Where Does School Funding Come From?
School funding in England comes primarily through a system called the National Funding Formula (NFF), which allocates money based on factors like pupil numbers, deprivation, and local costs. The main sources are:
- Basic per-pupil funding: A fixed amount for each pupil, varying by age (secondary pupils attract more than primary)
- Deprivation funding: Additional money based on the proportion of pupils from disadvantaged backgrounds
- Pupil Premium: A separate grant of around £1,455 per eligible pupil (those who qualify for free school meals, or have done in the past six years)
- SEND funding: Additional money for pupils with special educational needs
- Rates and premises funding: Contributions toward building costs and business rates
- Other grants: PE and sport premium, universal infant free school meals funding, and others
For academies, funding comes directly from the Education and Skills Funding Agency (ESFA). For maintained schools, it flows through the local authority.
How Much Does a School Spend Per Pupil?
Per-pupil spending is the single most useful figure for comparing school finances. It tells you the total expenditure divided by the number of pupils, and it varies enormously:
- Primary schools: Typically £4,500–£7,000 per pupil
- Secondary schools: Typically £5,500–£8,500 per pupil
- Special schools: Often £20,000+ per pupil due to higher staffing ratios and specialist provision
The variation depends on school size (small schools have higher per-pupil costs because overheads are spread across fewer children), location (London schools receive higher funding), and the proportion of pupils with additional needs.
Where Does the Money Go?
The vast majority of a school's budget goes on people. A typical breakdown looks like this:
Staffing (70–80% of total spending)
- Teaching staff: Salaries for teachers, including senior leaders
- Support staff: Teaching assistants, administrative staff, site managers, IT support
- Supply costs: Covering absences for training, illness, or maternity
Premises (8–12%)
- Building maintenance and repairs
- Energy bills
- Cleaning and caretaking
- Business rates (though academies are exempt)
Learning Resources (3–6%)
- Books, materials, and equipment
- Technology (computers, tablets, interactive screens)
- Curriculum resources (science equipment, music instruments, PE kit)
Other (5–10%)
- Professional services (HR, legal, financial auditing)
- Insurance
- Catering (where not self-funding)
- Staff training and development
What to Look For in School Finance Data
Staff-to-pupil spending ratio
High staffing expenditure isn't automatically good or bad. A school spending 82% of its budget on staff might be providing excellent, well-staffed education, or it might have very little left for resources and building maintenance. Context matters.
Reserves
Schools can carry forward unspent money into the next year. A healthy level of reserves (typically 3–8% of income) provides a buffer for unexpected costs. Very high reserves might suggest money isn't being spent where it's needed. Very low reserves or a deficit indicates financial pressure.
Spending trends
A single year's data is a snapshot. Looking at spending over three years reveals whether a school is managing its budget sustainably or gradually running into difficulty. Declining per-pupil spending or growing deficits are warning signs.
Comparison with similar schools
Raw figures mean little in isolation. Comparing a school's spending with similar schools (same size, phase, and deprivation level) reveals whether it's spending more or less on particular areas. The What School makes this straightforward.
Why School Finance Matters to Parents
School finance might seem like a concern for heads and governors rather than parents, but it affects your child directly:
- Staffing levels determine class sizes and the availability of teaching assistants
- Resource spending affects the quality of books, technology, and equipment
- Building maintenance affects the learning environment
- Training budgets affect the quality of teaching
- Financial sustainability determines whether the school can maintain its current provision
A school under severe financial pressure may be forced to cut teaching assistants, reduce enrichment activities, defer maintenance, or increase class sizes, all of which directly affect pupils.
How Schools in Multi-Academy Trusts Handle Finance
Academy trusts manage finances centrally, which creates both efficiencies and complexities:
- Top-slice: Most trusts take a percentage (typically 3–7%) of each school's income to fund central services (HR, finance, school improvement, legal)
- Bulk purchasing: Trusts can negotiate better deals on supplies, energy, and services
- Cross-subsidisation: Trusts can direct resources to schools that need them most
- Financial reporting: Trust accounts are published annually and available on the Charity Commission website
This means an individual academy's finances might look different from a maintained school's, and comparing like-for-like requires some care.
How to Explore School Finance
On the What School, each school's Finance tab shows:
- Per-pupil spending and how it compares to similar schools
- Spending breakdown by category
- Trends over recent years
- Income sources
You can also explore the government's Schools Financial Benchmarking service, which provides detailed financial data and allows you to compare schools directly.
Useful Resources
- Schools Financial Benchmarking
- School resource management (GOV.UK)
- National Funding Formula explained (GOV.UK)
- Explore your school's finance data on the What School
Understanding how a school spends its money won't tell you everything about its quality, but it will tell you about its priorities. A school that invests heavily in staff development, maintains strong reserves, and keeps spending sustainable is likely one that's thinking carefully about its future, and your child's.