Funding for hospital education is included in a local authority’s high needs funding allocation, which also supports other forms of alternative provision for pupils who cannot receive education in mainstream schools, and provision for children and young people with special education needs and disabilities. It is for local authorities to determine how to spend their high needs funding on the children and young people who require specialist provision, including education for those in hospital.
The following table shows the total high needs funding allocated to local authorities since 2013-14.
High needs block of the dedicated schools grant (DSG)
In 2017-18, local authorities planned to spend £72 million of their high needs funding on hospital education.
Since 2018-19, the amount of high needs funding each local authority receives is determined by the high needs national funding formula. The national funding formula includes an amount for hospital education, which is currently on the basis of 2017-18 planned spending, plus a 0.5% uplift in 2018-19 and a 1% uplift in 2019-20. The hospital education funding in 2018-19 totals £73 million and the provisional hospital education funding in 2019-20 is £76 million.
It is our intention to replace this reliance on local authorities’ planned spending in 2017-18 with a formulaic hospital education factor that takes into account both local authority spending data and NHS patient data, therefore better responding to the number of patients needing education in each local area.
The Secretary of State has conversations with other Cabinet Ministers, on a number of issues, on a regular basis. Department for Education officials have worked with officials in the Department for Health and Social Care and the NHS to develop a hospital education factor in the national funding formula.
 The increase between years also includes additional funding, provided as a result of the process in which local authorities can apply if there has been a change in the medical provision in their area.