Despite the government allocating over £7 billion extra for schools in England in the 2019 Spending Round, core spending per pupil in 2022–23 will still be about 1–2% lower in real terms than in 2009–10.

School spending per pupil fell in England by 9% in real terms between 2009–10 and 2019–20. The extra spending will reverse most, but not all, of this cut.

Schools serving the most disadvantaged pupils have seen the biggest cuts over the last decade.

Having been introduced in 2018, the National Funding Formula for schools has ensured extra funding flows to areas that have become more disadvantaged over time. However, as a whole, the formula has provided a bigger funding boost to more affluent areas than to disadvantaged areas.

These are the main conclusions of new research at the Institute for Fiscal Studies, published today and funded by the Nuffield Foundation. This examines trends in day-to-day core school spending in England and excludes extra spending during the pandemic, such as the £3 billion allocated so far for catch-up spending. This report forms part of a wider programme of work looking at trends and challenges in education spending.

Luke Sibieta, Research Fellow and author, said:

‘The 9% fall in school spending per pupil in England over the decade between 2009 and 2019 is the largest in more than 40 years, and probably a lot longer. The fact that it still won’t have recovered back to 2009 levels by 2022 shows just how big the squeeze has been. This will make it that much harder for schools to address the major challenge of helping pupils catch up on lost learning alongside everything else they are required to do. Schools serving disadvantaged communities face the biggest challenges. They faced the biggest cuts up to 2019 and are now receiving the smallest rises. This pattern runs counter to the government’s aim of levelling up poorer parts of the country.’

Josh Hillman, Director of Education at the Nuffield Foundation, said:

‘This IFS research reveals that the largest reductions in per pupil spending have been experienced by schools in deprived areas. We also know that the most disadvantaged pupils are more likely to be behind on their learning as a result of disruptions to their education during the COVID-19 crisis. It is crucial that schools in deprived areas receive appropriate and well-directed funding so that they can help to close the disadvantage gap and ensure all children can reach their potential.’

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