Impact assessment

Equality impact assessment: new funding formula for schools

This impact assessment looks at the consultation on the principles behind a new funding formula for schools arising from the review of the dedicated schools grant (DSG).

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government


Equality impact assessment: new funding formula for schools


Revenue funding for schools is provided through central government grants paid to local authorities (LAs). In the 2010 to 2011 year, school revenue funding will amount to over £42 billion, most of which is paid through the dedicated schools grant (DSG). In addition to the DSG there are a number of specific grants, the largest grants being school development grant and school standards grant, but also including other smaller grants such as the ethnic minority achievement grant and school lunch grant. Around £4.5 billion is currently allocated through specific grants.

It is a key aim of the policy for funding schools that it helps reduce and remove inequalities in success rates between different communities by raising the attainment and improving rates of progression in English, mathematics and science at key stage 2 and GCSE for certain communities, particularly those that evidence suggests are underachieving.


  • description of the policy
  • the evidence base
  • what the evidence shows – key facts
  • challenges and opportunities
Published 1 January 2012