Transcript Slide 1

School Funding Reform:
Arrangements for 2013/14
Gordon Shinn
Andrew Minall
Schools Forum
9 July 2012
17/07/2015
1
Outline
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Reminder of DfE aims and consultation
Reform details announced 28 June
High Needs
Early Years
Schools Block
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De-delegation
Modelling principles, options, early analysis
Timescales
Consultation process
• Schools Forum reforms
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Key DfE aims
• New local formula from April 2013 - new national funding
formula during the next spending review period
• Minimum Funding Guarantee of -1.5% per pupil will continue
for 2013/14 and 2014/15. (Primary, Secondary, Not Special)
• Changes to the operation of Schools Forums and an overseeing
role for the EFA.
• Three notional blocks for DSG – Schools, Early Years, High
Needs
• Consistent funding arrangements for pupils and students with
high needs from birth to 25, using the place-plus methodology.
• No major immediate changes to Early Years funding.
• Principle of maximum delegation to schools
• Simplifies academy funding – no more LACSEG, time lag
reduction (to 5 months)
• Consistency, fairness and transparency
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Simpler formula requirements
• October pupil count for primary and secondary schools –
currently January
• ‘Allowable factors’ reduced from 30+ to 10 (8 for HCC) - will
retain flexibility based on:
1) a basic per-pupil entitlement (primary and KS3/KS4 or
secondary);
2) deprivation measured by FSM and/or IDACI;
3) looked after children;
4) lower cost SEN using low attainment proxy measure;
5) EAL for 3 years only after the pupil enters the system;
6) a lump sum of limited size between £100k and £150k ;
7) split sites;
8) rates.
• NB Two additional factors now added
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Our key consultation issues
• Maximise lump sum to protect small schools
• No more whole budget protection for primary and
secondary
• All 4 key stages to have differential amounts
• The new SEN and deprivation indicators will cause big
gainers and losers
• Lose all premises characteristics apart from rates and an
application to EFA for high rent cases
• Growing schools funding can only continue for primary
schools
• No protection for falling rolls
• Turbulence, service families – no provision
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DfE announcements 28 June
• No minimum threshold for funding allocated through the basic
entitlement for pupil-led factors (review for 2014/15)
• New ‘growth fund’ allowed
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previously part of contingency and subject to de-delegation
now allowed separately to include all schools and academies
Ring-fenced for basic need
Schools Forum to agree criteria
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No split KS1/KS2 – re-directs funding from infant to junior
Different rates for KS3/KS4 allowed – not included in model
Additional (6th) band on IDACI – minimal impact
Low cost, high incidence SEN – EYFSP threshold of 73 or 78 points
allowed (only 78 before)
• EAL – separate rates for primary and secondary – distributional
impact
• Lump sum - £200,000 maximum allowed (£150,000 proposed) –
Currently for HCC – Primary £117,000, Secondary £287,000
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DfE announcements 28 June
• Two new factors:
– Post 16. where local authorities have used DSG for sixth forms
in the past, they will be allowed to honour this commitment in
2013/14. No new commitments or increases in expenditure will
be allowed. Not relevant for HCC
– Pupil mobility: local authorities will be able to apply a factor
based on the number of pupils entering schools at specific nonstandard entry points, termed ‘pupil mobility’. This factor will
cover schools with a high pupil mobility who incur extra costs as
a result. (based on starts in last 3 academic years)
• Deferred entry (Year R). DSG uplift to reflect difference in no. pupils
at October and January counts (previous year)
• Two new ‘exceptions’ allowed:
– Equal pay back pay
– Non-SEN places in independent schools
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Funding for high needs pupils
• Introduction of “place-plus”, a consistent approach to funding
provision for high needs pupils and students from birth to 25,
made up of three elements
– Core funding (mainstream unit of funding)
– Additional support funding
– Top-up funding
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The base level of funding will ensure that specialist and mainstream
settings are funded on an equivalent basis for high needs pupils and
students placed there. The base level of funding for specialist SEN and
LDD placements will be £10,000, for Alternative Provision it will be
£8,000.
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In mainstream schools the additional support funding of up to £6,000 a
child will come from the notional SEN budget in budget shares.
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Diagram of SEN 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
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.
Element
3: Top-up
funding
Mainstream Per Pupil funding
(AWPU)
Element 2 :
Additional
support
funding
Mainstream settings
"Top-up" funding from the commissioner to meet the needs of
each pupil or student placed in the institution
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SEN & High Needs Pupils
• Currently 25% of Special Schools delegated budgets are
on lump sum and school specific bases
• It seems as though school based top-up figures, as well
pupil needs ones, could replace these so minimising
gainers and losers
• Major challenges in fitting special unit and special school
funding into one banding framework
• Low incidence / High incidence distinction replaced by
cost one
• Balance of deprivation and low attainment in notional
SEN budget will be important and not easy
• Education centres start full delegated management on
“place plus” with some sort of transition from current
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SEN & High Needs Pupils - Progress
• Discussions with special schools and
schools with special units – working
parties
• Model for top-ups being refined
• Concerns over premises factors allayed
• Consultation until October (detail not
required on EFA return)
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Early Years
• Consultation
– Deprivation based on child rather than setting
– Scrapping of 90% floor for 3 year olds in 2014/15, transition in
2013/14 (£1m pressure)
• MFG – Optional
– EYSFF base rates cannot be reduced by more than 1.5%
– Only the per hour ‘base rate’ included in MFG i.e. no
supplements or lump sums
• Funding floor
– reduce to 85% or
– Reduce amount LAs receive through the floor by 50% (£500k
pressure)
– Further analysis by DfE in time for budget prep
– Complete removal in 2014/15
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Schools Block
Central Services & De-delegation
• Services affected by de-delegation choice for primary and
secondary schools voting separately
– Contingencies – previously included pupil growth
– Licences / Subscriptions
– Ethnic Minority and Traveller Achievement Service (EMTAS)
– Behaviour Support teams
– Special staff costs -Trade union duties, suspensions,
headteacher conferences
• No de-delegation possible for special schools or education centres
• Have to devise formula anyway for Academies
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Central Services & De-delegation
• Discussions with Primary & Secondary
Heads
• Broad agreement on proposals
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De-delegate in accordance with the schedule
Annual review
Quality assurance
Central retention of miscellaneous services
• Growth fund – can now treat growing
schools provision outside of scope of dedelegation (Pri £1.8m, Sec £111k)
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New Formula principles &
current modelling assumptions
• Key principles
• No redistribution of funding between phases
• Current total amounts of funding across all factors remain
constant (see table at 5.2, paper 9a)
• Key assumptions
• No account taken of the delegation or de-delegation of
centrally held items not delegated in 2012/13.
• Existing NOR data used – no modelling on future changes
• MFG (-1.5%) and caps on gains not yet calculated
• The 2012/13 one-off funding of £29.50 per pupil has been
excluded from the totals as it is not ongoing
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Modelling options
• Applies to all schools including academies
• ‘Best fit’ to current funding (uses current
FSM/IDACI budget split for deprivation)
• Options on deprivation:
– FSM N.B. Impact of Universal Credit in Sept 2013
– IDACI
• Use of DfE data sources
• Lump sum - £150k/£200k
• MFG not applied – too many outstanding
variables
• DfE data (e.g. mobility, low attainment) and new
model not available until mid/end July
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17/07/2015
+ Greater than 500
+ 400 - 500
+ 300 - 400
+ 200 - 300
+ 150 - 200
+ 100 - 150
+ 75 - 100
+ 50 - 75
+ 25 - 50
+ 0 - 25
- 0 - 25
- 25 - 50
- 50 - 75
- 75 - 100
- 100 - 150
- 150 - 200
- 200 - 300
- 300 - 400
- 400 - 500
- Greater than 500
No of Schools
‘Original’ – Primary £
Primary Original Comparison of Lump Sums - £
140
120
100
80
Original £150k Lump Sum
60
Original £200k Lump Sum
40
20
0
Bandings 000's
17
17/07/2015
+ Greater than 500
+ 400 - 500
+ 300 - 400
+ 200 - 300
+ 150 - 200
+ 100 - 150
+ 75 - 100
+ 50 - 75
+ 25 - 50
+ 0 - 25
- 0 - 25
- 25 - 50
- 50 - 75
- 75 - 100
- 100 - 150
- 150 - 200
- 200 - 300
- 300 - 400
- 400 - 500
- Greater than 500
No of Schools
‘Original’ – Secondary £
Secondary Original Comparison of Lump Sums - £
14
12
10
8
6
4
2
0
Original £150k Lump Sum
Original £200k Lump Sum
Bandings 000's
18
17/07/2015
+ Greater than 15%
+ 10 - 15%
+ 7 - 10%
+ 5 - 7%
+ 3 - 5%
+ 1.5 - 3%
+ 0 - 1.5%
- 0 - 1.5%
- 1.5 - 3%
- 3 - 5%
- 5 - 7%
- 7 - 10%
- 10 - 15%
- Greater than 15%
No of Schools
‘Original’ – Primary %
Primary Original Comparison of Lump Sums - %
70
60
50
40
Original £150k Lump Sum
30
Original £200k Lump Sum
20
10
0
Bandings
19
17/07/2015
+ Greater than 15%
+ 10 - 15%
+ 7 - 10%
+ 5 - 7%
+ 3 - 5%
+ 1.5 - 3%
+ 0 - 1.5%
- 0 - 1.5%
- 1.5 - 3%
- 3 - 5%
- 5 - 7%
- 7 - 10%
- 10 - 15%
- Greater than 15%
No of Schools
‘Original’ – Secondary %
Secondary Original Comparison of Lump Sums - %
20
18
16
14
12
10
8
6
4
2
0
Original £150k Lump Sum
Original £200k Lump Sum
Bandings
20
17/07/2015
+ Greater than 500
+ 400 - 500
+ 300 - 400
+ 200 - 300
+ 150 - 200
+ 100 - 150
+ 75 - 100
+ 50 - 75
+ 25 - 50
+ 0 - 25
- 0 - 25
- 25 - 50
- 50 - 75
- 75 - 100
- 100 - 150
- 150 - 200
- 200 - 300
- 300 - 400
- 400 - 500
- Greater than 500
No of Schools
FSM – Primary £
Primary FSM Comparison of Lump Sums - £
140
120
100
80
FSM £150k Lump Sum
60
FSM £200k Lump Sum
40
20
0
Bandings 000's
21
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+ Greater than 500
+ 400 - 500
+ 300 - 400
+ 200 - 300
+ 150 - 200
+ 100 - 150
+ 75 - 100
+ 50 - 75
+ 25 - 50
+ 0 - 25
- 0 - 25
- 25 - 50
- 50 - 75
- 75 - 100
- 100 - 150
- 150 - 200
- 200 - 300
- 300 - 400
- 400 - 500
- Greater than 500
No of Schools
FSM – Secondary £
Secondary FSM Comparison of Lump Sums - £
14
12
10
8
6
4
2
0
FSM £150k Lump Sum
FSM £200k Lump Sum
Bandings 000's
22
17/07/2015
+ Greater than 15%
+ 10 - 15%
+ 7 - 10%
+ 5 - 7%
+ 3 - 5%
+ 1.5 - 3%
+ 0 - 1.5%
- 0 - 1.5%
- 1.5 - 3%
- 3 - 5%
- 5 - 7%
- 7 - 10%
- 10 - 15%
- Greater than 15%
No of Schools
FSM – Primary %
Primary FSM Comparison of Lump Sums - %
70
60
50
40
30
FSM £150k Lump Sum
FSM £200k Lump Sum
20
10
0
Bandings
23
17/07/2015
+ Greater than 15%
+ 10 - 15%
+ 7 - 10%
+ 5 - 7%
+ 3 - 5%
+ 1.5 - 3%
+ 0 - 1.5%
- 0 - 1.5%
- 1.5 - 3%
- 3 - 5%
- 5 - 7%
- 7 - 10%
- 10 - 15%
- Greater than 15%
No of Schools
FSM – Secondary %
Secondary FSM Comparison of Lump Sums - %
20
18
16
14
12
10
8
6
4
2
0
FSM £150k Lump Sum
FSM £200k Lump Sum
Bandings
24
0
17/07/2015
+ Greater than 500
+ 400 - 500
+ 300 - 400
+ 200 - 300
+ 150 - 200
+ 100 - 150
+ 75 - 100
+ 50 - 75
+ 25 - 50
+ 0 - 25
- 0 - 25
- 25 - 50
- 50 - 75
- 75 - 100
- 100 - 150
- 150 - 200
- 200 - 300
- 300 - 400
- 400 - 500
- Greater than 500
No of Schools
IDACI – Primary £
Primary IDACI Comparison of Lump Sums - £
140
120
100
80
FSM £150k Lump Sum
60
FSM £200k Lump Sum
40
20
Bandings 000's
25
17/07/2015
+ Greater than 500
+ 400 - 500
+ 300 - 400
+ 200 - 300
+ 150 - 200
+ 100 - 150
+ 75 - 100
+ 50 - 75
+ 25 - 50
+ 0 - 25
- 0 - 25
- 25 - 50
- 50 - 75
- 75 - 100
- 100 - 150
- 150 - 200
- 200 - 300
- 300 - 400
- 400 - 500
- Greater than 500
No of Schools
IDACI – Secondary £
Secondary IDACI Comparison of Lump Sums - £
14
12
10
8
6
4
2
0
IDACI £150k Lump Sum
IDACI £200k Lump Sum
Bandings 000's
26
17/07/2015
+ Greater than 15%
+ 10 - 15%
+ 7 - 10%
+ 5 - 7%
+ 3 - 5%
+ 1.5 - 3%
+ 0 - 1.5%
- 0 - 1.5%
- 1.5 - 3%
- 3 - 5%
- 5 - 7%
- 7 - 10%
- 10 - 15%
- Greater than 15%
No of Schools
IDACI – Primary %
Primary IDACI Comparison of Lump Sums - %
70
60
50
40
30
IDACI £150k Lump Sum
IDACI £200k Lump Sum
20
10
0
Bandings
27
17/07/2015
+ Greater than 15%
+ 10 - 15%
+ 7 - 10%
+ 5 - 7%
+ 3 - 5%
+ 1.5 - 3%
+ 0 - 1.5%
- 0 - 1.5%
- 1.5 - 3%
- 3 - 5%
- 5 - 7%
- 7 - 10%
- 10 - 15%
- Greater than 15%
No of Schools
IDACI – Secondary %
Secondary IDACI Comparison of Lump Sums - %
20
18
16
14
12
10
8
6
4
2
0
IDACI £150k Lump Sum
IDACI £200k Lump Sum
Bandings
28
Modelling average winners and losers
Modelling average winners and losers
Secondary
Using £150,000 lump sum
Original
ALL IDACI
ALL FSM
Winners
No.
£
Losers
No
£
No
Spread
£
40
36
38
123,369
135,114
153,904
30
34
32
-178,153
-155,137
-195,566
10
2
6
301,522
290,251
349,470
Using £200,000 lump sum
Original
ALL IDACI
ALL FSM
41
39
40
110,167
114,914
135,877
29
31
30
-169,903
-157,830
-194,845
12
8
10
280,071
272,744
330,722
Primary
Using £150,000 lump sum
Original
ALL IDACI
ALL FSM
223
217
239
32,578
33,690
35,129
202
208
186
-32,399
-32,001
-40,667
21
9
53
64,977
65,691
75,796
Using £200,000 lump sum
Original
ALL IDACI
ALL FSM
254
248
275
29,273
30,100
31,296
171
177
150
-39,134
-38,346
-51,676
83
71
125
68,406
68,446
82,972
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Modelling issues/outcomes
• Key issues-
– Numbers of pupils
– Deprivation
• Differences in deprivation options
– Based on £150k
– Based on £200k
• ‘Smoother’ option appears to be IDACI
• Maximising lump sum will give greater
protection to small schools
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Modelling issues/outcomes
• MFG still to be applied
• Cap on gains still to be calculated –
likely to be 1.5% to 3%
• DfE data and modelling tool awaited
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Consultation on Schools Block
and Early Years
• Consultation in September, including briefing
sessions
• All maintained schools and academies
• All early years providers in respect of EYSFF
• Model options (as agreed)
– Will be updated to include all outstanding data and decisions
• Individual school figures and MFG and caps on gains
– Available to all
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Formula modelling and options
- recommendations
• Agree modelling principles, including
approach to de-delegation and growth
fund
• Agree focus of modelling options, with
a steer towards IDACI model for
deprivation
• Agree consultation timescale September
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Timescale
• 9 July - Schools Forum agrees principles, timescales for
consultation
• 1 - 26 September – consultation with schools, early years, including
briefing sessions
• 9 October – Primary & Secondary Heads Resources Groups
• 23 October Schools Forum agrees formula (Schools, Academy and
PVI members) and de-delegation (Primary & Secondary maintained)
• 23 October (TBA) – Executive LM for CS agrees formula
• 31 October - local authorities to submit schools block pro-forma to
EFA
• 31 October consultation on high needs closes
• December – national funding figures
• January 2013 – final figures
• Feb/Mar 2013 – schools given budget shares
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Questions?
…before we move on to Schools Forum
changes…
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Schools Forum changes
• Remove minimum size rule
• Limit the number of local authority attendees from
participating in meetings
• Only schools members and PVI providers to vote on the
funding formula
• Prompt publication of papers etc. on website, and require
Forums to hold public meetings
• Primary/secondary/special and academy/ maintained
representations reflect respective pupil numbers
• Require PRU (Education Centre) representation
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Schools Forum changes
•Retain total membership at 38
•Based on numbers at September 2012
– 4 Academy representatives required (pref 2
head teachers, 2 Governors)
– 1 PRU representative
•Named substitutes required
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Schools Forum changes recommendations
•Representative groups to agree School
Forum members (including nominated
substitutes), based on 1 September 2012
status – by late September
•Nominations for Academy members to be
confirmed by Academy Governing Bodies
– by September
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Questions?
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Acronyms
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AP – Alternative Provision
AWPU – Age Weighted Pupil Unit
DCLG – Department for Communities and Local Government
DfE – Department for Education
DSG – Dedicated Schools Grant
EAL – English as an Additional Language
EFA – Education Funding Agency
EYFSP – Early Years Foundation Stage Profile
EYSFF – Early Years Single Funding Formula (known as SEYFF locally)
EMTAS - Ethnic Minority and Traveller Achievement Service
FSM – Free School Meals
HCC – Hampshire County Council
IDACI – Income Deprivation Affecting Children Index
KS 3/4 – Key Stage 3/4
LA – Local Authority
LACSEG – Local Authority Central Spend Equivalent Grant
LDD – Learning Difficulties & Disabilities
MFG – Minimum Funding Guarantee
PRU – Pupil Referral Unit (Education Centre)
PVI – Private, Voluntary or Independent
SEN – Special Educational Needs
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