Three councils signed up to controversial multi-million pound SEND bailouts have been given government permission to breach minimum funding levels in schools.
Since 2020, local authorities have had to follow national minimum per-pupil funding levels (MPPFLs). This year, the rates are £4,955 for primary pupils, £6,221 for key stage 3 pupils and £6,831 for key stage 4 pupils.
But government documents show North Tyneside, Bracknell Forest and – for the third year in a row – Kent all “gained approval to set a lower value”.
This was “in the context” of their safety valve agreement, where councils make sweeping changes to their SEND services in exchange for extra government cash.
The change is linked to councils being granted permission to top slice their schools budget to fund their high-needs black hole. This year, 33 councils were allowed to seize more than £82 million to prop up the deficits.
‘Divisive financial jiggery-pokery’
Paul Whiteman, general secretary at school leaders’ union NAHT, said the practice “underlines how acutely the SEND system has been underfunded over many years”.
“It’s vital the government’s forthcoming reforms are backed by the funding needed to address this worrying situation, make SEND deficits a thing of the past, and ensure councils do not have to resort to this unhelpful and divisive financial jiggery-pokery.”
Kent transferred £16.5 million – 1.2 per cent – of schools funding to its high-needs budget as part of its six-year, £140 million safety valve agreement.
Primaries received £4,910 – £45 less than the national per-pupil funding rate and the lowest of the three councils this year. This was £6,184 for key stage 3 and £6,742 for key stage 4.
Schools Week analysis suggests the average sized primary school in the area could lose about £12,600.
A spokesperson for the council said it ensures all the schools share the cost fairly. It said 77 per cent of its schools had a per-pupil rate above the minimum level, meaning these would be top sliced while 23 per cent would not.
“This money is still being invested in education, just redirected to provide extra help where it’s needed the most. It also ensures all schools share the cost fairly,” they added.
Rationale ‘quite sound’
David Whitehead, chief executive of Our Community MAT and member of the school funding forum, said: “The rationale is quite sound in terms of trying to create a level playing field. I think the bigger picture is that if SEND was funded appropriately in the first place, then the council wouldn’t have to do it.”
In Bracknell Forest, primaries received £4,930 per pupil. This was £6,196 and £6,806 for key stages 3 and 4 respectively. The authority transferred £900,000 – 0.85 per cent – from its schools budget.
Stuart McKellar, the council’s executive director of resources, said all schools were fully consulted on “all aspects of the council’s safety valve proposal” with the DfE and “this decision was not taken lightly”.
The council signed a seven-year safety valve agreement in 2023. It is facing a cumulative high-needs deficit of £34 million by April next year.
He said the authority requested permission to reduce the minimum level for a “small number of schools”, adding: “We understand the impact funding decisions can have and we remain committed to prioritising the needs of the most vulnerable children in our schools.”
‘More equitable’
In North Tyneside, primary pupils attracted £4,932 in funding, while key stage 3 and 4 pupils received £6,192 and £6,800 respectively.
Jon Ritchie, the council’s resources director, said making the change meant the 0.5 per cent transfer was “more equitable amongst our schools and would impact each school’s budget more fairly”.
The schools forum did not approve the transfer last year. But ministers can overrule this.
David Watson, St Thomas More high school headteacher and schools forum chair, said: “We really support what the local authority is doing within the safety valve programme … but what we felt is it shouldn’t ideally be at the expense of the core schools budget.”
Meanwhile, Bournemouth, Christchurch and Poole Council – which previously had to reduce its minimum funding levels but did not this year – warned ministers its £183 million deficit is “forcing” it to make “impossible financial decisions” with “devastating consequences”.
It called on government to allow them to use high-needs cash to cover £10 million interest repayments on their debt.
Council leader Millie Earl said: “There is an increasing risk of breaching established local government funding rules.
“We have heard promise after promise of a national solution, but we are yet to see any proposals or plans.”
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