Regulation 27 Requirements relating to the calculation of local authority funding formulaI1

England and Wales

(1)

In determining budget shares for primary and secondary schools (other than special schools, pupil referral units and nursery schools), excluding any amount to be allocated in respect of nursery classes or community early years provision in those schools, a local authority must set single per pupil amounts or, as the case may be, single sums or lump sums for the factors referred to in regulations 14 (pupil numbers), 16 (social deprivation - primary and secondary schools), 17 (lump sums for primary and secondary schools), 18 (low prior attainment factor), 19 (English as an additional language), 20 (mobility factor) and 22 (the sparsity factor) as follows—

(a)

A is the value of the factor in the local authority’s funding formula (the “local factor value”) for the previous funding period;

(b)

B is the national funding formula factor value for the previous funding period^f1, adjusted by the local authority’s ACA, except where a local authority is a fringe authority, where B is the national funding formula factor value for the previous funding period, adjusted by the lowest ACA applied within that local authority’s area;

(c)

C is the absolute value of A – B;

(d)

D is the local factor value for this funding period;

(e)

E is the national funding formula factor value in this funding period^f2, adjusted by the local authority’s ACA, except where a local authority is a fringe authority, where E is the national funding formula factor in this funding period, adjusted by the lowest ACA applied within that local authority’s area; and

(f)

F is the absolute value of D – E.

(2)

The local authority must set D so that—

(a)

F is equal to or smaller than (C x 0.9); or

(b)

D is—

(i)

equal to or greater than (E x 0.975); and

(ii)

equal to or smaller than (E x 1.025).

(3)

If A is smaller than B, the local authority must set D to be equal to, or smaller than E x 1.025.

(4)

If A is greater than B, the local authority must set D to be equal to, or greater than E x 0.975.

(5)

In this regulation, “the absolute value” of a number means that number expressed as a positive number.

Annotations

Commencement

I1: Reg. 27 in force at 11.2.2026, see reg. 1(2)

Footnotes

f1: The national funding formula factor values for the previous funding period can be found in the document entitled “The national funding formulae for schools and high needs 2025 – 26” published in November 2024. The document can be found at https://assets.publishing.service.gov.uk/media/6900e831a6048928d3fc2b3e/2025-26_NFF_policy_document.pdf. A printed copy may also be inspected at the Department for Education, Sanctuary Buildings, Great Smith Street, London SW1P 3BT upon request.
f2: The national funding formula factor values for the 2026 – 2027 funding period can be found in the document entitled “The national funding formula for schools and high needs 2026 to 2027” published on 19th November 2025 and updated on 17th December 2025. The document can be found at https://assets.publishing.service.gov.uk/media/69417d442d5e7e863253755a/The_national_funding_formula_for_schools_and_high_needs_-_2026_to_2027.pdf. A printed copy may also be inspected at the Department for Education, Sanctuary Buildings, Great Smith Street, London SW1P 3BT upon request.