Funding

This article covers public funding for education for 3/4- to 18/19-year-olds in early years providers and schools.

Students in post-compulsory education (aged 16+) may continue their studies in sixth forms in post-primary schools, or at further education colleges. Provision in school sixth forms is funded by the Department of Education (DE) via the Common Funding Scheme (CFS) arrangements described below. Provision in further education colleges is funded under separate arrangements by the Department for the Economy. This is described, along with work-based learning (e.g. apprenticeships), youth training for those aged 16+, and funding for post-19 education, in the article on ‘Adult Education and Training Funding’.

Early childhood education and care (ECEC)

Funding of early years provision aims to be supportive of a range of providers to suit parents’ and children’s needs. It also seeks to support the most disadvantaged young children with a view to improving life chances and social mobility.

For 3- to 4-year-olds, in the year immediately before they start compulsory education (at age 4), the Department of Education (DE) has committed to ensuring that part-time provision is available for all children whose parents want it. This DE-funded pre-school provision is usually available for at least 2.5 hours a day, five days each week (Monday-Friday) for 38 weeks of the year. It was introduced under the Pre-school Education Expansion Programme in 1998, and funded places are offered in grant-aided nursery schools and nursery classes / units in primary schools, and in voluntary and private settings.

The DE funding is provided to the Education Authority (EA), which passes it on to providers. Funding is allocated via the Common Funding Scheme (see the subheading ‘Schools’ which follows).

Government-funded pre-school provision is also offered to the most disadvantaged 2- to 3-year-olds under the ‘Sure Start’ programme.

Parents can choose to pay for additional provision on top of the government-funded part-time provision they receive (or for provision for younger children).

Schools

Schools receive funding for both recurrent (revenue) and capital expenditure.

• Recurrent expenditure is mostly expenditure on salaries of principals (school heads), teachers and other staff. It also includes books, equipment etc. Repairs and maintenance are also normally paid for from recurrent expenditure.
• Capital expenditure is expenditure that produces or protects an asset that will last a long time such as a building, machinery or large items of equipment.

In addition to receiving public funds, schools are free to raise extra funds through voluntary contributions from parents and others (see the subheading ‘Fees within public education’ below), or through a variety of activities, such as renting out school premises or running additional activities that generate income.

Recurrent / revenue funding

Schools and early childhood education and care providers receive their revenue funding via the Education Authority (EA).

The total amount available for school revenue funding – the General Schools Budget (GSB) – comprises three elements.

• Resources Held at Centre, which are amounts allocated to school budgets other than by the Common Funding Scheme (see below), e.g. for special educational needs or contingency costs.   
• Centrally Held Resources Attributed to Schools, which are amounts held by the Education Authority (EA) for the provision of services to schools, e.g. for home-to-school transport, school meals, curriculum advisory and support services, and school library services.
• The Aggregated Schools Budget (ASB), which is the total amount delegated to schools.

The Aggregated Schools Budget (ASB) is allocated to schools under the Common Funding Scheme. This is calculated by the Department of Education (DE) using a common funding formula, whilst the EA administers the distribution of the funding.

There are two formulae under the Scheme: one for nursery and primary schools, and one for post-primary schools.

The formula for each funding stream is made up of a range of factors developed to reflect the main costs associated with schools. These include:

• the number, age and profile of pupils
• the relative size of schools
• costs associated with school buildings.

They also include a range of other factors, which take into account the distinctive features of individual schools and their pupils, and recognise that certain pupils give rise to significant and unavoidable costs. These factors include a ‘Targeting Social Need’ (TSN) factor to take account of social deprivation, and factors for the support of children from the Traveller community, looked after children, newcomer pupils (pupils for whom English or Irish is an additional language), and Irish-medium education.

The formulae aim to ensure that, within each funding stream, schools of similar size and characteristics receive similar levels of delegated funding.

Responsibility for spending a school’s share of the ASB is delegated to the board of governors in individual schools. Its role is to plan and use the budget to maximum effect in accordance with the school’s needs and priorities. Under the local management of schools (LMS) system, introduced by The Education Reform (Northern Ireland) Order 1989, financial and managerial responsibilities have been delegated to boards of governors in publicly funded schools since 1991.

The Common Funding Scheme was introduced in 2005/6. Reforms introduced to the Scheme in 2014/15 focused on making school funding allocations more targeted on social need and more focused on the sustainability of schools. The latter is set in the context of measures to address the oversupply of school places – see the ‘Geographical accessibility’ subheadings in the article on the organisation of primary education for further information.

The principles which underpin the Common Funding Scheme are that:

• sustainable schools should be funded according to the relative need of their pupils, and in a way that enables the effects of social disadvantage to be substantially reduced
• sustainable schools should be funded on a consistent and fair basis, taking full account of the needs of pupils
• the formula should support schools in delivering the curriculum
• the formula should underpin and reinforce wider education policy and objectives
• the formula should be as transparent and comprehensible as possible and predictable in its outcome.

Capital funding

Capital funding is provided to protect the schools' estate (building and grounds). Depending on the type of provider / legal category of school, capital funding is either provided directly to schools by the Department of Education (DE) or is passed from the DE to schools via the Education Authority (EA). (See the article on ‘Administration and Governance at Local and/or Institutional Level’ for information on the categories of school.)

The DE’s strategy for capital investment is focused on the development of sustainable schools in the context of measures to address the oversupply of schools and school places (see the ‘Geographical accessibility’ subheadings in the article on the organisation of primary education).

Capital projects are divided into major and minor capital works and maintenance. As the cost of eligible projects usually exceeds the resources available, funding is directed at those schools that are considered the highest priority based on educational need and ministerial priorities. The Department of Education normally announces a programme of capital works to be undertaken each year.

Major capital works are capital projects that cost in excess of £0.5 million (€0.586 million*). They might include, for example:

• the construction of a new school building, either to meet unmet demand for school places or to replace an existing, sub-standard school building
• the construction of a new school building to facilitate the rationalisation or amalgamation of two or more schools
• the extension or refurbishment of existing school buildings.

Minor capital works, which are again prioritised according to greatest need, cover projects with a value less than £0.5 million (€0.549 million*). They include projects which will, for example, enable the DE to meet its legal obligations in respect of the provision of school places, or in meeting health and safety requirements, or in providing facilities for the disabled.

In addition, the School Enhancement Programme makes funding of between £0.5 million (€0.549 million*) and £4 million (€4.4 million*) available for projects aimed at refurbishing or extending existing school provision. Priority is given to projects aimed at facilitating amalgamation or rationalisation of schools in the context of the oversupply of schools and school places in Northern Ireland.

Further information on capital funding for schools is available on the DE website.

* Exchange rate used: €1 = £0.91 14 December 2020.

Financial autonomy and control

All schools have a high level of autonomy and are expected to use their resources in the best way possible to provide a high quality teaching and learning environment for all pupils.

Most school financial administration and management functions are delegated to the board of governors and the school principal (headteacher). This has been the case since the introduction of local management of schools (LMS) in 1991 under The Education Reform (Northern Ireland) Order 1989.

Each school’s share of the Aggregated Schools Budget (ASB) is allocated as a block grant to cover revenue costs such as salaries for the principal, teachers and other staff; books and equipment; and repairs and maintenance. The board of governors is responsible for spending the ASB share (and all other school funds) economically, efficiently and effectively for the purposes of the school.

There are different arrangements for the acquisition and management of resources (e.g. staff, operational resources and infrastructure etc.) for the different legal categories of school. These are summarised below.

• Controlled schools are owned by the Education Authority (EA), which owns the school premises (land and buildings), and fully funds the school for capital and revenue expenditure (the Department of Education (DE) allocates funding to the EA for this). The EA employs the staff. Controlled schools mainly educate Protestant children.
• Controlled integrated schools are also owned by the EA, which funds them in the same way as controlled schools and employs the staff. Controlled integrated schools educate Protestant and Catholic children together.
• Catholic-maintained schools are owned by the Catholic Church and mainly educate Catholic children. The EA fully funds them for revenue expenditure, while they receive capital funding directly from the Department of Education (DE). The Council for Catholic-Maintained Schools (CCMS) employs the staff.
• Grant-maintained integrated schools, which educate Protestant and Catholic children together, are owned by trustees or the school board of governors. They are fully funded for revenue expenditure by the EA, whilst the DE is directly responsible for supplying them with capital funding. The board of governors employs the staff.
• Voluntary grammar schools are owned either by school trustees or by the founding body of the school. They are funded for revenue costs by the EA, while the DE is responsible for supplying them with capital funding. The board of governors employs the staff.

Boards of governors have a key role to play in ensuring that schools are publicly accountable for what they do, for the results they achieve, and for the way in which resources are allocated and the budget is managed. The DE’s guidance for governors includes sections advising them on their responsibilities for financial management (see chapter 8 in particular).

Financial autonomy and control in further education (FE) colleges, which provide education for adults and for young people aged 16+ who are not continuing their education in school sixth forms in Northern Ireland, is described in the article on ‘Adult Education and Training Funding’.

Fees within public education

Early childhood education and care

Under the Pre-school Education Programme, the Department of Education (DE) provides funding for 10 hours of pre-school education, 2.5 hours a day, 5 days a week. This is available for 38 weeks of the year, September to June, for 3- to 4-year-olds whose parents want it.

This government-funded provision is available in private and voluntary (third sector) settings and in grant-aided nursery schools and nursery units / classes in primary schools. Parents may extend provision by paying for additional hours of care for their child.

Funded provision to prepare some disadvantaged 2-year-olds for pre-school education is also available under the ‘Sure Start’ programme.

Schools

Education is free of charge for all pupils in grant-aided schools from age 4 to age 16. Education is also free of charge for full-time students aged 16-18/19 in post-compulsory education in school sixth forms. The only exception to this is in some voluntary grammar schools, which may charge capital fees of up to £140 (€153.99*) per year. These fees are for the purpose of meeting expenditure incurred for the provision or alteration of school premises or facilities, or for the provision of associated equipment.

Under The Education Reform (Northern Ireland) Order 1989, publicly funded schools may not charge for:

• education provided during school hours
• admission applications
• education which is part of the Northern Ireland Curriculum or is part of statutory religious education
• education which is part of the syllabus for a prescribed public examination that the pupil is being prepared for at the school
• entry for a prescribed public examination (e.g. GCSEs at age 16)
• the supply of materials, books, instruments or any other equipment (all text and exercise books belong to the school).

Charges may be made for activities which fall outside the above categories. Schools may, for example, charge for musical instrument and vocal music tuition provided during the school day if a parent requests it. This is providing this tuition is not an essential part of the Northern Ireland Curriculum, or of a syllabus for a prescribed public examination being followed by the pupil. Schools are also able to charge for some activities that are known as ‘optional extras’. This includes extended day services such as before-school or after-school clubs, although the Department of Education in Northern Ireland does provide some financial support to some schools to offer an extended schools programme.

Schools may ask parents for a voluntary contribution towards the cost of an activity that takes place during school hours, or towards school funds more generally. The contribution must be genuinely voluntary, and the pupils of parents who are unable or unwilling to contribute may not be discriminated against. This means, for example, that if there are not enough voluntary contributions to make an activity possible, and there is no way to make up the shortfall, then it must be cancelled.

The board of governors of all grant-aided schools must have a charging policy in place and keep this under regular review.

* Exchange rate used: €1 = £0.91 14 December 2020. 

Financial support for learners’ families

The system of welfare benefits in Northern Ireland for families with children is a non-devolved policy area and a matter for the UK Government.

Child Benefit is a tax-free payment from the UK Government which can be claimed for a child. It is available for children aged 0 to 16, or 19 if the child is in qualifying full-time education and training. It is not otherwise linked to attendance at school. There is a higher rate for the first child than for subsequent children. In addition, in January 2013, Child Benefit, which had historically been a universal payment, was reformed. Since that date, when one person in the household has an income of more than £50,000 (€54,997.03*), the Benefit falls by 1% for every £100 (€109.99) earned over £50,000 (€54,997.03*). In households where one parent earns more than £60,000 (€65,996.43*), no Child Benefit is received.

Parents or carers who are responsible for children under the age of 16 (or under the age of 20 and in eligible education and training) may also receive Child Tax Credits or other benefits, depending on their circumstances.

Further information is available in the Child Benefit section of the UK Government’s Benefits website.

Financial support for families of pupils with special educational needs

Government support is available for families with a disabled child. This includes the Disability Living Allowance (DLA) for children under the age of 16. This weekly payment, which varies depending on the level of help a child needs, is payable to children who have difficulty walking and / or who need more looking after than a child of the same age who doesn’t have a disability.

For young people over the age of 16 who have long-term ill-health or disability, Personal Independence Payments (PIPs) may be available. Further information on help for disabled children is available from the government website, NI Direct.

If a child or young person has a statement of special educational needs which includes transport requirements, the Education Authority (EA) must provide transport support.

*Exchange rate used: €1 = £0.91, 14 December 2020.

Financial support for learners

Schools cannot charge for learning materials - these are free for all pupils.

Children in compulsory education and sixth form school students whose parents, carers or guardians receive certain state benefits are entitled to free school meals.

Milk is provided free of charge to all pupils who want it in nursery and primary schools, as well as to all pupils in special schools. Children under the age of five and in day care may also be eligible for free milk under the Day Care Foods Scheme administered on behalf of the Department of Health for Northern Ireland.

Grants to help with buying school uniform and PE kit are available from the Education Authority (EA). Access to the grants is based on similar eligibility criteria to those used for free school meals.

Details of school transport arrangements are provided under the subheading ‘Geographical Accessibility’ in the articles on the ‘Organisation of Primary Education’.

No cash benefits are available to learners during compulsory education. However, eligible students aged 16-18/19 in post-compulsory education and training may receive the Education Maintenance Allowance (EMA). The EMA is intended for young people from low-income families and makes a contribution towards the costs of participating in education or training, for example travel costs, or the costs of books or equipment. It aims to encourage young people from disadvantaged backgrounds, in particular, to continue in education beyond the compulsory phase. There are two types of allowance available:

• the Money to Learn Education Maintenance Allowance, which is for 16- to 18/19-year-old students who are studying full-time in a school sixth form (or who are attending a further education college) and are following academic or vocational courses
• the Training for Success Education Maintenance Allowance, which is for young people on the Training for Success programme (see the article on ‘Adult Education and Training Funding’ for further information).

The Money to Learn EMA is an income-assessed allowance of £30 (€33.00*) per week payable to students on eligible courses.

* Exchange rate used: €1 = £0.91, 14 December 2020.

Private education

Independent schools, sometimes known as private schools, public schools, or fee-paying or fee-charging schools, do not receive any public funding. They are funded by tuition charges (parental fees), gifts and, sometimes, the investment yield of an endowment.

Independent schools are autonomous institutions and, in managing their financial affairs, they are accountable, in particular, to the parents who pay their fees. They must also be registered with the Department of Education (DE), comply with public health and safety and other legislation, and be regularly inspected by the Education and Training Inspectorate (ETI).

Some independent schools have charitable status (i.e. are registered charities) and, as such, must abide by charities legislation. The 2019 Annual School Census from the Independent Schools Council (which represents the majority of independent schools in the United Kingdom) found that 74% of member schools had charitable status.

Most private providers of early childhood education and care (ECEC) receive some government funding for the part-time pre-school education provision that they offer free of charge to parents of children aged 3-4. To receive this funding, they must follow the requirements of the Curricular Guidance for Pre-School Education. Parents can choose to pay for additional provision on top of the free, part-time early years services they receive, or for provision for younger children.

Article last reviewed December 2020.