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School Funding in Wales

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School Funding in Wales National Assembly for Wales Children, Young People and Education Committee School Funding in Wales July 2019 www.assembly.wales The National Assembly for Wales is the democratically elected body that represents the interests of Wales and its people, makes laws for Wales, agrees Welsh taxes and holds the Welsh Government to account. An electronic copy of this document can be found on the National Assembly website: www.assembly.wales/SeneddCYPE Copies of this document can also be obtained in accessible formats including Braille, large print, audio or hard copy from: Children, Young People and Education Committee National Assembly for Wales Cardiff Bay CF99 1NA Tel: 0300 200 6565 Email: [email protected] Twitter: @SeneddCYPE © National Assembly for Wales Commission Copyright 2019 The text of this document may be reproduced free of charge in any format or medium providing that it is reproduced accurately and not used in a misleading or derogatory context. The material must be acknowledged as copyright of the National Assembly for Wales Commission and the title of the document specified. National Assembly for Wales Children, Young People and Education Committee School Funding in Wales July 2019 www.assembly.wales About the Committee The Committee was established on 28 June 2016. Its remit can be found at: www.assembly.wales/SeneddCYPE Committee Chair: Lynne Neagle AM Welsh Labour Torfaen Aelodau cyfredol y Pwyllgor: Dawn Bowden AM Hefin David AM Welsh Labour Welsh Labour Merthyr Tydfil and Rhymney Caerphilly Suzy Davies AM Janet Finch-Saunders AM Welsh Conservatives Welsh Conservatives South Wales West Aberconwy Siân Gwenllian AM Plaid Cymru Arfon The following Members were also members of the Committee during this inquiry: Michelle Brown AM Jack Sargeant AM Independent Welsh Labour North Wales Alyn and Deeside School Funding in Wales Contents Chair’s foreword ..................................................................................................... 7 Recommendations ................................................................................................ 9 Glossary of Terms ................................................................................................. 13 1. Background to the inquiry ............................................................................ 15 Evidence gathered by the Committee ................................................................................................ 16 2. The School Funding process: How it works ........................................... 18 How the money gets from UK Government to Welsh Government ............. 18 How the money gets from Welsh Government to schools ............................................... 20 Individual Schools Budget (ISB) ............................................................................................. 21 How are schools funded in Wales? .......................................................................................................... 22 3. School funding levels .................................................................................... 23 Gross budgeted expenditure ........................................................................................................................ 23 Delegated expenditure ...................................................................................................................................... 24 4. The sufficiency of the overall quantum and the priority given to education ............................................................................................................... 27 Stakeholders’ evidence ........................................................................................................................ 27 The Welsh Government’s position .............................................................................................. 31 Our view ............................................................................................................................................................. 33 5. The Welsh Government’s allocation of available resources between local authorities ................................................................................ 38 Stakeholders’ evidence ....................................................................................................................... 39 The Welsh Government’s position ............................................................................................. 42 Our view ............................................................................................................................................................. 44 6. Local authorities’ prioritisation of funding for schools ................... 47 Stakeholders’ evidence ....................................................................................................................... 49 The Welsh Government’s position .............................................................................................. 51 Our view ............................................................................................................................................................ 53 School Funding in Wales 7. Local authorities’ apportioning of the funding they make available for schools, between schools ...................................................... 56 Stakeholders’ evidence ........................................................................................................................57 The Welsh Government’s position ............................................................................................ 60 Our view ............................................................................................................................................................. 61 8. Unhypothecated funding and targeted funding ............................... 64 Stakeholders’ evidence ....................................................................................................................... 65 The Welsh Government’s position ............................................................................................ 68 Our view ............................................................................................................................................................ 69 9. School budget reserves and deficits ........................................................ 71 Stakeholders’ evidence ........................................................................................................................ 72 The Welsh Government’s position ............................................................................................. 73 Our view .............................................................................................................................................................75 10. Three-year budgets for schools .............................................................. 78 Stakeholders’ evidence ....................................................................................................................... 78 The Welsh Government’s position ............................................................................................ 79 Our view ............................................................................................................................................................ 80 11. The role of the “middle tier” ....................................................................... 82 Stakeholders’ evidence ....................................................................................................................... 82 The Welsh Government’s position ............................................................................................ 85 Our view ............................................................................................................................................................ 86 12. Expenditure on “school improvement” ............................................... 88 Stakeholders’ evidence ....................................................................................................................... 88 The Welsh Government’s position ............................................................................................ 89 Our view ............................................................................................................................................................ 90 13. Delegation: the proportion of education funding reaching the chalk face ............................................................................................................... 92 Stakeholders’ evidence ....................................................................................................................... 93 The Welsh Government’s position ............................................................................................ 98 Our view ............................................................................................................................................................ 99 2 School Funding in Wales Annex A: List of oral evidence sessions ..................................................... 101 Annex B: List of written evidence ............................................................... 102 Annex C: Analysis of local authorities’ Indicator Based Assessment (IBA), budget allocations for education, per pupil expenditure and school standards ......................................................
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