Inequalities in school spending across local authorities in England: A time-trend analysis

Abstract

Investment in schools has wide-ranging implications for society, from improving learning outcomes to economic growth and social cohesion. Addressing inequalities in school funding is important, as part of an effort to guarantee equal opportunities. However, little is known about the consequences of recent changes to school funding in England on school spending, including the introduction of the National Funding Formula (NFF) policy. We employed interrupted panel regression models to assess trends and inequalities in school spending, and whether the NFF policy was associated with a decline in geographical inequalities between schools in the most deprived fifth of local authorities and the rest of England. We used routinely available school-level spending data for all publicly funded primary and secondary schools in England between 2015 and 2023, aggregated to lower-tier local authority level (N = 315) and adjusted for inflation. We found reduced funding for schools in England over the last decade, with clear geographical inequalities. These cuts have particularly impacted schools in deprived local authorities. While funding across schools increased after the introduction of the NFF, inequalities in spending remain. These patterns are concerning in the context of rising inequalities in educational attainment and recent inflationary pressures impacting school spending. School funding policy should take into account social factors affecting schools in deprived areas, where pupils often face higher rates of poverty, food insecurity and housing instability.