Background
The Department for Education (DfE) oversees the national school system in England and provides schools revenue funding, primarily based on pupil numbers. In 2025-26 DfE provided £48.7bn to schools in revenue funding. It also supports local authorities to meet their statutory duty of providing sufficient school places by allocating capital funding. Pupil numbers increased between 2010 and 2020 but have fallen 3% over the last five years. DfE forecasts a further 7% decrease nationally by 2030.
Pupil numbers are impacted by demographics, migration, house building and wider policy decisions. Some schools will need to reduce their fixed costs as spare spaces emerge, with pressures remaining in other local areas. DfE will need to prepare local authorities and schools to adapt, such as by repurposing classrooms, so schools can run efficiently and effectively with changing pupil demand.
Scope
This study will examine DfE’s approach to overseeing and supporting a resilient school system in England that can respond to changing pupil demand. It will examine whether DfE:
- has established clear oversight and accountability, alongside providing support, to enable local authorities and schools to manage school places
- has a good understanding of supply and demand for school places and the influencing factors
- is responding effectively to changing demand for school places
NAO team
Director: Emma Willson
Audit Manager: Elisabeth Moore and Tosin Omole