Agenda item

Proposed National Funding Formula Update

Presentation by Ceri Walters, Head of Commercial Finance

Minutes:

Ceri Walters delivered a presentation on the proposed National Funding Formula, highlighting the following:

 

(a)  the Education Funding Agency (EFA) have confirmed that there will be a new Central School Services Block in 2018-19, meaning that the Dedicated Schools Grant (DSG) will now be split into four blocks: Schools, Early Years, High Needs and the new block;

(b)  all schools will move to a hard funding formula in 2019-20. Prior to this there will be transitional funding available. The Schools Block will be ring-fenced in 2018-19 but there will be some limited flexibility to this;

(c)  the schools formula  will comprise the 12 proposed factors, with an additional factor for mobility. In 2018-19 they will fund growth on the basis of historic spend;

(d)  funding for Looked After Children will no longer be allocated through the DSG anymore but will be transferred to Pupil Premium Plus. The Central School Services Block will have a per-pupil formula with an additional factor for deprivation;

(e)  the EFA are proposing to include a funding floor to limit overall reductions as a result of the formula, and  a minimum funding guarantee as part of the transition towards the formula’s implementation;

(f)  the Department for Education (DfE) have published each school’s baseline funding for 2016/17 and illustrative funding if the formula was implemented in full without any transitional protections. The impact for Nottingham schools shows a total reduction of 2.6%, or an average reduction per pupil of £133.33. In real terms, bearing inflation in mind, this equates to an actual cut of 11.3%, or an average of £578.34 per pupil. 98% of Nottingham schools will see a reduction in funding;

(g)  the deadline for the consultation is 22 March 2017. The Local Authority is in consultation with parents and schools are encouraged to reply to the consultation independently;

(h)  as a part of the proposed school formula, there will continue to be a substantial deprivation factor to reach a broad group of disadvantaged children. The weighting of the low prior attainment factor will increase, as well as the total spend on English as an Additional Language (EAL);

(i)  the stage 2 consultation on the High Needs funding formula is also taking place. When fully implemented, Nottingham City would see a £5.9m (20.5%) increase in high needs funding, which is the highest percentage increase nationally.

 

The Chair commended the LA for its distribution of letters to inform parents of the proposed formula changes and to encourage them to respond to the consultation.

 

The Vice-Chair proposed that the Forum write a collective response to the consultation.

 

The Unions representative confirmed that the school-based unions have collated data, and written to all ward councillors about how their schools will be affected. They have also written to local MPs, including Lillian Greenwood who is on the Select Committee for Education.

 

RESOLVED to

 

(1)  note the information and thank Ceri for the presentation;

(2)  request a timeline for funding approvals at the next meeting, and confirm timely establishment of the finance sub-group;

(3)  write a letter the EFA in response to their consultation on behalf of the Forum by the Chair, and shared with members before sending.