School funding (a quick guide)
Excluding capital funding, for the year 2024/25, the UK budget for schools was set at £63,700,000,000, which is primarily allocated to schools in the following ways:
Element 1 Funding (£4,000): Often referred to as "core funding," this amount is allocated to all children attending schools in the UK. It covers essential expenses such as teacher salaries and school maintenance.
Element 2 Funding (additional £6,000): This funding is provided for children with Special Educational Needs (SEN) or additional needs. Element 2 funding is automatically allocated to schools from the National SEN Budget. How schools utilise this funding can vary significantly; some schools that are very supportive of SEN may overspend, while others might distribute funds more evenly to support all students. If you have a child with SEN and feel that the school is not providing adequate support, it is advisable to ask the school how they are using Element 2 funding to assist your child.
Element 3 Funding: Known as Education Health and Care Plan (EHCP) funding, this amount varies based on the specific needs of the child and can range from hundreds to tens of thousands of pounds. This funding is provided by the local authority (LA) from their High Needs funding block. It is sometimes referred to as "top-up funding" because it supplements the amounts received from Elements 1 and 2. Read my EHCP guide & how to write one here.
In addition to the above, the pupil premium grant is additional funding provided to state schools to enhance educational outcomes for students from low-income families. This funding is crucial as it helps to bridge the attainment gaps that many disadvantaged children experience. Schools can use Pupil Premium funding for various purposes, including interventions, extracurricular activities, educational resources, FREE school meals, FREE music lessons, and more.
Eligibility: Low-income parents who receive Universal Credit, Income Support, or Job Seeker’s Allowance may qualify for Pupil Premium.
Pupil Premium Rates for 2025/26:
£1,515 per year for primary-age children
£1,075 per year for secondary-age children
Other grants:
Pupil Premium Plus (PPP) for looked-after children
Service Pupil Premium (SPP)
Written by John Hugill
March 2025