1. Mainstream School Funding Reform Stage 2 Consultations 2014/15
SAPH 21st November to at Swindon College

2. Today’s Agenda Updates on 2014/15 (Steve)
2014/15 Primary funding issues (Steve / Gill / Gareth)
Trade Union Release time (Anne)
Prospects for 2015/16 funding (Steve)

3. Updates on 2014/15
Pupil Premium
Extension of FSM entitlement
Changes to the scope of Swindon’s DSG
Post 16 update – implications for primary funding

4. Pupil Premium Funding Rates
2013/14
Service Children £300
Looked After Children £900
Disadvantaged Children;
Primary £900
Secondary £900
(DfE committed to retaining the PP but no more big annual stepped increases likely)
2014/15 £TBC? £1,900 £1,300 £935

5. Free School Meals
DfE’s Independent School Food Plan recommended that government should extend FSM entitlement for all primary school children
Pilot projects introduced in 2 LA’S (2009 and 2011)
17th Sept announcement that every child in reception, year 1 and year 2 in state funded schools and disadvantaged young people in colleges will receive a free school lunch from September 2014
£600m funding announced – details to follow later this year

6. Free School Meals - Implications
For pupils
Increased attainment
More children eating healthy foods
For DfE - Increased FSM take up by disadvantaged pupils who are already eligible will result in increased Pupil Premium costs in future years
For LAs - Increased FSM take up will trigger increased deprivation funding in local formulas in future years

7. Free School Meals - Implications
Unclear whether the additional £600m will be allocated as part of DSG (not really an education issue) or whether it will be used for capital and/or revenue costs
Need to get cash to schools to cover the costs of additional meals – unclear who, how or when?
May also need to allocate cash for kitchen & dining room extensions, cookers, dishwashers, furniture, cutlery etc. – unclear process could be via DFC?
Pilot LAs undertook kitchen audits across all their primary schools & allocated funds accordingly

8. Changes to scope of Swindon’s DSG responsibilities – Swindon Academy
DfE are removing “part recoupment” academy arrangements – this means SBC will calculate a full funding allocation for Swindon Academy from 2014/15
Good news? - providing we receive additional DSG to at least match the additional costs to the local formula but method of calculation is unclear – part recoupment issues have caused problems for us and the Academy

9. Changes to scope of Swindon’s DSG responsibilities - Croft
Croft school will not be treated as a basic need academy and will be funded entirely outside Swindon’s DSG
Good news as we have allocated £77,140 of trigger funding in 2013/14 and £86,392 in 2014/15 and future years
This has been a flip flop decision and is a return to original DfE policy regarding SBC’s financial commitments regarding Croft – TBC?

10. Post 16 High Needs Funding Update
LA officers and Chair of Schools Forum met with EFA and post 16 providers on 24th October
National budget not yet confirmed
23rd December 2013 deadline for LA submission of planned pre and post 16 high need places
DSG High Needs Block funding for 2014/15 to be confirmed in March
For 2013/14 the full year gap between costs of meeting new responsibilities and funding allocated = £1m
Fortuitous use of 2 year old surplus (£1m) in 2013/14 enabled this gap to be covered but not repeatable

11. Post 16 High Needs Funding Update
FE providers feel they have HN students which the LA will not recognise for funding (EFA support LA stance)
Historic funding paid by EFA to Swindon College (£17k) is the main issue as the cash shortfall is mainly due to the introduction of a national formula (£12k).
We also have levels of demand above our capped learner numbers in 2013/14.
EFA say door is open for LAs to submit bids for special cases – we asked for £1m this year and received only £0.350m
SBC strategy – other budgets cannot and should not be reduced to meet a 2014/15 post 16 HN shortfall

12. Swindon’s DSG position 2014/15
Still uncertainty over the value of DSG HN block nationally and LAs won’t know their funding until the end of March – two months after mainstream funding must be settled
Still anticipating a shortfall in high needs funding (pre and post 16) but LA strategy is to plan that next years HN costs must be contained within current funding levels
Therefore early years & mainstream funding should not need to be reduced – more confident that the primary £54.77 BPPE increase can be repeated for one more year in 2014/15

13. Primary Funding - Local policy and formula issues
Issues to review;
Pupil Growth - Infrastructure set up costs
Pupil Growth - when to pay set up costs
Pupil Growth - Trigger Funding options
Deferred reception admissions
Low Prior Attainment increased eligibility
Sparsity Funding

14. Pupil Growth Requirements
LAs must agree policies and values covering all pupil growth payments which must apply equally to schools and academies
There is no DSG to cover these costs as DSG is provided on a lagged basis – October 2012 PLASC determined 2013/14 DSG
All pupil growth payments are therefore funded by top slicing school budgets i.e. every school/academy foregoes some funding to create the Pupil Growth Fund

15. Pupil Growth – Infrastructure Set Up Costs
Agreement reached (SAPH/SASH/SF) to provide one-off infrastructure set up funding at £35,000 per 1FE
Clarity sought on why only some expanding schools were to receive this
Floor area criteria withdrawn – revised proposal is to pay this to all expanding schools
Extra costs of £35,000 each for Even Swindon and Orchid Vale supported by SASH – SAPH view?

16. Pupil Growth – when to pay set up costs?
Hand-out A shows projected set up costs based on current planned expansions – including Even Swindon (ES) & Orchid Vale (OV)will require a 2014/15 budget increase from £105,000 to £175,000
Option available to pay in advance from the existing DSG balance to ease pressure on future years (similar approach taken with Croft and Haydonleigh) so more DSG can be made available for schools
Both schools are happy to receive the cash up front but there is a risk that pupil numbers may not materialise – SAPH view?

17. Pupil Growth Policy - Trigger Funding
Schools Forum agreed a new policy for the allocation of trigger funding prior to the start of 2013/14
Expanding schools only (we previously also funded general pupil growth above 4%)
Expanding classes only (we previously funded net pupil increases across the whole school)
However concerns raised at Schools Forum that where pupil intakes are lower than forecast an expanding school may have additional staffing and operating costs which exceed the funding allocated – are other options possible?

18. Pupil Growth Policy - Trigger Funding
The DfE has confirmed that any policy change supported by SAPH & SASH and agreed by Schools Forum and confirmed as being within the school finance regulations by EFA can be applied to 2014/15 and retrospectively to 2013/14.
In general LA pupil forecasts have been reliable but in the current year actual pupil expansion increases were lower than expected in some schools.

19. Pupil Growth Policy - Trigger Funding
LA agreed to look at alternative models which provided guaranteed funding to ensure at least a “break even” position
Estimates are that part year costs are;
Teacher at M £31,868 x 7/ % = £23,237
TA 25 hrs (J) £8,103 x 7/ % = £5,908
Full / part yr costs £39,971 x 7/ % = £29,145
This would require at least 19 £2,645 x 7/12 BPPE = £29,300 to provide sufficient funding.
To also provide a contribution to curriculum resources the LA propose a break even position of 21 £2,645 x 7/12 = £33,400 - SAPH views?

20. Pupil Growth Policy - Trigger Funding
The existing policy follows the overriding DfE principle of pupil led funding and has been agreed by the EFA
Providing guaranteed levels of funding to ensure additional costs are met seems sensible and fair but will cost more – should we therefore provide this level of funding to all expanding schools so that no one gains?
Should we allocate funding based on the higher of actual pupil numbers or a minimum of 21 pupils?
Trigger funding typically costs approx. £700k per year

21. Trigger Funding (TF) Options
Option 1 – reception pupils only. Allocate 7/12 BPPE based on the actual number of pupils in the reception class only.
Option 2 – expanded classes. Allocate 7/12 BPPE based on the actual number of pupils in the relevant expanded form of entry (this is current policy).
2 (a) As above with a 21 pupil protection applying to the reception class only.
2 (b) As above with a 21 pupil protection in all expanded forms of entry.
Option 5 – Allocate TF based on the higher of Option 1 or 2 so that expanding classes can attract no less than part year funding for 21 pupils.
Option 6 - Should the above be reduced in any way for new schools opening in all year groups, but have smaller actual numbers in year groups that allow for mixed classes reducing the requirement for a 21 pupil per class protection.

22. Trigger Funding (TF) Options
Which of the options would SAPH prefer?
If a new policy / formula is to be implemented should this be effective from 2014/15 or should it also be retrospectively applied in the current year – SAPH view?

23. Primary Mainstream Funding
At the SAPH event we provided hand-outs which showed SBC mainstream funding compared to national and regional averages
Further analysis was presented to October Schools Forum (see Hand-out B) and LA conclusions re primary sector are;
Evidence that the 2013/14 primary BPPE increase was appropriate and should be repeated
Lump sum, LPA, EAL, and deprivation funding levels are appropriate
No proposals to change any primary funding factors for 2014/15 – SAPH view?

24. Low Prior Attainment Eligibility
Some concern at SAPH that the changes to the LPA measure would have significant implications
DfE – “EYSFP is to be retained for primary LPA (years 2 to 5) but for the cohort moving into KS1 a pupil will qualify where they have not achieved the expected level of development in all 12 prime areas of learning as well as maths and literacy”
We don’t have the data yet but this can only have a very gradual impact over the next few years as more cohorts are identified for LPA via the new measure.

25. DSG Spending Choices?
Given uncertainty over DSG funding levels the LA has tried to identify all optional spend that could more easily be curtailed in order to set overall 2014/15 budgets within the funding available
We still have a DSG balance of at least £1.16m carried forward from 2012/13 but this is only one-off funding which can’t be locked in to formulas for future years
No shortage of pressure in the system particularly high needs where funding may be frozen regardless of increasing SEN pupils – therefore lower funding per pupil in Special Schools & SRP’s expected

26. DSG Spending Choices – SAPH view?
Item
Annual cost
Disadvantaged 2 year old nursery funding – do not pay the 40p per hour retrospective supplement on top of the £4.95 hourly rate to any early years providers – SAPH view?
£150,000
Introduction of deferred reception uplift funding to provide BPPE and other pupil led funding for primary schools where reception numbers in January are higher than October (the base PLASC for annual funding) – approx. 30 pupils in 18 schools – SAPH View?
£102,000
Introduction of optional sparsity factor – further reconsideration requested by SASH in light of Schools Minister comments implying this was not envisaged for urban LAs such as Swindon – see next slide
£95,000
Cease or reduce the primary BPPE enhancement of £54.77 per pupil introduced in 2013/14 (funded from the DSG balance) based on regional benchmarking – SAPH view very clear!
£900,000
Introduce revised trigger funding policy with different cost implications – previous slides
£???

27. Optional Sparsity Factor
Extract from 4th June 2013 letter from David Laws MP describing the introduction of a sparsity factor
“The most significant change I will be introducing is a new optional sparsity factor for The review has demonstrated strong support for this from rural authorities as it will enable authorities to target additional funding to small rural schools. We will be providing local areas with a number of flexibilities in how they use the sparsity factor so that it can best meet local circumstances.”

28. Optional Sparsity Factor
Extract from 29th October 2013 F40 meeting with David Laws MP
“MJ asked if the DfE thought sparsity and rurality were the same or different things. DL suggested that sparsity is intended to protect schools when closure would require pupils to travel long, unreasonable distances. Just being rural in itself doesn’t signify sparsity. Many rural schools can demonstrate that they are successful year after year without relying on sparsity funding. TL said that sparsity is a form of “compensation for schools that cannot otherwise achieve economies of scale”.

29. Optional Sparsity Factor
View from SASH is that this factor is not being introduced by DfE to enable LAs to re create small schools protection – this is aimed at schools in areas such as Cumbria, Northumberland etc. where demographics make small schools uneconomic but unavoidable
SASH do not support small Swindon Schools being subsidised by all other schools
This need not lead to closures but smaller schools would need to radically review their staffing levels as MFG protection gradually erodes – SAPH view?

30. Best use of DSG Balance?

31. New Primary Delegations?
Still liaising with EFA to determine best options on how the following services could/should be funded
Nyland Campus Pathway Class (formerly PRU)
Nyland Campus Therapeutic Provision (formerly CAMHS)
Mountford Manor SRP
Current funding is direct from the LA via place plus but this may need to change
If schools are required to pay top ups then LA will delegate extra cash via BPPE increase but new admin arrangements would need to be established

32. Trade Union Release Time Cost Pooling

33. Trade Union Release Time
Letter sent by Anne English explains the position
All central funding (£23,000) has been delegated in 2013/14 but Schools Forum agreed that the LA could continue to fund existing release arrangements from the DSG balance this year only.
New pooling funding arrangements are needed from 1st April 2014 or individual schools and academies can make local arrangements
Maintained schools (by sector) can elect for de-delegation (automatic pooling) or can individually pool funding via a Traded Services agreement
Academies must individually enter into a Traded Services agreement

34. If a new arrangement is required;
Which unions should be included and what level of of release time should be funded?
Which schools and/or Academies wish to join the scheme and pool funding?
De-delegate funding (i.e. If all maintained secondary or all primary schools agree) otherwise must set up individual traded services charges.
If all settings (28,000 pupils) bought in at current costs of £23,000 (which funds 3 days per week) = a charge of 0.82p per pupil
One day per week release time costs £7,700 per year

35. Interest in new arrangements?
SASH would be interested in seeing a draft Service Level Agreement which covered a new scheme - with options
SAPH interest?
Maintained schools?
Academies?

36. DSG and school funding prospects 2015/16 onwards

37. DSG & School Funding Prospects 2015/16 onwards
“DSG for reception to year 11 will grow at more than flat cash nationwide”
Unclear whether this meant inflationary increases would be applied as it could just mean the overall cash value is rising due to extra pupils
“Pupil Premium will grow in real terms”
Speaker then said “in line with inflation” which suggests this is not a real terns increase
Government will consult on the introduction of a national fair funding formula for schools in 2015/16

38. DSG & School Funding Prospects 2015/16 onwards
School Level Formula - DfE decide individual school level budgets which LAs just passport through without any role for DCS or Schools Forum
Hybrid Formula - DfE allocate DSG to LAs based on a formula derived from individual school budgets but with an expectation that the DCS & Schools Forums will still have scope to revise them
LA Level Formula - DfE allocate DSG to LAs via a new formula leaving DCS & Schools Forums to set school budgets within the finance regulations (unclear whether the schools block would be ring fenced)

39. DSG & School Funding Prospects 2015/16 onwards
No reason to believe the lowest funded LAs now are the most under funded
The size of gains an losses across LAs / schools will depend on
The exact formula chosen (primary to secondary funding ratios? Importance of early intervention? include Pupil Premium? regional pay differences?)
Time period over which it is implemented
Institute of Fiscal Studies modelled a “low disruption” option and 1 in 6 schools would lose at least 10% whilst 1 in 6 would gain at least 10%

40. DSG & School Funding Prospects 2015/16 onwards
MFG will continue – “ministers very alive to avoid excessive turbulence” – but DfE want changes sooner rather than later and don’t want to lock funding in via MFG for years
DfE keen to establish what level of funding a school could lose per year
Indications are that that lower levels of MFG protection than -1.5% per pupil will be available after 2014/15

41. DSG & School Funding Prospects 2015/16 onwards
“Plotting spend per pupil against attainment shows very different results are achieved by schools which spend the same and higher spending does not correlate to higher achievement – reform needed”
“DfE to introduce a simple indicator of overall school efficiency for schools to compare their effectiveness”
“Aim to strengthen governor’s role in driving financial efficiency”
“DfE to remove unnecessary restrictions that constrain workforce decisions”

42. End of Presentation
We will finalise 2014/15 mainstream funding allocations reflecting October 2013 PLASC and the agreed formula values and will issue indicative budgets as soon after Christmas as possible
Any residual questions?
Any further information required?