Agenda item

Presentation

Ceri Walters, Head of Commercial Finance, updated the Forum on the National Funding Formula and High Needs funding proposals for 2018/19, and highlighted the following:

(a)  the structure of the funding system from 2018/19 is:

·  the Dedicated Schools Grant will be allocated in 4 blocks (schools, high needs, early years, and central schools services), and each will be calculated on the basis of a different national formula;

·  99.5% of the schools block will be ring-fenced and must be distributed through the local formula for schools. With the agreement of Schools Forum, local authorities can move 0.5% in to other blocks;

(b)  it remains the Department for Education’s long-term intention that schools budgets should be set on the basis of a single, national formula (a hard formula). To ensure some transitional stability, local authorities will continue to set a local formula for schools in 2018/19 and 2019/20;

(c)  the city’s schools are amongst the biggest beneficiaries of the decision to invest additional funding in schools and high needs over the next two years. It will guarantee that the schools block allocation is based on a 0.5% per pupil increase in 2018/19 and 1% by 2019/20 compared to baseline funding. Previously the majority of city schools were due to receive a 1.5% per pupil funding cut;

(d)  the final proposals the following illustrative allocations:

·  a 0.06% (£1.167m) increase to the total schools block for 2018/19, compared to the consultation proposals of a 1.2% reduction £2.384m);

·  this is a shift of 1.8% (approximately £3.5m) increase in funding for the schools block based on pupil numbers at a point in time;

(e)  the proposed funding floor means that the city’s schools will continue to get significantly more than other similar schools nationally that were lower funded in the past;

(f)  based on the illustrative figures provided by the Department for Education in October 2017, in 2019/20 the city’s schools will receive £9.8m protection as a result of the 1% funding floor;

(g)  on average, the city’s schools will be getting an extra £267 per pupil through the funding floor. All but 2 schools are getting funding floor protection (1 primary and 1 secondary), but they are already gaining through the new formula;

(h)  the High Needs formula proposed in December 2016 has been amended:

·  the funding floor has been increased from 0% to 0.5% in 2018/19 and 1% in 2019/20;

·  the funding floor and the gains are being calculated on a per head of population basis;

·  later updates for some formula elements will better reflect the movement of pupils and students (the basic entitlement factor and import/export adjustments);

(i)  the High Needs national funding formula is based on:

·  basic entitlement factor - £4,000 per special school and special post 16 institution pupil/student;

·  import/export adjustments - £6,000 per high needs pupil/student;

·  historic spend factor – cash sum equivalent to 50% of 2017/18 spend baseline;

(j)  the impacts on the city include:

·  due to be the highest gaining local authority in percentage terms (23%);

·  the High Needs allocation is £6.745m higher than the 2017/18 baseline;

·  gains will be capped at 3% per head of population for at least the next two years;

·  a projected increase of around £1.049m in 2018/19 and £1.869m in 2019/20 compared to the 2017/18 baseline;

·  funding increases from 2020/21 are subject to the next Spending Review;

(k)  the timelines are:

·  schools:

o  November 2017 – open consultation on the funding formula for 2018/19 via Scene;

o  December 2017 – the result of the consultation and formula will be reported to Schools Forum;

o  December 2017 – funding will be issued, including the October 2017 census;

o  January 2018 – the budget report will be considered by Schools Forum;

o  January 2018 – the statutory returns will be submitted to the Education and Skills Funding Agency regarding schools budgets;

·  High Needs:

o  December 2017 – the basic per pupil budget will be issued updated for the October 2017 census;

o  January 2018 – the budget will be presented to Schools Forum;

o  March 2018 – import/export adjustments will be issued;

·  Early Years:

o  December 2017 – the budget will be presented to Schools Forum, and central expenditure approval will be required.