The consultation, launched last month, is the first part of a two-stage process. Taking into account these views, further proposals will be published for consultation later this year.
As it stands, the school funding system creates large variations in how much money similar schools in different parts of the country receive. Funding is based on historic calculations - some dating back to at least 2005 - that bear little resemblance to the needs of schools and their pupils today, says the Government.
Schools Minister Lord Hill said: “Headteachers tell us that the current funding system is unfair and illogical. In some cases it means a child living in one part of the country can be funded up to £1,800 more than a child with similar needs living elsewhere. Having a fairer system is not just right in principle. It would enable parents to see more clearly how schools are doing with the funding they receive.
“Addressing the disparities and inequalities within our school system is a top priority for the Coalition Government. For standards to improve, all pupils must get the support they are entitled to. This consultation is the first step to ensuring fairer funding for all.”
Brian Lightman, General Secretary of the Association of School and College Leaders (ASCL), said: “ASCL has long argued for a reform of the funding system and the development of a new funding system. We are therefore very pleased to see that the Government is launching this consultation.
Russell Hobby, General Secretary of the NAHT, said: “The time is right for a debate on a new funding system. The significant differences in funding between schools of the same size and intake cannot be justified and the current system is far too complicated. Funding must be consistent across schools if accountability is to be fair. We are under no illusions about the challenge and risk, especially in times of financial constraint, but it is a conversation worth having.
The Government is also consulting on potential options for funding Academies next year, as an immediate step towards making the funding system simpler. This consultation will run for six weeks.
At present, Academy funding replicates the funding that other schools in the local authority receive. But this system was designed for a much smaller number of Academies. As more schools choose to convert, the current system is becoming increasingly clumsy and needs to change, says the Government, adding that 629 Academies are now open, compared to 203 in May 2010.
The Government is consulting on three different options for funding Academies in 2012/13.
David Wootton, Chair of the Independent Academies Association, said: “We in the Academy movement are committed to a funding formula that is fair for all schools and all children. The present system is innately unfair and has for a long time disadvantaged many youngsters. The funding system has not kept up with the pace of change or indeed changes in localities.
“A new funding system has the potential to create a fairer and simpler way of funding schools. This consultation offers everyone the chance to explore and consider in some detail the opportunities and challenges in moving from the current highly complex arrangements to a simpler, transparent system.”
The intention to consult on the benefits of a new funding system was set out in the Schools White Paper.
