Agenda item

SCHOOL AND HIGH NEEDS FUNDING 2019-20

Minutes:

Members received a report which summarised the DFE’s decision on arrangements for funding schools, high needs and central services in 2019-20, the second year of the national funding formula for schools, high needs and central services and considered the likely impact on Havering and any action that might be taken.

 

The indicative funding allocations to Local Authorities were based on the application of the primary and secondary units of funding through the National Funding Formula to October 2017 census data.

 

The provisional National Funding Formula 2019-20 schools block funding was £173,643,254, an increase of £1,434,390 on 2018-19, although this was subject to revision following the introduction of a new formula for Pupil Growth which was likely to disadvantage Havering. 

 

The rates allocation to local authorities through the premises factors was based on the 2017-18 estimates.  Since then, the rates multiplier had increased and there had been several revaluations for expanded schools, for which backdated charges of approximately £230,000 had been received during 2018-19 without the budget to fund them. The Local Authority was in discussion with the Education and Skills Funding Agency on how this and future increased costs were to be funded.

 

In line with the approach and commitments set out last year, three key aspects of the schools national funding formula were being updated in 2019-20:

 

·      Within the schools block, the government would provide for at least a 1% per pupil increase for each school in 2019-20 through the national funding formula compared to their 2017-18 baseline.

·      The minimum per pupil funding levels had increased to £3,500 for all primary schools and £4,800 for all secondary schools.

·      The gains cap had increased so that schools could attract gains of up to 6.09% against their 2017 to 2018 baselines.

 

The following policy changes had been made to the 2019-20 national funding formula:

 

·      Pupil growth funding would be allocated to local authorities on a formulaic basis.

·      The primary low prior attainment factor value had reduced to £1,022 to balance the increase in the cohort.

·      IDACI band C had been slightly increased so that it provided a higher funding rate than band D, with increases of £30 per eligible primary pupil and £45 per eligible secondary pupil.

 

The following changes had been made to the arrangements for calculating local formulas to support local authorities to mirror the national funding formula:

 

·         A new funding floor factor to enable local authorities to mirror the increase of 1% per pupil against 2017 to 2018 baselines.

·         Enabling local authorities to mirror the sparsity taper used in the national funding formula (not applicable to Havering).

·         There was no longer a need to set a weighting for primary low prior attainment because all results had been assessed under the new framework.

·         The authority pro forma tool (APT) cap now had the functionality to vary the capping and scaling to apply the alternative gains gaps used in the national funding formula.

 

The minimum funding guarantee (MFG) for schools would continue and local authorities would continue to have the flexibility to set a local MFG between -1.5% and +0.5% per pupil.

 

Pupil growth funding would be allocated to local authorities based on the actual growth in pupil numbers they experienced the previous year.  The measurement of growth would be by counting the increase in pupil numbers between the two most recent October censuses.  Protection would be applied so that no local authority’s growth allocation would fall by more than -0.5% of their overall 2018-19 school block funding. This would be a significant issue for Havering given the growing pupil population and the funding that Havering was currently able to allocate to schools with permanent expansions and bulge classes and guarantees of funding where classes do not fill. The London Councils had been made aware of the views of the Local Authority.

 

The Local Authority was exploring the option of estimating growth in the main schools’ funding formula which would mean that growing schools would receive AWPU and other per pupil funding for the additional pupils within the main formula allocation. 

 

The provisional National Funding Formula 2019-20 high needs block funding was £24,624,757, an increase of 5.8% from the previous year.  It was expected that this allocation would decrease when adjustments were made in December 2018 for the number of pupils in Havering’s special schools as at the October census and also for imports/exports.   There would be a further adjustment for imports/exports in the summer term 2019 of £6,000 per pupil.

 

Since the cessation of the Education Services Grant (ESG), the allocation of £15 per pupil for ‘retained duties’ had transferred to the Dedicated Schools Grant (DSG) as part of the Central School Services Block (CSSB).  The actual CSSB unit of funding for ongoing functions was £35.23 per pupil, an increase of 0.20% from the previous year.  Havering’s actual funding for historic commitments was £287,490 (£200,000 to support school partnerships and £87,490 for a 15 year old energy contract for three secondary schools).  The provisional National Funding Formula 2019-2020 Central School Services Block was £1,568,294.

 

The Forum approved the following:

 

 

2018-19

Budget £

2019-20

estimate £

National copyright licences negotiated centrally (approval not required)

171,443

174,475

School Admissions

496,290

496,290

Servicing of Schools Forum

43,250

43,250

Balance for central services

567,329

566,789

Total

1,278,312

1,280,804

 

Historic commitments

287,490

287,490

 

Total

1,565,802

1,568,294

 

The Forum noted the changes in the national funding formula for schools and high needs for 2019-20.

Supporting documents: