On 11 October, the Department for Education published the provisional 2020-21 National Funding Formula (NFF) allocations for the schools, high needs and the central school services blocks of the Dedicated Schools Grant (DGS). A policy document, published alongside the figures, sets out the overall design of the NFF for 2020-21 and any changes since last year’s formula. Notional allocations were published for local authorities and schools across the country. The officer briefing summarises the changes to the funding formula and the impact it will have on London boroughs.
- London boroughs will receive £7.7 billion in 2020-21 from the three blocks of the DSG that have been published (Schools, High Needs and Central Schools Services) - an increase of £322.7m or 4.4% on 2019-20 (the lowest of all authority types).
- London Boroughs will see the lowest percentage increase in Schools Block funding between 2019-20 and 2020-21 (3.3% compared with 4.9% nationally).
- London Boroughs will see the lowest percentage increase in High Needs Block funding between 2019-20 and 2020-21 (10.4% compared with 12% nationally).
- London will receive the smallest percentage decrease in Central School Services Block funding (-9.0% compared with -9.3% nationally).
- The Government seeks to implement a “Hard” National Funding Formula from 2020-21 onwards, which will limit local authority discretion in agreeing funding to local schools. As a first step to achieving this, the Government has made the use of national minimum per pupil funding levels compulsory.