area deprivation indicators in local authority formulas from 2003–04 onwards.
The High Needs Block NFF, introduced in 2018-19, focuses on children and young people with special educational needs and disabilities (SEND). Funding is allocated to local authorities via the High Needs Block of the DSG, with the basic entitlement factor providing a minimum of GBP 4,660 per pupil for the 2024-25 school year. The calculation considers factors including local child population, deprivation, health and disability, and low attainment. The Department for Education (2023, p. 30) illustrates that the High Needs NFF includes eleven factors reflecting local need, along with funding floor and gains limit factors to ensure all authorities receive per-pupil increases of between 3% and 5% of their 2–18 population.
Consolidation of Previous Grants
Previously, schools also received funding through the Teachers’ Pay Additional Grant (TPAG), Teachers’ Pension Employer Contribution Grant (TPECG 2024), and the Core Schools Budget Grant (CSBG). As of 2025-26, these grants are now consolidated within the NFF school block allocations.
3. Education resources to students and families
The 16 to 19 Bursary Fund offers financial support to students to help them overcome barriers to continuing education. Students over 19 can also apply for the discretionary bursary if they have an Education, Health and Care (EHC) plan or are continuing a course they began between the ages of 16 and 18, known as ‘19+ continuers’. Bursaries are targeted at students in defined vulnerable groups, including those in financial need and those with disabilities.
4. Social policies and family support programmes
The following programmes are applicable to England, Wales, and Northern Ireland.
The Child Benefit is a universal programme that provides financial support to families with children under 16, or under 20 if they remain in approved education or training. Introduced through the 1975 Child Benefit Bill, it merged the previous family allowance and child tax allowance benefits. Families receive GBP 26.05 per week for the eldest or only child and GBP 17.25 for each additional child, along with national insurance credits. Households with an individual income above GBP 60,000 in the 2024-25 tax year may need to pay the High Income Child Benefit Charge, though families can opt out of receiving payments to avoid the charge.
Disability Living Allowance (DLA)
The Disability Living Allowance helps families cover the extra costs of caring for a child with a disability. Weekly rates depend on the level of care required: GBP 29.20 for significant daytime attention, GBP 73.90 for frequent daytime attention or prolonged night care, and GBP 110.40 for both frequent daytime and prolonged night care. The mobility component provides GBP 29.20 for children who can walk but need guidance, and GBP 77.05 for children who cannot walk or have severe disabilities.
5. School meal programmes
Free School Meals (FSM)
In England, children in reception, Year 1 and Year 2 at state-funded schools automatically receive free lunches. In London, this entitlement extends to all children in state-funded primary schools. The FSM programme provides meals for primary and secondary students up to age 16 based on income eligibility. Children aged 16–18 attending further education institutions funded by the state also qualify. From September 2026, the FSM programme will expand to include over half a million additional pupils, ensuring that all households receiving Universal Credit are eligible.
Holiday Activity and Food Programme
Active since 2018, this programme supports children and families during school holidays by providing access to meals and structured activities.
The Free Breakfast Club offers disadvantaged primary school children a free breakfast 30 minutes before school. As of 2025, it operates in nine regions in England, with plans for nationwide rollout in all state-funded primary schools. Schools receive a setup lump sum and a recurring payment of over GBP 1,000 to cover operational costs.
All meals provided in schools adhere to strict food standards, promoting a culture and ethos of healthy eating.
