Agenda item

Report and appendices attached.

The Forum was asked to consider proposals for allocating Schools Block funding. Havering had adopted the national funding formula rates and the Forum would therefore need to decide the level of minimum funding guarantee and the level of cap applied to schools that would receive more funding under the formula.

Verified data from the October 2019 census would be available in December for calculation of final funding for 2020-21 and until then, all figures were based on October 2018 data. Rates (NNDR) funding had increased slightly whilst growth and falling rolls funding had reduced by £868k. The overall schools block had increased by £5.9m but until the level of additional needs to be funded in schools was available from the final data, the affordability of the overall formula would remain uncertain.

School funding options took into account that the minimum level of protection was 0.5% per pupil more than the current allocation for schools. The maximum protection level permitted by the DfE was 1.84%.

Due to the new DfE formula, the pupil growth and falling rolls fund would reduce next year from £2.5m to £1.6m. £2.5m was still needed, however, for this fund in Havering. Schools with bulge classes were protected up to 28 pupils if the bulge class did not fill. Four new primary expansions were expected in September 2020 and there were also eight expansions to be funded from previous years, seven new bulge classes and eight unfilled bulge classes from previous years. There was also one new secondary expansion expected and eight expansions from previous years.

Pressure on primary schools would be kept under review as officers wished to avoid putting in unnecessary bulge classes. Expansions could also depend on new housing developments going to schedule. Some schools were also under number and it was hoped to make further efforts to fill these. Some £254k was currently spent to assist schools with falling rolls as well as £500k support for schools with consistently low numbers in some year groups.

Other boroughs used similar formulas but there was no standard method of making these calculations. If falling rolls continued at a school, discussions would take place about capping their PAN at a lower number. Only two redundancies had been required due to falling rolls and these costs would be covered by the Local Authority.

A series of options for different levels of cap and minimum funding guarantee were presented to the Forum. A total of £178m was available to be distributed to schools and each option showed the number of capped schools and the number of schools receiving the minimum funding guarantee. The extra funding retained under each option for next year was also shown.  The Forum was also asked to agree any top up of the pupil growth/falling rolls funding and any transfer from the schools block to the high needs block.

The impact on individual (anonymised) schools was also presented and it was noted that some schools received more funding per pupil due to embedded grants or being in areas of high deprivation. The Local Authority had previously applied for the disapplication of the Minimum Funding Guarantee in order to reduce the level of embedded grants but this had been refused. A new disapplication could however still be applied for by 28 November. It was noted that information on the levels of academy reserves could not be accessed as academy accounts were published at Trust level. The Forum agreed to apply for the disapplication of funding for ‘secondary school 18’ and the two other schools with continued protection on the tabled papers with funding per pupil to be reduced over a three-year period.

The Local Authority was required to consult with schools on the options for allocation of funding. The Forum therefore agreed to consult with schools on funding options B and E as presented. Options C and D were discounted as they did not leave sufficient funds to support the falling rolls and high needs shortfalls.  It was noted that Option F was to move to the 2021-22 minimum pupil level for primary of £4,000 but would require approval by the DfE.

The Forum also agreed unanimously to transfer £500k to the high needs fund and up to £800k to the pupil growth and falling rolls fund. It was noted based on projections £0.5m would still be required for the falling rolls fund in 2020-21.

It was further agreed that a consultation with schools on the two proposed options should commence as soon as possible with responses to be considered at the Forum’s next meeting on 17 December with final ratification at the 16 January 2020 meeting. The consultation would therefore close on 9 December.