Agenda item

(To receive a report from Mark Popplewell, Head of Finance, Children's Services, which provides the Schools' Forum with a summary of the updates from the Department for Education relating to the national funding formula for schools, central school service and high needs for 2019/20)

Consideration was given to a report from Mark Popplewell, Head of Finance, Children's Services, which provided the Schools' Forum with a summary of the updates from the Department for Education (DfE) relating to the national funding formula for schools, central school service and high needs for 2019/20.

In guiding the Forum through the report, the Head of Finance, Children's Services made reference to the background behind the national funding formula for schools, details of which were shown on pages 17/18 of the report presented.

The Forum was advised of the main school funding announcements made by the DfE on 25 July 2018.  The key points were shown on pages 18/19 of the report. 

Particular reference was made to:

·         That LAs would continue to determine local formulas to 2020/21.  It was highlighted that the original 'soft' transition period was previously due to end in 2019/20;

·         The three key aspects of the schools national funding formula:

Ø  The government would provide for at least a 1% per pupil increase for each notional school allocation in 2019/20 through the national funding formula compared to their 2017/18 baseline.  The DfE had introduced a new funding floor factor to enable LAs to mirror the increase of 1% per pupil against 2017/18 baselines;

Ø  The minimum per pupil funding levels had increased to £3,500 for all primary schools and £4,800 for all secondary schools that had pupil in years 10 and 11;

Ø  The gains cap had increased so that schools could attract gains of up to 6.09% against their 2017/18 baselines.  The DfE had used compounded figures so that underfunded LAs could gain a further 3% on top of the 3% gained in 2018/19.

·         Reduction of the primary low attainment factor monetary value to £1,022 (from £1,050);

·         That's schools would continue to receive funding based primarily on the preceding October census data;

·         That LAs had the flexibility to set the Minimum Funding Guarantee (MFG) between minus 1.5% and plus 0.5% per pupil;

·         That the growth funding would be allocated to LAs using a new formulaic method based on lagged growth data, as opposed to LAs setting an agreed budget annually to meet local needs;

·         That the LA would continue to be responsible for setting the mainstream school funding formula for all Lincolnshire schools including academies in 2019/20.  It was noted that it was crucial that the overall funding delegated to schools was affordable based on the allocation made through the Schools block of the Dedicated Schools Grant (DSG) to the LA from central government.  It was noted further that there were a number of uncertainties as a result of the use of lagged data in determining the LA Schools block allocation;

·         It was highlighted that schools funding levels from 2020/21 would be subject to the decision taken at the next spending review, which would impact the speed schools gained and the downward trajectory of funding for losing schools;

·         That the (DSG) would continue to comprise of four blocks: Schools, Central School Services, High Needs and Early Years Block.  It was noted that the DSG remained a ring-fenced grant that could only be used in accordance with the School's and Early Years Finance (England) Regulations.  It was highlighted that LAs were able to transfer up to 0.5% of their Schools block funding to an alternative block with the agreement of their respective Schools Forum following consultation with all schools and academies.  Details relating to the Lincolnshire's School block rates for 2019/20 were shown on page 20 of the report;

·         The Forum was advised that the Central School Services block funding covered two distinct elements which were ongoing responsibilities and historic commitments.  It was noted that allocations provided by the government for ongoing responsibilities identified Lincolnshire as continuing to have a marginal increase in funding for 2019/20 by 1.3%.  It was noted further that the government's expectations relating to historical contracts and other commitments would reduce over time as they reached their end points.  It was highlighted that the LA position for broadband provision was outlined in Item 7, which was later in the agenda.  The Forum was advised that all schools would continue to receive the core broadband services up to 31 October 2022;

·         The Forum was advised that the basic structure of the High Needs national funding formula in 2019/20 was not changing.  Figure 5 on page 22 detailed the structure of the High Needs funding formula for LAs.  The report highlighted that for 2018/19, Lincolnshire was in receipt of £38 per pupil (or £5.201m) of protection funding; and that Lincolnshire's indicative protection was planned to be £41 per pupil (£5.776m) in 2019/20 and an overall High Needs block increase in funding of £1.232m compared to the current year budget;

·         The Forum was advised that the DfE were reviewing hospital education spending and data to develop a new formulaic hospital education factor in the high needs national funding formula, which was designed to better respond to meet the number of patients needing education; and

·         The report highlighted that for the Early Year block, Lincolnshire was funded at the 'minimum funding rate' of £4.30 per hour.  It was noted that the Early Years block covered the 15 hours 3 & 4 year olds entitlement; the additional hours for working families up to 30 hours; disability access fund; early year's premium and disadvantaged 2 year old funding.  It was highlighted that the DfE had confirmed its intention to continue with the 'supplementary funding' until at least 2019/20 for nursery schools, whilst research was undertaken on the cost structure.

RESOLVED

That the National Funding Formula for Schools update for 2019/20 be noted.