Yesterday, the DfE announced the National Funding Formula (NFF) for 2026/27 The national funding formula for schools The formula covers schools and local authority delivered central services
Unlike last year, there is no section on the High Needs Block that deals with SEND funding. The details will be announced later, at some unspecified time. One other small change seems to be in the calculation of the sparsity index, where the footnote from the 2025/26 NFF document seems to be missing from the main document this year.
Last year, there as a footnote that stated in a footnote on page 26 – paragraphs were not numbered last year – that “6 A compatible school means one of the relevant phases which a pupil could attend. Selective grammar schools are not considered when identifying the second nearest compatible school, but faith schools are included.”
This year, paragraph 25 states that “Eligibility for sparsity funding depends on the distance the pupils living closest to the school would have to travel to their next nearest compatible school, and the average number of pupils per year group.” However, there is no comment about what is a compatible school.
So, no change, apart from the lack of a definition of a ‘compatible school’. This footnote has now been relocated to the Technical Manual, and appears as footnote 9 on page 19 of the manual. Schools block national funding formula 2026 to 2027: technical note
Overall, the minimum per pupil funding for primary pupils increases from £4955 to £5115, and for secondary pupils up to year 11, from £6,455 to £6,640. Schools
in IDACI band G will, as before, receive no additional funding through that factor. If they don’t qualify for additional funds through other factors, and some schools won’t, as 62.5% of LSOAs are in IDACI Band G, this could be a challenging year for them.
Many of these schools will no doubt turn to parents for support, or perhaps more will follow the north London school, and look to bring in additional income from operating overseas alongside the many private schools that already have overseas campuses?
With the budget next week, and the local government settlement not being announced any earlier than last year, plus the delay in the High Needs Block announcement, this is going to be a tough budget setting time for schools and local authorities between now and February, when the upper tier local authorities responsible for the NFF must set their council budgets.
Perhaps the High Needs block will feature as a rabbit in the Chancellor’s budget speech to make everyone feel better that the government has found a solution to the massive deficits protected by the override that was extended to March 2027.
Reading the document, I was also struck by the fact that there are more references to local authorities than to the ‘schools forum’. Has the latter run its course as a decision-making body? Is it time to review its future, and certainly its membership?