Agenda – Schools Forum May 11 2012

• School Reform – what is happening and what does that mean for Leicestershire?

• Questions • The Leicestershire Consultation Response • Future membership of Schools Forum • Stage 1 Consultation

School Funding Reform: Next Steps Towards a Fairer System (?)

School Funding Reform

• Consultation issued March 2012 and builds upon earlier consultations in April / July 2011 • Introduces a new system of school funding from April 2013 • Consults on aspects of new system, not whether the new system is to be introduced • Closing date 21 May – not DfE standard 12 week • Different proposals for mainstream and special schools

School Funding Reform

• Not the expected movement to national Funding Formula – now delayed until 2015/16 at the earliest • Adopts principle that as much funding as possible is delegated to schools • Reduces formula factors • Maintains Minimum Funding Guarantee at 1.5% per pupil for 2013/14 & 2014/15 • No movement to formulaic DSG distribution to local authorities • Makes no change to the relative funding position of Leicestershire

School Funding Reform

• Moves Dedicated Schools Grant (DSG) from per pupil to three notional funding blocks; Schools / High Cost Pupils / Early Years • Establishes a role for the Education Funding Agency (EFA) in validating local formulae • Funds academies and maintained schools on the same year data • ‘Improves’ Schools Forum arrangements • Tables proposals for the replacement of LACSEG

Maintained Primary & Secondary Schools

• Reduces formula factors to 9 (10 th London fringe authorities): factor only relates to 5 • • • • • • • • • Per pupil entitlement – primary and secondary values Deprivation; FSM or IDACI Looked after children* English as additional language* Low cost, high incidence SEN A lump sum of ‘

limited size’

Split sites Rates Private finance initiative** * Not currently used in Leicestershire ** Not relevant to Leicestershire

Maintained Primary & Secondary Schools

• Expected minimum thresholds for basic pupil entitlement (options given) • Deprivation through IDACI may be ‘banded’ • Prior attainment data restricted • Lump sum between £100k - £150k and of equal value for all schools, may differentiate between primary / secondary / middle / all through schools • Rates allowable – in year adjustments now retrospective i.e. following financial year • Ratio between primary / secondary pupils – for 2014/15

Maintained Primary / Secondary Schools

• Principle that Schools Block should be delegated except where; • Maintained schools agree that a service should be provided centrally – if school phase agrees collectively • Historic commitments – no new commitments or additional expenditure allowable • Statutory functions of the local authority – no new commitments or additional expenditure allowable

Schools Forum

• No change to powers / decision making • Limits the number of local authority participants to Lead Member, DCS and those providing specific financial or technical advice • Only school members allowed to vote • Report / minutes to be published • Meetings to be open to public • Need to reconstitute by July 2012 • Potential for further changes

Academies

• Greater budget alignment with mainstream schools • Continue to be funded with local authority formula but by EFA • Funded on same financial year basis as maintained schools • Continue to be involved in Schools Forum decision making

Dedicated Schools Grant

• DSG Blocks; • Schools Block – assumed all delegated unless decision taken for centrally held and based upon October census • High Needs – includes special schools and 16-25 year olds in further education, based upon 2012/13 spend • Early years – budgets for PVI and centrally retained functions, based upon January census

High Needs Pupils

• Applies to special schools and alternative provision • Picture unclear about applicability to independent providers • A place led approach with ‘top up’ funding • All pre 16 SEN pupils ‘High Cost’ where cost of education exceeds £10,000, £8,000 for alternative provision • No formula driven budget for maintained special schools

High Needs Pupils – Special Schools/Units

• Base budget £10,000 per place • Top up funding dependant upon pupil need • SEN Units no longer receive funding through mainstream budget for places • Top up funding determined between provider (maintained special school) and commissioner (local authority) possibly on banding system • One school potentially - many commissioners • Current system of inter authority-recoupment removed

High Needs Pupils – Special Schools/Units

• Outreach, outside place led budget and centrally funded • Place numbers set initially at current number of funded places • Changes in number of places determined between commissioner and provider • Local authority gains funding responsibility for pupils aged 16-25 in FE provision

Early Learning & Childcare

• Local authorities must publish details of the formula and centrally retained early years spend • No structural changes for the formula but deprivation must be targeted on the circumstances of the child and not the setting • Local authorities to be funded by participation rather than % of population taking up provision • Funding for all early years providers to be paid through local authorities • More benchmarking on funding across areas

Timescales

• Consultation closes May 21 items for delegation) October 31 st st • Headteacher / Governor Briefings May 31 stage of consultation ( formula factors / additional • Modelling of options underway • Consultation with schools and academies June – July (including summer break) • September - Schools Forum to approve changes • October - Cabinet to approve changes • Budgets issued to schools March 2013 st – 1st • Proposals submitted to Education funding Agency

Challenges

• Complexity and level of change • Time – conflict between modelling and consultation. Non negotiable EFA deadline of 31 st October • Engaging schools, academies and Schools Forum in dialogue on options – working groups?

• Supporting Schools Forum decision making with potentially new Forum members • Expectation management

Challenges

• New ways of financial planning for special schools • Understanding current costs – high cost pupils • Establishing new commissioning framework for high cost pupil places • Capacity and resources • Communication • Developing school understanding of change and its implications

Next Steps

• Consultation response completed and approved • Programme of change established and local authority leads identified • Establish working group of Schools Forum (1 member per school phase) • Establish working group of school business managers / bursars (1 member per school phase) • Schedule meetings of Schools Forum – frequency / purpose?