Agenda item

(To receive a report from Tony Warnock, Head of Finance for Children's and Specialist Services, which provides the Schools Forum with the DFE's analysis of local authorities' (LA) school funding formulae for 2014/15)

Consideration was given to a report from the Head of Finance – Children's and Specialist Services, which provided the Schools Forum with the DfE's analysis of local authorities' (LA) school funding formulae for 2014/15.  The Forum was able to see how Lincolnshire's funding of mainstream schools compared to other LAs.

Appendix 1 provided the Schools Forum with Lincolnshire's school funding formula 2014/15 and the national position.

It was reported that a number of refinements had been made for 2014/15 and some of the key features of the current system were detailed at the top of page 12 of the report in points 1 to 6.

In June 2013, the Schools Forum was made aware of how Lincolnshire's new school funding formulae compared with other LAs.  That information was then used as context to develop the LA's response to the government's refinements to the funding system for 2014/15.

In March 2014, the DfE had published its latest analysis of LAs local funding formulae.  The LA had reviewed the DfE analysis, and the key outputs were shown in Appendix 1 attached.

In conclusion, it was reported that Lincolnshire's funding of schools was once again broadly similar to many other LAs.  However, it was noted that in Lincolnshire:

·         The Awpu values were lower than the majority of other LAs.  As most of the funding for schools had to go through the awpus, this was a reflection of the DfE's relatively low funding of the authority.  Of 152 LAs, Lincolnshire's figure for primary schools remained at the lower end of the range at £2,542;

·         That funding for deprivation appeared to be lower than the national average.  It was reported that the national variation in the percentage of funding distributed through deprivation factors was again significant, ranging from below 2%  to nearly 20%.  The largest number of LAs (33) were putting between 6% and 8% through deprivation factors.  It was highlighted that Lincolnshire was in the next largest group (27) with its 5.89% falling within the 4% and 6% band.  In conclusion Lincolnshire's level of funding through deprivation appeared to be a little below the national average;

·         The amount distributed for low Prior Attainment was at the higher end of the LA range, and was slightly higher for the primary sector.  It was reported that the amounts per pupil allocated varied tremendously.  In the primary the range was from £115 to £2,874 and in secondary from £36 to £3,229.  The comparative figures for Lincolnshire were £1,641 and £1,420 per pupil in primary and secondary respectively.  This placed the County towards the upper quartile in the primary sector and just above half way in the secondary sector;

·         The percentage of funding distributed through pupil led factors was one of the lowest in the country.  That was as a result of the need for a larger sum for small rural schools.  It was noted that factors such as basic entitlement, deprivation, Looked After Children, Prior Attainment, English as an Additional language and mobility were classified as 'pupil-led'.  The Forum was advised that for 2014/15, a minimum of 80% of the Schools block had to be allocated through these factors.  Lincolnshire was allocating 81.27% through pupil led factors and was therefore very much at the lower end of the range; and

·         That relative funding between primary and secondary sectors had remained largely unchanged for many years and was at the national average of 1: 1.27.  It was noted that lump sums ranged from £42,000 to £175,000.  It was noted further that Lincolnshire's primary lump sum of £0.115m was in the middle of the LA range, and that the lump sum for secondary was set at the £175,000 cap, which was therefore at the top of the range along with 36 other LAs.

It was highlighted that the two main areas for closer consideration that might lead to a material change in the local funding arrangements relate to the size of the lump sum/sparsity funding and the proportion of funding distributed through the prior attainment factor.  It was highlighted further that the LA's policy was to keep the local school funding formulae under review, and the LA will need to decide how to allocate any increase in the DSG that arises during 2015/16, as a result of the government's recent and provisional plans to allocate more resources to those LAs with greatest need.  Further proposals on this would be brought forward for the Schools Forum to consider in due course.

The Forum extended their congratulations to officers for an excellent report.

During debate, the Forum raised the following points:-

·         The cost of the pupil premium nationally.  The Forum were advised that in 2010/11 £30billion was spent on schools, with a further 2.5billion being spent on pupil premium by 2014/15;

·         The impact of the pupil premium and the suggestion that this was duplicating the funding available through the deprivation factor;

·         A question was asked as to where Lincolnshire was losing out.  It was reported that rurality was likely to be a key issue.  The rural schools and the pressures they faced was something the government did not appear to fully understand;

·         A question was asked about the implications if the funding became worse and whether any timescales were predicted.  The Forum was advised that government funding had been fixed beyond 2015/16.  At an earlier meeting the Forum received a report which advised that the LA may receive a share of £350m from April 2015; this would be allocated to those local authorities most in need. Lincolnshire may qualify for a 0.9% increase.  Lincolnshire was one of 62 out of 152 authorities who would qualify for extra funding.  It was highlighted that on the non-schools budget, the Council was planning for savings £90m was being planned for the four year period starting in 2015/16. 

It was suggested that there needed to be a review of Schools Forum arrangements to ensure that funds were being put into the right areas.

Some discussion was also had with regard Notional SEN and the lack of understanding and the lack of consistency the percentages of notional SEN attributed by local authorities to each formula factor.  It was noted that the LA was currently reviewing its approach to determine whether funding arrangements for Bands 6 to 8 statements needed to change from April 2015.  The Forum was advised that a report on the findings would be presented to the Schools Forum in due course.

RESOLVED

1.    That the report be noted.

2.    That a link to the spreadsheet information discussed be sent to all members of the Lincolnshire Schools Forum.