School Funding Reform

24th May 2012

Reformed Funding System• Simple and transparent to allow funding for Academies on the same basis as

maintained schools

• No changes to the DSG calculations for Local Authorities – same funding value continues

• Changes to the calculation of the DSG excludes Alternate provision and Pupil referral unit pupils

• Movement of the funding census from January to October

• Using the 2012 DSG a base rate to be funded using the October census for schools only

• Issues about duplicate pupils and pupils on AP may affect the per pupil funding level

• MFG simplified and set at -1.5% for 2 years

• LACSEG deleted but the delegation of certain funding will be required

• Ratio of primary and secondary not imposed until 2013-14 but needs to be calculated

.Islington formula

Current Proposed DFE Impact

AWPU Different rates based on ages

1 rate primary and 1 or 2 secondary

60% of funding on base allocation

Limited

Premises Sq footage Not included unless PFI or exceptional and split site

Affect on small schools in large buildings

Lump sums Different rates per phase of school

1 lump sum limit up to £150K Previous grant funding

Looked after Children

Not in formula – mobility funded separately

Data to be provided by the DFE by the end of April

Deprivation Prior attainment, FSMs, mobility, Ethnicity

FSMs and IDACI

Both Deprivation and High Incidence to be at least 80% of funding EAL limited to 3 years

Mobility and Ethnicity not permitted. Limit on EAL data may affect secondary schools

High Incidence SEN

Prior attainment, FSMs, mobility, Ethnicity

FSMs, IDACI and Prior attainment Level 3 and below in both English and Maths and FSP, for year 1 and year 7

Factors not allowed in the local formula• Roll protection

• Mobility

• Ethnicity

• Organisation

• Exceptional needs (Special)

• Threshold

• Transport (Special and PRU)

• Prior attainment other than those listed

• School Action and School Action + *

Amounts of funding for each factor

• Basic entitlement proposed 60%

• Proposed pupil led including SEN and deprivation 80% of the funding

• Current figures are overall 60% in primary and secondary

• No mention of Nursery Schools

• Special schools to be funded at £10K per place plus top ups – modelled to current budgets with allowance for a reduction of -1.5% of budgets in cash terms

Current funding Allocation Primary Secondary All Maintained Proposed Allocation

AWPUs (incl Additional Delegation) 48.02% 56.26% 50.68% Base Rate

Curriculum Protection 9.31% 1.16% 5.99% Lump sum

Free School Meals - catering 2.91% 2.11% 2.59% Deprivation

Deprivation/ AEN 4.35% 2.53% 3.61% Deprivation

Threshold 1.75% 3.08% 2.28% Base Rate

Mobility 0.15% 0.09% 0.13% Deprvation

EAL 0.30% 0.24% 0.27% EAL

EYSFF (Prim) 6.74%   N/A

Prior Attainment (Sec) 0.00% 0.72%   Deprivation

SEN - high incidence / Add'l Delegation 2.29% 3.45% 3.05% High Incidence

SEN - low incidence 4.12% 0.53% 0.53% Low Incidence

Organisation 0.11% 0.73% 0.39% Base rate and Lump sum

Premises 5.99% 5.82% 6.06% Base rate and Lump sum

less LSC elements   -0.64%   N/A

Roll Protection 0.15% 0.74% 0.46% ?

Small School Protection 0.10%     Base Rate

Previous SFs Grants13.50% 17.71% 15.16%

Deprivation % high Incidence, EAL and Lump sums

LSC Allocation   5.47%   N/A

Percentage Base Rate 55.96% 65.89% 59.41% 60% proposed

Deprivation/ AEN 20.91% 23.17% 21.49% Assumes all grant is Deprivation

SEN - high incidence / Add'l Delegation 2.29% 3.45% 3.05%  

Total Pupil Led 79.16% 92.51% 83.94% 80% Proposed

Funding which must be delegated

• Threshold funding – already delegated

• 14-19 practical learning

• Funding for meals – possible implications for universal school meals

• Extended services

14-19 to be reviewed with secondary schools and options for pooling of budgets a possibility

Funding which can be centrally retained• Allocation of contingencies

• Support for schools in financial difficulties

• Free school meal administration

• Insurance*

• Maternity*

• Licences*

• Trade union facility time

• NQT supply cover

• Behaviour support*

• Support for EMAS and underperforming groups* - £150K to be re-consulted upon

• Library Services

Centrally retained services must still have a formula for allocation based on the restricted funding allocations

*currently delegated

All delegation to be modelled within the allowable formula and excluded from the MFG

MFG to be simplified

• Total budget less

– SEN

– Lump sums

/ pupil numbers October 2012 * -1.5% - pupil numbers October 2013

MFG not to apply to Special Schools

Schools forum to agree the percentage protection to fund the expected increase in the MFG

In order to manage turbulence protection on gains is also to be agreed – new delegation will be excluded from these calculations

School Forum

• No lower limit on members – currently 15

• Right of attendance for Officers and members restricted

• Voting rights - on the schools formula only schools and PVI

• All schools and providers to be consulted on the changes to the formula for 2013

High Cost Pupils• Special school places at £10,000

• Budgets to be reworked so that top up matches the budget

• Additional data returns required for all pupils in AP and PRUs

• PRU budget delegated on a model worked as Special schools but £8000 per pupil

• LAs to decide on the level of funding provided by mainstream schools – DFE proposes £6000

• To review additional funding for mainstream schools where there are high numbers of SEN pupils

• Consultation will be required with post 16 providers as well as LA schools and Academies and neighbouring Authorities

• Recoupment will go and termly payments will be required directly to schools – much more bureaucratic

• Review of the numbers of places required from 2013 in AP and Special schools with a data return to schools

High Needs Block• Delegated budgets of

• Special Schools and units in mainstream schools

• Centrally funded provision for individual pupils

• SEN support services

• Support for inclusion

• Independent school fees - - implications for Joint agency Panels

• Inter – authority recoupment – calculations for DSG may impact on funding

• SEN transport

• Any other central budgets relating to Special schools

• Post 16 expenditure - SEN

• Additions to budgets for pupils aged 16-25 in FE colleges and ISPs

• SEN Early years

• Calculations on the numbers of funded places in high needs provision

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