You are on page 1of 5

Specific Grants Review Group Date: 24th May 2012

Agenda Item 3

REPORT TITLE: SCHOOL FUNDING REFORM 3rd Consultation Report by Yannick Stupples-Whyley Contact details: Telephone (01245) 433171; e-mail: yannick.stupples-whyley@essex.gov.uk 1. Purpose of report

1.1 To update the SGRG on the latest consultation on School Funding Reform and to outline the process to review the Essex Formula for Funding Schools 2. Recommendations

2.1 To note the requirements of the 3rd Consultation on School Funding Reform. 3. Relevance to Strategic Plans

3.1 The Schools Budget supports the strategic objectives of the LA around the childrens agenda. 4. Finance Implications

4.1 The consultation is concerned with simplifying local funding formulae before moving to a national funding formula in the next spending review. 4.2 From 2013/14 the Dedicated Schools Grant (DSG) will be split into three notional blocks, the Schools Block, Early Years Block and High Needs Block. 4.3 The Schools Block includes the delegated budgets of primary and secondary schools and all central services funded by DSG that are not focussed on high needs pupils, for example school specific contingencies, licences and subscriptions, public duties, support for minority ethnic pupils and combined services. 4.4 LAs are currently allowed to retain DSG to fund central services that support schools. Any funding that falls within the Schools Block must in the first instance be delegated to schools. Where the Authority wishes to continue to provide central services, schools must agree through Schools Forum and then schools will pass funding back to the Authority.

4.5 School Funding Regulations currently allow the use of 37 formula factors. In distributing the notional Schools Block, LAs will be allowed to use 10 factors: A basic per pupil element Deprivation Looked after Children Low cost, high incidence SEN English as an additional language (EAL) A lump sum Split Sites Rates PFI contracts London Weighting

4.6 There will be only 1 Key Stage funding rate for primary schools but the consultation seeks views as to whether there should remain separate rates for Key Stage 3 and Key Stage 4. 4.7 The DfE are considering setting a minimum threshold for the basic entitlement or pupil led factors and seeks views on the threshold to adopt. 4.8 LAs will only be able to use free school meals, IDACI or a combination of both for distributing deprivation funding. If IDACI is used a banding system is proposed so that funding is targeted at pupils with a high IDACI score. The consultation seeks views on the proposals for banding. 4.9 LAs will only be allowed to apply a single lump sum for all primary and secondary schools. It is proposed to set an upper limit at a level that is no higher than needed to ensure that efficient small schools are able to exist where they are genuinely needed. The consultation seeks views where the upper limit should be set between 100,000 and 150,000. 4.10 Funding for low cost, high incidence SEN will calculated using prior attainment recorded by the Early Years Foundation Stage Profile and Key Stage 2 results. 4.11 A new pro-forma will need to be completed detailing the new formula and will be submitted to the Education Funding Agency. The EFA will use the pro-forma to fund Academies. 4.12 It is proposed that Free Schools, University Technical Colleges and Studio Schools will be funded by the same formula in 2013/14. The consultation seeks views as to what information is needed for the proposers to check viability and plan effectively. 4.13 The minimum funding guarantee will continue at -1.5% in 2013/14 and 2014/15 but the calculation will be simplified.

4.14 School Forum arrangements will be changed. The requirement to have a minimum 15 members will be removed and a limit will be placed on local authority attendees. Schools Forum must hold public meetings. The EFA will be given observer status. 4.15 Delegating the Schools Block to schools primarily will remove the need for LACSEG. 4.16 DSG will move to being funded on the January Census to being funded on the October Census. This will allow the final allocation to be confirmed in December rather than June. 4.17 Pupil Premium will continue as a separate grant in 2013/14 and 2014/15. 4.18 The High Needs Block will consist of funding for Special Schools, SEN Statements and all SEN related centrally retained services, for example Independent Special Schools, PRUs, Recoupment and SEN Support Services. 4.19 The consultation seeks views as to the ways in which commissioners can ensure responsibilities and arrangements for reviewing pupil and student progress and provider quality can be managed without creating undue administrative burdens. 4.20 Funding will be based on the agreed number of places under a place-plus approach Element 1 core education funding Element 2 additional support funding Element 3 top up funding

4.21 Under the place-plus approach all mainstream providers will receive Element 1 (basic per pupil entitlement) and Element 2 (notional SEN budget) through their standard funding. Schools will be expected to fund the first 6,000 of additional education support required by each pupil. Top up funding will be received to meet the needs of each pupil. 4.22 Maintained Special Schools will receive funding covering Elements 1 and 2 of 10,000 for each planned place. Top up funding will be based on the assessed need of individual pupils. Special Units and resourced provision within mainstream schools will also receive funding covering Elements 1 and 2 of 10,000 with top up funding based on the assessed need of individual pupils. 4.23 Pupil Referral Units and Alternative Providers will receive funding covering Elements 1 and 2 of 8,000 for each planned place. Top up funding will be based on the assessed need of individual pupils.

4.24 The consultation seeks views as to whether there are ways to ensure a smooth transition to the reformed approach for high needs pupils. 4.25 The consultation seeks views as to whether 8,000 per planned place is appropriate for alternative providers. 4.26 The consultation is also seeking views on calculating pro rata top up payments for short term placements, funding hospital education and reviewing and adjusting the number of places in specialist settings. 4.27 The Early Years Block will consist of funding through the Early Years Single Funding Formula, early years contingency and central expenditure on under 5s. 4.28 There will be no substantial changes to the EYSFF as the funding system is relatively new. Essexs EYSFF is very simplistic and requires no changes. 4.29 LAs are currently funded for their actual three year old take up of the free entitlement or 90% of the three year old population, whichever is the higher. This 90% floor will be removed in 2014/15 and 2013/14 will be used as a transition year. Essex currently benefits from the floor and this provided an additional 3.392 million DSG in 2012/13. The consultation seeks views as to how transitional protection for 2013/14 might operate. 4.30 The consultation seeks views as to whether LAs should fund free early education provision in Academies. 5. Other Resource Implications

5.1 The DfE has set out the steps LAs must undertake in reviewing the Formula for Funding Schools. 5.2 Between now and the end of June the LA will work with the Formula Review Group to determine the new formula and to undertake detailed financial modelling. 5.3 A proposed consultation document will be brought to the next Schools Forum in July and then a consultation will be held with all schools and academies. 5.4 Any required reconstitution of Schools Forum must be completed by July. 5.5 By the end of October, LAs must submit a pro-forma detailing their new funding formula to the EFA. The EFA has the authority to request changes if it is not satisfied with the new formula. 6. Background

6.1 The Department for Education consultation runs from 26th March to 21st May. 4

6.2 Two previous consultations were held in 2011, Rationale and Principles and Proposals for a Fairer System. 7. Consultation with stakeholders

7.1 Consultation will be held with all schools and academies. 8. Background / Supporting papers.

You might also like