A new approach to funding education – a proposal from f40

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Transcript A new approach to funding education – a proposal from f40

A new approach to education
funding – a proposal from f40
Briefing for MPs
3rd February 2015
The formula - purpose
To demonstrate that:
• A formula approach to funding education is
• The current distribution is seriously flawed
and unfair
F40 believes that the model achieves these aims, is fair,
based on reasonable assumptions and can be defended
against challenge
The starting point
• Government distributes £39bn for education
through Dedicated Schools Grant (DSG). DSG has
3 blocks: schools, early years, high needs
• Basis for the distribution is historic
• Government has acknowledged that school
funding is unfair
• No national funding formula in this parliament
• But additional £390m in 2015/16
Key features of the formula
• Based on 2014-15 funding
• Retains the current Dedicated Schools Block structure –
schools, early years, high needs
• Allocates funding to local authority level i.e. not to
individual schools
• Full local discretion on shifting funding between the
• Formula for each block (but in effect one big formula)
• Takes no account of current patterns of spending, or of
early years or high needs provision
How it works - The Schools Block
• Core costs:
– Core entitlement – based on standard class cost
– Lump sum – based on ‘normal minimum’ school size
for primary (60 pupils) and secondary schools (600
– Sparsity – based on current DfE model pending
further work
• Pupil specific:
– Deprivation
– SEN/prior attainment
– English as an additional language
The Core Entitlement
Basic class cost
Standard learners per teaching
Class cost per pupil
Leadership cost per pupil
Key Stage 1/2
Key Stage 3
Key Stage 4
Exam fees per pupil
Other costs per pupil
Total core entitlement per pupil
The lump sum
Additional cost of headteacher over
standard size school (210/900
Administration and finance
Premises and supplies and services
Additional half class
Total lump sum
Normal minimum school size
How it works – Early Years
The formula:
• £4.68 for each 2 year old
• £3.90 for each 3 and 4 year old
• Allowance for deprivation using EY Pupil
premium data. = 3% of total
Takes no account of provision e.g. maintained
nurseries or other costs charged against the EY
How it works – High Needs
• Interim proposal pending completion of the
DfE research commissioned from ISOS
• Based on PriceWaterhouseCooper work 2009
• The formula:
– Pupil numbers 51.4%
– Prior attainment 33.9%
– Deprivation 14.7%
NB f40 believes this formula weights prior attainment
and deprivation too highly
The Impact
• Range of winners and losers – from around
+10% to around -20%
• More winners (96) than losers (55) on the
schools block, and overall
• Significant redistribution from inner London to
Shire Counties in particular
• Mixed picture for outer London, Metropolitan
and Unitary authorities – reflects
inconsistencies in historic funding
Some other issues
• Employment and other costs increases 2015-16
and 2016-17. Will need additional funding
• F40 still arguing for:
– Transition to a new formula over 3 years
– Common funding year for maintained schools and
– Formula replication by Education Funding Agency to
– Rates to be removed from school funding or funded at
LA level for maintained schools and academies
• More research needed on sparsity
Where are we now?
• Meeting with DfE 21st January:
– Keen to continue working with f40
– Results consistent with DfE’s Minimum Funding Levels
used to allocate the additional £390m for 2015/16
• Next steps
Update the model to 2015/16
Flyer for schools
Update formula in light of ISOS work on high needs
Meeting with Secretary of State?
Issues for f40 areas
• Sustaining the additional money for 2015/16
• Schools facing big increases in employment
• Manifesto commitments on fair funding
• If school funding is not protected in next
parliament it will be even more important to
tackle the unfairness