I may have to write to the noble Lord on that. However, he will know that, through the Education and Skills Funding Agency—the ESFA—we already deal with payments to, as I think
he said, roughly 10,000 schools. I would hope that the infrastructure that has been built to do that would allow scaling without having to increase staff in a direct proportion. However, I will write to him to clarify that.
Specifically regarding local authorities, there is a key interaction between schools and high-needs funding, which we are consulting on. The House will be aware that funding for high needs is increasing by £1 billion this year to a total of over £9 billion, which is an unprecedented investment in this area. Once we move to a direct national funding formula, local authorities will no longer calculate a local schools formula or transfer funding from the schools block to high needs. Clause 40 provides a new national-to-local budget reallocation mechanism from schools to high needs.
The Secretary of State will make final decisions to ensure national consistency, while still taking account of local circumstances. That could not occur if decision-making was left to 150 local authorities. Local authorities will still retain a key role in this process. They will initiate requests for funding transfers, setting out their rationale, and will consult with local schools. Overall, we think this strikes the right balance and aligns with the wider reforms in the recent SEND and AP Green Paper.
I hope that I have convinced your Lordships that the direct national funding formula will allow us fairly, consistently and transparently to fund schools on the basis of their needs. I ask the noble Lord, Lord Hunt, to withdraw his Amendment 79 and I hope that other noble Lords will not move theirs.