Isolation Index: What the changes mean for schools and kura

How the Isolation Index applies to funding

The Isolation Index determines eligibility and affects funding calculations for the operational grant components Targeted Funding for Isolation and the Property Maintenance Grant (isolation component). It is also used for 5 Year Agreement Funding and the Voluntary Bonding Scheme.

From January 2023, a new formula is being used to calculate Targeted Funding for Isolation.

The old formula included a per-pupil component. However, this resulted in smaller, more isolated schools receiving less funding than larger, less isolated schools. We also heard from the sector that isolation costs do not increase with roll size, instead, it was ‘smallness’ that compounded isolation problems. From 2023, eligible schools will receive Targeted Funding for Isolation based on a base rate and their isolation alone, and no per-pupil amount.

More information

Operational funding

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