Derbyshire County Council's education chief claims Derbyshire's schools have suffered a 'big fat cut' in Government funding

The Conservative-controlled county council’s Cabinet considered the Labour Government’s School Block Funding Settlement for primaries and secondaries for the 2025-26 financial year during a meeting on February 20 which Cllr Alex Dale claims amounts to only a 0.3per cent increase after taking into account a number of other factors.

Cllr Dale, Cabinet member for Education, has argued there is a ‘shortfall’ after factoring in Teachers Pay and Pension Grants, increases in deprivation, inflation, and that calculations are based on only seven months of the previous Core Schools Budget Grant, and that there has been an increase in Free School Meals of 4.5per cent since October 2023 despite a reduction in pupil numbers by 1.1per cent.

He told the meeting: “This year’s allocation is probably one of the worst I have seen in all the times I have seen it in this role. One of the worst certainly.”

Cllr Dale argued that in terms of the 2025-26 Schools Block Allocation and National Funding Formula multipliers Derbyshire has been left with a ‘shortfall’ with the Department for Education’s figure of around a 2.3per cent increase actually representing only a 0.3per cent increase after all the other appropriate factors have been taken into account.

He explained the Government’s 2.3per cent average increase reduces when you consider it is calculated on only seven months of the year and then it is reduced further by factoring in the National Funding Formula multipliers, the demographic and increased Free School Meals and he claims the council is left with just a 0.3per cent increase alongside inflation.

Cllr Dale added: “Almost rubbing salt into the wound – schools are also expected to meet next year’s pay award almost entirely themselves.”

He also said: “I cannot escape the conclusion that this is a big fat cut both in cash terms and real terms. This is a cut to our schools.”

The council’s report identifies what it calls a ‘shortfall’ due to what it claims are increases in deprivation and increases in Free School Meals of 4.5per cent since October, 2023, despite a reduction in pupil numbers of 1.1per cent.

Its report states that applying the NFF multipliers to the Department for Education’s school formula data is estimated to cost £632.524m, leaving a ‘shortfall’ of £4.081m compared to the DfE’s Schools Block total allocation of £628.443m for 2025-26, excluding a Pupil Growth Fund.

This ‘shortfall’ is largely due to increases in deprivation and free school meals indicators, according to the council report, and it reiterates that despite a reduction in pupil numbers by 1.1per cent there has been an increased pressure with Free School Meals of 4.5per cent since October, 2023.

One option being considered by the council to help close the ‘shortfall’ is to use resources within the Pupil Growth Fund and Falling Rolls Fund element of the Schools Block.

The Schools Forum, which is made up of school representatives, will oversee the PGF allocations and it has been asked to consider making a contribution of £0.25m and £0.39m leaving a £0.541m remainder from the PGF to meet other responsibilities.

As a result of the School Forum’s decisions, the resources available for the Schools Block next year will increase to £629.083m leaving a residual ‘shortfall’ of £3.441m based on the NFF multipliers, according to the council.

Cllr Dale said the council will be lobbying Government to say the county’s schools will be considerably worse off despite Government rhetoric about wanting to support schools and despite the figure settlements being ‘one of the worst’ he has seen.

He also expressed disappointment that some of the unions have not yet been more vocal about the Schools Funding Block Allocations.

Council Leader, Cllr Barry Lewis said the settlement is a ‘massive disappointment’ and the county council will fight for a ‘fairer settlement in the future’ and he has suggested the council should speak to the schools to find a constructive way forward.

Following the meeting, Cllr Dale said: “We are going to see schools having to make more difficult decisions after a period of time of having to [already] make difficult decisions, and I think in some cases redundancies. Schools are always being asked to do more with less.”

He is also concerned that what he considers to be a poor schools funding settlement will create more pressures for schools trying to achieve more mainstream inclusion for youngsters with Special Educational Needs and Disabilities despite an increase in the Government’s High Needs Block Settlement.

Derbyshire County Council’s Cabinet formally noted the Government Department for Education’s School Block Allocation and its overall Dedicated School Grant Block Allocations for 2025-26 for the county.

The overall DfE’s 2025-26 Schools Block Allocation for Derbyshire, including the Pupil Growth and Falling Rolls Fund, stands at £629.625m compared with £623.095m in 2024-25.

And the overall Derbyshire Dedicated School Grant Block Allocations including the schools block, high needs, early years and central school services for 2025-26 showed a total allocation o £872.166m with a 6.30per cent increase.

A Department for Education spokesperson said: “The Budget delivered on the government’s commitment to put education back at the forefront of national life, protecting key education priorities including core funding for schools.

“Despite the challenging economic context, we are putting a further £2.3bn into schools’ budgets, with £1 billion for children and young people with high needs.

“The figure mentioned by Derbyshire council’s cabinet member for education is unrecognisable. The per pupil percentage funding increase for Derbyshire in 25-26 is 2.3% compared to 24-25. We will support leaders to use funding as efficiently as possible, while continuing to deliver better life chances for children and young people across the country.”