My Lords, with the leave of the House, I shall repeat in the form of a Statement the Answer given by my right honourable friend the Minister for Schools to an Urgent Question in the other place earlier today. The Statement is as follows:

“As the Government confirmed in a Written Ministerial Statement yesterday, the Department for Education has corrected an error in the notional allocations of the schools national funding formula for 2024-25. Those allocations were originally published and notified to the House on 17 July 2023. However, the department has subsequently uncovered an error made by officials during the initial calculations of the national funding formula. Specifically, there was an error processing forecast pupil numbers, which meant that the overall cost of the core schools budget for 2024-25 would be 0.62% greater than allocated. The department therefore issued new NFF allocations on 6 October this year to rectify that error as quickly as possible.

The Permanent Secretary has apologised for the error in writing to both the chair of the Education Committee and the Secretary of State. The Secretary of State has instructed the Permanent Secretary to conduct a formal review of the quality assurance process surrounding the calculation and quality assurance of the NFF, with external and independent scrutiny. Peter Wyman CBE, the chair of the Institute of Chartered Accountants in England and Wales, will lead the review. Improvements have already been identified to ensure that similar mistakes are not repeated.

I reassure the House that the error does not affect the overall level of school funding, which remains at £59.6 billion for 2024-25. The Government are continuing to deliver in full the core schools budget, which includes funding for mainstream schools and for high needs. As I said, it will remain at £59.6 billion in 2024-25, the highest ever in history in real terms and in cash terms. That is a percentage increase of 3.2% compared with 2023-24. Through the schools national funding formula, average funding is £5,300 per primary school pupil and £6,830 per secondary school pupil in 2024-25, up from £5,200 and £6,720 respectively in 2023-24.

Schools have not yet received their 2024-25 funding, so the correction of this error does not mean adjusting any funding that schools have already received. Likewise, the error will not impact on the publication of the dedicated schools grant in December, or on when schools will receive their final allocations for 2024-25. The 2024-25 high-needs national funding formula allocations, which fund provision for children with complex special educational needs and disabilities, are also unaffected by this error, as are other funding streams outside the NFF, including the teachers’ pay additional grant announced in the summer.

I would also clarify that the recalculation of the NFF for 2024-25 does not affect the affordability of the 2023 teachers’ pay award. There has been no change to the funding that was promised as part of the pay settlement in July and which the unions agreed meant that the pay award was properly funded. The Government recognise that the correction of the NFF error will be difficult for local authorities and frustrating for some school leaders, which is why the department has rectified the error as quickly as possible. The department is working closely with school stakeholders, including unions, to communicate this change and support schools and local authorities.”