Transcript DfE Template (Arial) v1.0 April 2012

High needs funding reform:
Next steps towards a fairer
system
NATSPEC Annual Residential Conference 2012:
Planning for Excellence and Sustainability
Ben Bryant
Department for Education
[email protected]
1
Introduction
 On 26 March, we published School funding reform: Next steps
towards a fairer system.
 The school funding document set out a range of reforms that will
improve current funding arrangements, including those for education
provision for pupils and students with high needs aged from birth to
25 in the school, AP and FE sectors.
 This set of slides provides additional diagrammatic illustrations of
the high needs funding reforms announced in School funding
reform: Next steps towards a fairer system.
 Full explanation of the high needs funding reforms can be found in
Chapter 3 and Annexes 5A-5C of the school funding document.
Where possible, cross-references have been provided.
2
Pre-16 funding
Academy funding
Place-led funding
The current funding system
DSG –
paid to
LAs
Inter-authority
recoupment
LA 2
INMSS
Formula funding
Post-16 funding
Post-16
funding – paid
to YPLA
DfE
Post-16 national
funding formula
Post-16 high-level
additional learner
support
YPLA
Complex
Academy funding
arrangements
Post-16 LLDD
placement budget
LA 1
SEN 16-18 Block
Grant
Three different funding
systems post-16
PRUs do not have
delegated budgets
PRU
Paid through fees
Special
school
Special
Academy
Mainst.
school
Mainstr.
Academy
FE college
ISP
•Different types of providers are funded in entirely different ways. This means that local authorities face
different levels of additional costs when placing a pupil or student.
•Post-16 provision is funded differently according to whether a young person remains in a school or enters
FE at 16. There are also three different high needs funding systems post-16 (the 16-18 SEN Block Grant, highlevel ALS, and the LLDD placement budget), each with their own rules and regulations.
•Current arrangements for funding high needs provision in Academies is complex, error-prone and
bureaucratic. As the number of Academies grows, these arrangements will become unsustainable.
•The current process of inter-authority recoupment is bureaucratic and costly. It does not foster dialogue
about a pupil’s needs, provision and progress between commissioners and providers.
3
The case for reform
Remove potential perverse
financial incentives inherent in the
current funding system
Funding arrangements in which all providers
are funded on an equivalent basis –
education provision for a high needs pupil is
funded in a comparable way whatever the form
of institution they attend.
Remove the awkward divide at 16
according to whether a young person
stays in a school or enters FE
High needs education funding pre-16 and
post-16 is brought together so as to support
the development of an integrated approach to
assessment and planning from birth to 25.
Create a sustainable long-term basis for
funding high needs pupils in Academies
and Free Schools
Avoid bureaucratic processes getting in
the way of focus on a pupil’s needs and
progress
Funding is genuinely responsive to
individual pupils’ and students’ needs –
there is greater flexibility with regard to the use
of funding, and clear, non-bureaucratic
processes that support commissioning focused
on the needs of the young person. There is
clear and transparent information about
available provision so as to improve choice for
young people and their families.
4
The High Needs Block
Local authorities will continue to
receive the Dedicated Schools
Grant (DSG). From 2013-14, this
will be split into three notional
blocks: the Schools Block, the
Early Years Block, and the High
Needs Block.
EFA
DSG will be ringfenced. This will
ensure that funding provided
through DSG is spent on the
functions for which it is meant.
The size of each notional Block
will be based on previous local
authority decisions on spend.
This does not represent what we
think should be spent by local
authorities on the relevant function.
The blocks themselves will not be
ringfenced, and local authorities will
be able to use funding flexibly
between the notional Blocks.
Local authority
Schools
Block
Early Years
Block
High Needs
Block
The notional High Needs Block will
cover funding for education
provision for high needs pupils and
students from birth to 25. This is in
line with the proposals set out in the
Green Paper on SEN & disability to
introduce an integrated approach to
assessment and provision across this
age range. The High Needs Block will
be clearly identified and will be provided
so as to enable local authorities to
commission provision and use funding
to fulfil their statutory responsibilities
towards young people with high needs,
including those who are subject to a
LDA up to the age of 25.
The High Needs Block will be
constructed using 2012-13 budgeted
spend on high needs pupils and
students. This will be taken from the
2012-13 Section 251 Budget
Statements, and the 2011/12
information on student numbers and
spend on high needs students in FECs
and ISPs. We will consider whether and
how this may need to be updated.
5
Overview: Reform of high needs funding
Pre-16 SEN and AP
Element 1:
Core
education
funding
Contribution of £6,000 to
additional support required
by a pupil with high needs,
from the notional SEN
budget
Element 3:
Top-up
funding
Mainstream per-pupil
funding (AWPU)
Element 2:
Additional
support
funding
Mainstream settings
Specialist settings
Base funding of £10,000 for
SEN and £8,000 for AP
placements, which is
roughly equivalent to the
level up to which a
mainstream provider would
have contributed to the
additional support provision
of a high needs pupil. Base
funding is provided on the
basis of planned places.
Post-16 SEN and
LDD
All settings
Mainstream per-student
funding (as calculated by
the national 16-19 funding
system)
Contribution of £6,000 to
additional support required
by a student with high
needs
“Top-up” funding from the commissioner to meet the needs of each pupil or student placed in
the institution
This diagram appeared as Figure 1 (p.43) of School funding
reform: Next steps towards a fairer system
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Element 1:
Core
education
funding
Mainstream perstudent funding (as
calculated by the
national 16-19 funding
system)
Element 2:
Additional
support
funding
Contribution of £6,000
to additional support
required by a student
with high needs
Element 3:
Top-up
funding
Post-16 settings (mainstream and
specialist)
“Top-up” funding from
the commissioner to
meet the needs of each
pupil or student placed
in the institution
Post-16 high needs provision will be funded in an equivalent way across all provider types.
This budget will be provided by the maintaining local authority (for maintained schools) or the
EFA (for all non-maintained settings).
•All providers will receive an allocation of mainstream per-student funding calculated by the
national 16-19 funding formula – this recognises the different programmes of learning that
young people access.
•All providers will receive an allocation of additional support funding of £6,000 for each high
needs student placed with them. The allocation will be calculated using student numbers from
the last full academic year.
•As at present, specialist providers will be able to request that their allocations are reviewed
funding if their current number of students is significantly higher than their lagged numbers.
As such, the level up to which a post-16 provider would be expected to contribute to provision
for a high needs student will vary according to the student’s course. For a pupil on a course
costing £5,500 per year, the provider would contribute £11,500 (course cost plus £6,000). For
a course costing £4,000, the provider’s contribution would be £10,000.
Top-up funding:
•will be provided direct to the provider from the commissioning local authority;
•in or close to the real-time movement of the student; and
•will be based on the assessed needs of the student.
We will provide further information about element 1 (the national
post-16 funding system) that will enable local authorities to remodel provider budgets in terms of elements 1, 2 and 3 shortly. 7
Funding flow: Placement in a FE college
or ISP
Place-led
funding
Pupil-led
funding
EFA
EFA
Commissioning
local authority
Schools
Block
Element 1
Early
Years
Block
Element 2
FE College
Commissioning
local authority
High
Needs
Block
Element 3
Schools
Block
Element 1
Early
Years
Block
Element 2
High
Needs
Block
Element 3
ISP
FE colleges and ISPs would receive an allocation of (a) mainstream per-student
calculated by the national 16-19 funding formula and (b) an allocation of additional
support funding of £6,000 per high needs student. These allocations would be based
on the data from the last full academic year. This funding would be received by
providers direct from the EFA. Top-up funding above this level would be provided from
the commissioning local authority, using their High Needs Block.
8
Example H: Placement of a student in a
mainstream FE college
Student H is 17 years old and has
high needs. Student H has been
assessed as requiring education
provision that will cost £18,000.
EFA
Commissioning
local authority
The course that student H wishes to
study costs £4,000. The college will be
expected to meet the costs of this
course from its allocation through the
national 16-19 funding formula. The
college receives this from the EFA.
The college has also received an
allocation of additional support funding
from the EFA. This is based on the
numbers of high needs students
attending the college in the last full
academic year. From this allocation,
the college is expected to contribute
£6,000 towards student H’s
educational support costs.
Schools
Block
Element 1
Early
Years
Block
Element 2
FE College
High
Needs
Block
Element 3
The college would therefore
be expected to contribute
£10,000 towards student’s
H provision. This is made
up of (i) the cost of
student’s H course (£4,000)
and (ii) a contribution of
£6,000 towards the cost of
student H’s additional
education support.
The commissioning local
authority therefore pays a
top-up of £8,000. It funds
this from its notional High
Needs Block. Top-up
funding is paid direct to the
provider in or close to the
real-time movement of the
student.
9
Example I: Placement of a student in an
ISP
Student I is 18 years old and has
high needs. Student I has been
assessed as requiring education
provision that will cost £40,000.
EFA
Commissioning
local authority
The course that student I wishes to
study costs £7,000. The ISP will be
expected to meet the costs of this
course from its allocation through the
national 16-19 funding formula. The
ISP receives this from the EFA.
The ISP has also received an
allocation of additional support funding
from the EFA. This is based on the
numbers of high needs students
attending the ISP in the last full
academic year. From this allocation,
the ISP is expected to contribute
£6,000 towards student I’s educational
support costs.
Schools
Block
Element 1
Early
Years
Block
Element 2
FE College
High
Needs
Block
Element 3
The ISP would therefore be
expected to contribute
£13,000 towards student’s
H provision. This is made
up of (i) the cost of
student’s I course (£7,000)
and (ii) a contribution of
£6,000 towards the cost of
student I’s additional
education support.
The commissioning local
authority therefore pays a
top-up of £27,000. It funds
this from its notional High
Needs Block. Top-up
funding is paid direct to the
provider in or close to the
real-time movement of the
student.
10
Funding for specialist providers:
Allocation, review and adjustment
•Under the new place-plus approach, specialist providers will receive high needs funding elements 1 and 2.
•This funding will ensure equivalence provide some stability / predictability of funding.
•Both the “place” (elements 1&2) and the per-student “plus” (element 3) will be responsive to need, choice
and student numbers.
•As such, there will be a simple process, with clear responsibilities and transparent information, for
reviewing and, if necessary, adjusting providers’ allocations of elements 1&2 funding.
•Initial allocation – at the introduction
of these reforms, we will start from an
“as is” position.
•Post-16, this will be based on the
number of high needs students placed
by LAs in the last full academic year,
and commissioner-provider dialogue.
•Evidence-based dialogue will be a
key component of the new funding
arrangements.
•Allocation reviewed at least every
two years – to ensure elements 1&”
funding kept pace with current student
numbers and likely future trends.
•Responsibility – the review and any
adjustment would be based on
dialogue between the provider and its
commissioners. This would be fed
back to the EFA.
•This process would continue at
least every two years.
•Flexibility – there would be flexibility
so that reviews could be triggered and
carried out more frequently if required.
•Transparent and accurate
information available locally –
supporting the development of the
local offer.
•Encourage collaboration – better
planning and joint working across
sectors and across local areas.
11
To-up funding: setting the top-up and
managing the funding flow
The new funding arrangements will
introduce direct funding relationships
between commissioners and providers
in relation to the pupils commissioners
place.
Under these funding arrangements, top-up
funding will:
•be provided on a per-student basis;
•be based on the student’s assessed
needs; and
•follow the student in and out of a particular
setting in or close to their real-time
movement.
Avoiding unnecessary, bureaucratic burdens
•We would expect commissioners and providers will want to
have (and will be having already) discussions about student’s
needs, provision and expected progress.
•We would envisage there being a simple framework, with
clear responsibilities and timescales for making top-up
payments.
•This should not add unnecessary bureaucracy, and may
help to avoid delays in receiving funding for students.
•Work is ongoing with the LGA and colleagues in the sector
to determine how this would work in practice.
•We are clear we must avoid unnecessary burdens being
placed on providers.
Direct funding relationships: The process
•Assessment of a student’s needs
•Consultation with the young person and parents
•Discussion with the provider – needs, provision, expected
progress and outcomes
•Discussion of funding for the provision the student requires –
agree the amount of top-up funding (possibly with reference
to a banding framework)
•Make arrangements for paying the top-up – in or close to
real time, possibly on a termly basis
12
Next steps





The publication of Next steps towards a fairer system marked the start of a twomonth consultation period. This closes on Monday 21 May. We would welcome
your responses to the questions on which we are consulting.
http://www.education.gov.uk/consultations/index.cfm?action=consultationDetai
ls&consultationId=1817&external=no&menu=1
If you have questions about the reforms, these can be submitted to
[email protected].
A further announcement will be made shortly after the consultation period
closes. This will confirm final arrangements for funding from 2013-14. We will
make information about the timings for providing local authority and provider
initial and final allocations available in due course.
Further information about reform of the national 16-19 funding system will also
be made available shortly.
Detailed work is underway on the implementation of these reforms, both at
national and local level.
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