Welsh govt launches consultation to reform school funding system

The Welsh government has launched a public consultation on proposed reforms to school funding regulations, aiming to bring greater consistency and transparency across the country.

Lynne Neagle, cabinet secretary for education, said the changes would address long-standing concerns over unequal spending between local authorities and schools. 

The consultation proposes amendments to merge and update three sets of existing regulations: the School Funding (Wales) Regulations 2010, the Education Budget Statements (Wales) Regulations 2002, and the Education (Outturn Statements) (Wales) Regulations 2003.

According to Neagle, the aim was to improve transparency, comparability and consistency in funding, enabling more informed budget decisions “at all levels”. The consultation officially began yesterday (24 June) and will run until 2 September 2025.

The move follows the publication of a summary report from the government’s review of the school funding formula in February, which recommended steps to address disparities in funding and improve the system’s clarity.

School leaders’ union NAHT Cymru welcomed the consultation, with national secretary Laura Doel saying that the current system, shaped by 22 different local authority formulas, created a “messy postcode lottery” in school funding.

Doel said: “We will be studying the details of these proposals carefully to ensure they will create a fairer level playing field across the country when it comes to funding.

“Of course, reform of how funding is allocated doesn’t by itself alleviate our serious concerns about sustained underfunding of Welsh schools, which has left many school leaders facing budget deficits and having to cut staffing and support for pupils.”

She added: “However, slicing the pie more equally is a good starting point from which to build a properly funded education system.”