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Education: Per Capita Costs

Volume 460: debated on Thursday 17 May 2007

To ask the Secretary of State for Education and Skills how much was allocated per capita by his Department to pupils in (a) City of London, (b) the London borough of Bexley and (c) England in (i) 2005-06 and (ii) 2006-07; and what formula was used for such allocations. (123592)

The per capita allocations for City of London, London borough of Bexley and England in 2005-06 and 2006-07 are set out as follows. Please note that it is wrong to compare funding per pupil in Bexley with City of London as the City of London:

has the highest wage costs in the country;

is the smallest authority in the country so is unable to take advantage of economies of scale; and

draws its pupils from deprived backgrounds.


2005-06 EFS

2006-07 DSG




London borough of Bexley



City of London




In 2005-06 local authority funding was based on Education Formula Spending (EPS) which formed the education part of the Local Government Finance Settlement.

The introduction of the Dedicated Schools Grant (DSG) in 2006-07 fundamentally changed how local authorities are funded. In addition, DSG has a different coverage to EFS: EFS comprised a schools block and an LEA block (to cover LEA central functions) whereas DSG only covers the school block. LEA block items are still funded through DCLG’s Local Government Finance Settlement but education items cannot be separately identified.

In 2005-06 school funding was part of the local government finance system. School funding was split into four blocks: primary; secondary; under fives; and high-cost pupils. The formula for each block included a basic amount per pupil with an area cost adjustment uplift. The primary, secondary and under five blocks also included an element for pupils with additional educational needs, defined as pupils with: English as an additional language/ethnicity; working families tax credit; and income support. The primary block also had an element to reflect sparsity.

Each local authority’s total Dedicated Schools Grant for 2006-07 was calculated by multiplying their full-time equivalent pupil numbers (aged 3-15) from the January 2006 pupil count by their Dedicated Schools Grant Guaranteed Unit of Funding (the Dedicated Schools Grant Guaranteed Unit of Funding is unchanged from that set in

December 2005).

The Dedicated Schools Grant Guaranteed Unit of Funding for 2006-07 was based on spend per pupil in 2005-06, with a basic increase of 5 per cent. per pupil (5.1 per cent. for London authorities) and headroom allocated to reflect five ministerial priorities. £30 million was also distributed between authorities who spent below the level of undamped Schools Formula Sending Share in 2005-06.