The core funding for schools is delivered through the Dedicated Schools Grant (DSG) which was introduced in 2006-07 following two public consultations in 2005. DSG is calculated using the spend plus methodology set out as follows.
Each local authority's total DSG for 2006-07 and 2007-08 was calculated by multiplying their full-time equivalent pupil numbers (aged three to 15) from the January 2006 and 2007 pupil counts by their DSG per pupil Guaranteed Unit of Funding. The DSG Guaranteed Unit of Funding is unchanged from that set in December 2005 and in:
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.
2007-08 was based on the 2006-07 DSG Guaranteed Unit of Funding, with: a basic increase of 5 per cent. per pupil (5.1 per cent. for London authorities); and headroom allocated to reflect three ministerial priorities. See Jacqui Smith's statement to the House setting out the details (21 July 2005, Official Report, column 126-37WS).
We have just consulted on the DSG arrangements for 2008 to 2011. We are currently examining the consultation responses and we will announce details of the school funding system for 2008 to 2011 in the summer.