To ask the Minister of Education (i) to detail the current debt levels of schools across Northern Ireland; and (ii) to outline the current policy on schools taking on debt.

As at 31 March 2021, being the latest date for which finalised data is available, the value of accumulated deficits held by Controlled and Maintained schools was £87.3 million (across 478 schools). Similar data is not available for Voluntary Grammar and Grant Maintained Integrated schools, as these schools are separate bodies and their financial positions are reported in the individual schools’ annual accounts.

The level of schools’ accumulated deficits evidences the long-term funding squeeze on the education budget, which reduced by £229m (12%) in real terms between 2009-10 and 2019-20. £148.4m of additional funding for the schools’ delegated budget across the 2020-21 and 2021-22 financial years was secured. Despite this welcome increase in schools funding, a gap clearly remains. It should also be noted that this funding shortfall is against a backdrop of a 7% increase in pupil numbers.

Without further significant additional funding, the budget positon for our schools will continue to be extremely challenging due to the substantial cost and demand pressures which the sector now faces.

(ii) Guidance on Financial and Management Arrangements for Controlled and Maintained Schools Funded Under the Common Funding Scheme outlines the policy on Controlled and Maintained schools going into deficit. These schools must seek permission from the Education Authority (EA) prior to incurring a deficit. In relation to Voluntary Grammar and Grant Maintained Integrated schools, these schools must engage with the Department and obtain permission before entering into any long-term loan arrangements.