Agenda item

(To receive a report from Elizabeth Bowes, Strategic Finance Manager, Schools Finance Team, which provides 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 services, high needs and early years for 2022/23)

The Chairman invited Elizabeth Bowes, Strategic Finance Manager, Schools Finance Team to present the item, which provided a summary of the updates from the Department for Education (DfE) relating to the national funding formula for schools, central schools services, high needs and early years for 2022/23.

The Forum noted that 2022/23 was the final year of the £14bn investment in primary and secondary education announced by the government in 2019.  It was noted further that at the moment, the local authority was the decision-maker on the funding formula within the DfE funding framework and that the local authority had replicated the formula since its introduction in 2019/19.  However, in 2021/22, although the local authority was able to replicate the formula in terms of monetary value, Lincolnshire had to set the minimum funding guarantee at half of a percent due to the increase in free school meals, as a result of the pandemic, in order to ensure the formula was affordable.

It was reported that in July 2021, the DfE had announced their funding intentions for 2022/23.  It was highlighted that the dedicated schools grant would continue to consist of four blocks which were the schools block; central schools services block; high needs block; and the early years block.  Details of the provisional allocation for 2022/23 were detailed on page 24 of the report pack.

The Forum was advised that the schools block was calculated by aggregating schools' national allocations under the national funding formula with a separate rate for primary and secondary for each local authority.  The report highlighted (at the top of page 25) that Lincolnshire's position had continued to improve but was still below the national average.

It was noted that changes to the formula within the schools block were detailed on pages 25 and 26 of the report pack.  Some changes highlighted included that the key formula factors would be increased by 3%, the free schools meals would be increasing by 2%; the minimum per pupil funding levels would increase to £4,265 for primary schools and £5,525 for secondary schools; that every school would attract an increase in their pupil led funding of a least 2%, that the local authority would continue to set the minimum funding guarantee between 0.5% and 2%, the rate would be subject to affordability; that following the rates consultation the methodology for paying rates bills would be changing for all schools and academies; that further financial support would be provided to small and rural schools through an increase to the monetary value of the Sparsity Factor; that free school meals funding would be based on the October census rather than the preceding January (Appendix A to the report provided funding comparison information relating to the national funding formula factors from 2021/22 to 2022/23); and that for 2022/23, as there were minimal changes to the formula, and the Forum had agreed in the past to replicate the NFF, if the local authority was able to replicate the funding formula in full with no funding issues, there would not be a requirement to consult.

For the central school services block the Forum noted that funding would continue for the two elements: on-going responsibilities and historic commitments.  Further details of the on-going rates were showed on page 27 of the report which included a further reduction in the historical element of the funding by a further 20%..

It was highlighted that within the high needs block, the provisional allocation for 2022/23 had increased by £7.630m to £110.294m.  This increased funding was welcomed by the local authority, however, budget setting and detailed trajectory work was still needed to be undertaken in the autumn to substantiate the requirements of the high needs spending, as there continued to be concerns regarding long-term affordability of the high needs block.

It was noted that information regarding the early years block was expected in the autumn; and that updates to nursery schools funding had still not been published by the DfE.

The Forum noted further that the pupil premium would continue for 2022/23, however, rates were still to be confirmed.

In conclusion, the Forum was advised that the funding announcements were positive news for Lincolnshire schools for 2022/23.  Page 29 of the report provided the Forum with details of the next steps, which included that the local authority was still awaiting receipt of the modelling tool to allow officers to undertake financial modelling and to fully understand the impact of the funding announcements as detailed in the report presented.  It was highlighted that the local authority had also provided a response to the DfE’s initial consultation on the next stage of reforming the formula, the DfE direction of travel was to remove local decision-making powers, however, the local authority was not in favour of such a move due to the vital role local authorities make in the setting of the formula to meet local needs.

The Chairman extended thanks on behalf of the Forum to the Strategic Finance Manager, Schools Finance Team for her presentation.

RESOLVED

That the National Funding Formula for Schools – Update 2022/2023 report as presented, be noted.