1. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 1 School Funding Reforms Agenda Introduction & overview Background & context Delegations – your choice Current formula arrangements New formula requirements Choices What it means for you

2. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 2 School Funding Housekeeping Fire, phones and feedback forms Introduction Purpose, priorities and proportions

3. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 3 Background Summer 2010 fair funding consultation Autumn 2011 – into the ‘too difficult box’, but introduction of a fair formula Consultation launched 28 March 2012 Closes 21 May 2012 Decision to go ahead 26 June 2012 Models and decisions July – August Schools Forum 2 October Cabinet 16 October; deadline 30 October Full Council November

4. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 4 Context ER 8 th worst funded LA New Ofsted Framework Rising floor standards Big sticks Increasing budget pressures CMT, Members, MP’s, f40

5. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 5 Schools Funding Government funding Dedicated Schools Grant > £209m Schools Funding Reform:

6. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 6 Dedicated Schools Grant (DSG) The purpose of the DSG is to fund educational provision for children and young people of East Riding Most children and young people will be educated in schools, some will be educated elsewhere

7. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 7 DSG – current arrangement DSG - broken into two elements -Non–Individual Schools Budget (Non-ISB) c. 8% (retained centrally) -Individual Schools Budget (ISB) c. 92% (ER formula – allocated to schools)

8. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 8 DSG c. £209m Non-ISB 8% ISB 92%

9. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 9 Funding Reform (i) Non-ISB New rules to cover what may be held centrally (Non-ISB) and what must be delegated to schools wef April 2013 Of the 8% Non-ISB (c. £17m), 37 budget lines comprising £5m must be delegated to schools

10. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 10 De-delegations 37 budget lines have to be delegated to schools. It is possible for the Schools Forum to make the decision to de-delegate monies from 32/37 lines, to be retained centrally, for the purpose for which they were originally retained. Status quo. De-delegation is used in this sense here!

11. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 11 Funding Reform: Delegations (i) 37 budget lines - 32 may be ‘de-delegated’ officers recommend 19 of 32 de-delegated officers recommend 13 of 32 delegated 5 budget lines must be delegated (ie 37-32) –Budgets that must be delegated are NQT support, procurement services, swimming and school meals provision (2 budget lines).

12. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 12 Funding Reform: Delegations (ii) De-delegation items 1.Generic ‘insurance items’, funded centrally, all schools may access at some time – economies of scale 2.Specific activities – economies of scale 3.SACRE - statutory Survey responses – due 19 September Schools Forum decision 2 October

13. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 13 Funding Reform: Delegations (iii) Must Delegate ie no de-delegation NQT – money goes to schools Swimming – money goes to schools Procurement – SLA, or no access to LA contracts etc School meals – meetings in October

14. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 14 Pause for breath ……………………. ………………………………….. …………………………………….. Part 2

15. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 15 Formula Funding Reform Two steps JW – New formula, structure and issues CA – what it means for you

16. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 16 What’s new Current system Non-ISB + ISB = £209m New system - 3 funding blocks: Schools Block (£182m) High Needs Block (£16m) Early Years Block (£11m) Total £209m Elements of each Block taken from ISB + Non- ISB; complicates matters so comparison is problematic

17. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 17 Another pause…. We use the figures for the current (2012/13) formula allocation … in our model for the new formula in order to provide a comparative picture

18. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 18 Formula – current and new Current formula ER Formula has 37 factors Then add Early Years and High Needs SEN New Formula Allows 12 factors with just 4 affecting 97.5% of the Schools Block. Then add Early Years and High Needs SEN Block allocations

19. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 19 Formula Factors 37 factors allows for fine discrimination in allocation of funding Reduced to 12 factors, of which 4 factors are worth c. 97.5% Inevitably a more crude approach – if simpler and more transparent

20. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 20 4 Factors Lump sum £100-£200k (at £130k c. 10.8%) SEN (c. £5m) (c. 2.9%) Deprivation (c. £10m) (c. 5.8%) Formula to give a per pupil allocation (c. 78%) =97.5%

21. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 21 One Factor Lump sum Currently Primary £82k-£100k; Secondary £226k New Formula range £100-£200k Some implications ……………

22. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 22 Lump Sum Impact

23. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 23 Lump sum choices Large lump sum – favours ‘smaller’ schools but penalises many pupils in larger schools - they receive less per pupil funding Small lump sum – favours ‘larger’ schools so more pupils benefit at the expense of smaller schools as institutions Hobson’s choice?

24. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 24 Hobson’s Lump sum choice Our choice is to select a lump sum to reflect the key principle We fund pupils’ education, We don’t fund bricks and mortar Consequently we select a lump sum to best provide for the largest number of pupils across all types of school – primary, secondary, large, small

25. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 25 Other factors Every other factor has its own issues. Decisions have been made Some schools will win, others will lose The Minimum Funding Guarantee is -1.5% For two years only, wef April 2013

26. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 26 Conclusions Some schools will face major reductions in funding no matter how we structure the formula The implications for education for their pupils are significant New approaches will have to evolve, quickly