To ask the Secretary of State for Children, Schools and Families what increased resources are provided to schools on the basis of higher staff costs in some parts of the country; what the basis is of this allocation policy; and if he will make a statement. (150886)

The Dedicated Schools Grant (DSG) gives local authorities allocations for multi year periods: the allocations for 2007-08 will depend on pupil numbers in schools in January 2007 and the per pupil guaranteed unit of funding.

The DSG per pupil 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.

As the DSG per pupil guaranteed unit of funding is based on spend per pupil in 2005-06 It will: reflect the higher expenditure caused by the higher staff costs in some parts of the country; and be influenced by Government funding in 2005-06 (see as follows). Each of the ministerial priorities included an Area Cost Adjustment (ACA) factor which reflects two kinds of difference between areas in costs:

differences in labour costs (the ‘Labour Cost Adjustment’); and

differences in business rates paid on local authority premises (the ‘Rates Cost Adjustment’)

The formula used to calculate Schools Formula Spending Share for 2005-06 and previous years took account of the higher staff costs in some parts of the country through the inclusion of the ACA factor.

It is a matter for each local authority—in consultation with their Schools Forums—to determine the level of funding between different providers, based on an assessment of local circumstances.