1. Schools Forum Induction Introduction to School Funding Mary Murkin & Chris Allcock

2. Schools Forum Induction Main Sources of School Funding DSG: Schools Block (SB) £420.33m DSG: Early Years Block (EYB) £28.33m DSG: High Needs Block (HNB) £62.85m Non DSG: Government Grants £73.39m ESG£9.26m Total£594.16m See Financial Handout 3 for further details DSG: Dedicated School GrantESG: Education Services Grant

3. Schools Forum Induction

4. Main Sources of School Funding (cont’d) QUESTION 1: Is the DSG higher or lower than the Council’s overall budget? (A)Higher (B)Lower

5. Schools Forum Induction Main Sources of School Funding (cont’d) QUESTION 1: Is the DSG higher or lower than the Council’s overall budget? (A)Higher (the Council’s 2015-16 overall budget is approx. £496m) (B)Lower

6. Schools Forum Induction DSG: Schools Block (SB) SB Funding = (Primary R-YR6 pupils + Secondary YR7-11 pupils) x Historic Multiplier* *Increased for Minimum Funding Levels in 2015-16 (+£16m) Majority used to fund the ‘normal’ education costs of Reception to YR11 pupils in Primary and Secondary Schools and Academies (A) Delegated v (B) De-delegated v (C) Centrally Retained

7. Schools Forum Induction (A) Delegated Schools Block Funding Allocates majority of schools’ funding (>£410m) The formula factors are limited and highly regulated by the DfE DCC 2015-16 formula factors (see Financial Handout 4 for further details): Pupil LedNon Pupil Led AWPU*Lump Sum Deprivation* - Ever 6 FSMSplit Site LCHIPFI EALRates Exceptional Circumstances MFG* *Statutory Factors

8. Schools Forum Induction (A) Delegated Schools Block Funding (cont’d) Available delegated SB formula factors which Derbyshire doesn’t use: Pupil LedNon Pupil Led Deprivation – Pure FSM or IDACISparsity Looked After ChildrenLondon Fringe Pupil MobilityPost 16

9. Schools Forum Induction (A) Delegated Schools Block Funding (cont’d) QUESTION 2: What % of the Delegated Schools Block Funding uses pupil led factors? (A)65% (B)75% (C)85%

10. Schools Forum Induction (A) Delegated Schools Block Funding (cont’d) QUESTION 2: What % of the Delegated Schools Block Funding is pupil led? (A)65% (B)75% (C)85% (DfE regulations state that at least 80% must be based on pupil led factors)

11. Schools Forum Induction (A) Delegated Schools Block Funding (cont’d) QUESTION 3: What % of an individual school’s SB budget is based on pure pupil numbers? (A)65% (B)75% (C)85% (D)None/all of the above

12. Schools Forum Induction (A) Delegated Schools Block Funding (cont’d) QUESTION 3: What % of an individual school’s SB budget is based on pure pupil numbers? (A)65% (B)75% (C)85% (D)None/all of the above (Between 18% and 91%) 18% = Primary school with 12 pupils 91% = Secondary academy with 1,055 pre 16 pupils (not in an area of deprivation)

13. Schools Forum Induction (A) Delegated Schools Block Funding (cont’d) QUESTION 4: Does the Minimum Funding Guarantee (MFG): (A)Limit year on year losses to a school’s budget? (B)Limit year on year losses to a school’s per capita funding? (C)Have mysterious and bizarre outcomes?

14. Schools Forum Induction (A) Delegated Schools Block Funding (cont’d) QUESTION 4: Does the Minimum Funding Guarantee (MFG): (A)Limit year on year losses to a school’s budget? (B)Limit year on year losses to a school’s per capita funding? (C)Have mysterious and bizarre outcomes! e.g. falling rolls tends to lead to decreased MFG and rising rolls to increased MFG. Also, whilst the Lump Sum is excluded from the protection, changes to the Lump Sum affect MFG

15. Schools Forum Induction (B) De-delegated Schools Block Funding Funding which is delegated but then de-delegated/re-pooled and held centrally on behalf of schools (N.B. not academies) The primary and secondary school sector representatives on the Forum make the decision on behalf of all schools in their specific sector (decision to be taken at 9 th November meeting) 2015-16 De-delegated Budgets: Contingency Insurance Library & Museums (Primary Schools only) Staff Costs: Maternity (Primary Schools only) Staff Costs: Public Duties (Primary Schools only) Staff Costs: Trade Unions

16. Schools Forum Induction (C) Centrally Retained Schools Block Funding SB funding held centrally must be used fairly for both schools and academies 2015-16 Centrally Retained SB:£mNotes Contribution to Combined Budgets5.696£2m funded from cash balances Growth Fund: KS1 Class Size funding2.111 School performance1.500Funded from cash balances Licences (paid centrally)0.543DfE requirement – includes academies Children in Care Endowment0.500Funded from cash balances Equal Pay0.500Funded from cash balances Admissions0.468 Other0.108School Forum & SEN Transport Total11.426

17. Schools Forum Induction (C) Centrally Retained Schools Block Funding (cont’d) QUESTION 5: Who decides how much of the Schools Block to retain centrally? (A)The LA (B)The Schools Forum (C)The Secretary of State

18. Schools Forum Induction (C) Centrally Retained Schools Block Funding (cont’d) QUESTION 5: Who decides how much of the Schools Block to retain centrally? (A)The LA (B)The Schools Forum (approves continued retention up to historic levels) (C)The Secretary of State (approves any increases)

19. Schools Forum Induction Schools Block Issues Potential need for local formula review based on comparative statistics, e.g. Primary Lump Sum DCC£130,353 (11 th out of 27 Shires) Shire average £119,843 DCC £10,510 above average Primary AWPU DCC£2,661 (23 rd out of 27 Shires) Shire average £2,798 DCC £137 below average % of overall Schools Block delegated via: AWPU73.94% (26 th out of 27 Shires) Deprivation8.65% (3 rd out of 27 Shires) Lump Sum12.74% (1 st out of 27 Shires)

20. Schools Forum Induction Schools Block Issues (Cont’d) The SB will be cash flat until 2020, varying only by pupil number changes Delegated SB signalled to become a national funding formula But…Derbyshire’s SB per pupil multiplier is £4,409.01, the 6 th highest of 27 shires and 106 th of 151 nationally – will DCC gain or lose from a national formula? The SB isn’t ring-fenced and is currently supporting High Needs and Early Years Block costs of £3.44m The DSG is overcommitted by £3.61m

21. Schools Forum Induction DSG: Early Years Block (EYB) EYB Funding = FTE Early Years children (School + PVI) x Historic Multiplier Majority used to fund the 3 & 4 year old free entitlement in schools, academies and PVIs via the Early Years Single Funding Formula (EYSFF) (N.B. the 2 year old entitlement is supported by a separate grant) (A) Delegated v (B) Centrally Retained PVI: Private, Voluntary & Independent Sector

22. Schools Forum Induction (A) Delegated Early Years Block Funding The EYSFF allocates approx. £13.82m to schools and £14.72m to PVIs DCC 2015-16 formula factors (see Financial Handout 4 for further details): Formula FactorSector Basic Hourly Rate*All Deprivation* - IMDAll Additional Hourly RatePrimary, Infant & Nursery Schools Lump SumNursery Schools LCHI SENNursery Schools RatesNursery Schools *Statutory

23. Schools Forum Induction (B) Centrally Retained Early Years Block Funding EYB funding held centrally must be used fairly for both schools and academies, 2015-16 Centrally Retained EYB:£m Early Years Improvement Service1.081 Pre School Educational Psychology0.593 Central spend on Nursery Schools (e.g. insurance)0.179 Every Child a Talker0.157 Additional Central Support – Vulnerable 2 Year Olds0.100 Uncommitted Central Capacity0.284 Total2.394

24. Schools Forum Induction (B) Centrally Retained Early Years Block Funding (cont’d) QUESTION 6: Who decides how much of the Early Years Block to retain centrally? (A)The LA (B)The Schools Forum (C)The Secretary of State,

25. Schools Forum Induction (B) Centrally Retained Early Years Block Funding (cont’d) QUESTION 6: Who decides how much of the Early Years Block to retain centrally? (A)The LA (B)The Schools Forum (continued retention AND increases) (C)The Secretary of State,

26. Schools Forum Induction Early Years Block Issues Increase to 30 hours free entitlement for the 3 and 4 year old children of working parents DfE review of EY DSG - currently allocations use historic multipliers National Living Wage: particularly affects PVI sector

27. Schools Forum Induction DSG: High Needs Block (HNB) Funding = Adjusted Historic Block Allocation (i.e. no formula) Majority used to fund the higher end costs of SEND for 0-25 year olds with placements both within and outside of Derbyshire, for example in: Schools Academies PVI FE colleges Non Maintained Special Schools Independent Special Schools (A) Delegated v (B) Centrally Retained

28. Schools Forum Induction (A) Delegated High Needs Block Funding Allocates approx. £40m to Derbyshire schools, academies and PRUs National framework: Element 1 = core AWPU etc. / approx. £4,000 Element 2 = first £6,000 over and above Element 1 Element 3 = funding in excess of the first £10,000 (known as Top Ups) Elements 1 & 2 are combined as £10,000 Places for ERS, Special Schools and PRUs. Number of Places is agreed and funded at start of year

29. Schools Forum Induction (A)Delegated High Needs Block Funding (cont’d) QUESTION 7: On what basis does the Element 3 Top Up funding have to follow the pupil? (A)Weekly (B)Monthly (C)Termly (D)Annually

30. Schools Forum Induction (A)Delegated High Needs Block Funding (cont’d) QUESTION 7: On what basis does the Element 3 Top Up funding have to follow the pupil? (A)Weekly** (B)Monthly (must follow the pupil in real time on at least a monthly basis) (C)Termly (D)Annually **Where applicable, the pupil tracking spreadsheet actually accounts for part months in order to calculate the payments.

31. Schools Forum Induction (A)Delegated High Needs Block Funding (cont’d) QUESTION 8: The Element 3 Top Up is: (A)Always paid by Derbyshire? (B)Paid by the EFA/DfE? (C)In most cases, paid by Derbyshire?

32. Schools Forum Induction (A)Delegated High Needs Block Funding (cont’d) QUESTION 8: The Element 3 Top Up is: (A)Always paid by Derbyshire? (B)Paid by the EFA/DfE? (C)In most cases, paid by Derbyshire? The Top Up is always paid by the Commissioner, i.e. the LA responsible for the pupil. In most cases this is Derbyshire but can be any other LA (OLA), e.g. Nottinghamshire, Derby City, etc. It is the school’s responsibility to agree and obtain the Top Up funding from the OLA

33. Schools Forum Induction Derbyshire HNB Formulae (1) Primary, Secondary and Nursery (see Financial Handout 4 for further details): New: Education Health & Care Plans (EHCPs): Element 3 = Bands 1 2 3 4 or 5 Graduated Response for Individual Pupils (GRIPs): Element 3 = individual time limited cash allocations according to approved request Old: SENTA statements: (No. of Statemented Hours - 9.5*) x Multiplier *9.5 Hours = approx. the first £6,000 which is within Schools Block formula. Will all be converted to EHCPs Band 1 2 3 4 or 5 over next couple of years

34. Schools Forum Induction Derbyshire HNB Formulae (2) Primary and Secondary (see Financial Handout 4 for further details): Enhanced Resource School (ERS): Places @ £10,000 (number agreed and funded at start of year) Per pupil Top Up based on type of ERS provision: A: Area (i.e. mixed provision) B: Severe Sensory Impairment (hearing) C: Autism D: Extreme Physical Impairment Age specific AWPU Shadow funding for unoccupied places (50% of Top Up value - no AWPU)

35. Schools Forum Induction Derbyshire HNB Formulae (3) Special Schools (see Financial Handout 5 for further details): Places @ £10,000 (number agreed and funded at start of year) Per pupil Top Up based on individual pupil profile of need (common multipliers across all 10 special schools) School specific Site Top Up Various school specific budgets, e.g. EYSFF, Outreach, Extended Day Protection

36. Schools Forum Induction Derbyshire HNB Formulae (3) PRUs: Places @ £10,000 (number agreed and funded at start of year) Per pupil Top Up based on Setting Specific multipliers Protection

37. Schools Forum Induction (B) Centrally Retained High Needs Block Funding HNB funding held centrally must be used fairly for both schools and academies 2015-16 Centrally Retained HNB:£m Places & Top Ups for non-DCC Settings (e.g. Other LA Special Schools, Non Maintained and Independent Special Schools, FE Colleges) etc. 13.834 Services (SSSEN, Hearing, Sight and Physically Impaired)5.806 Education Other than in School (e.g. Integrated Pathways, Virtual School)3.477 Behaviour Support Services1.739 Misc (e.g. SEN Equipment, Vulnerable Children, Contribution to Education Psychology)1.078 Back Office Support0.749 SEN Contingency0.300 Total26.983

38. Schools Forum Induction High Needs Block Issues DfE review of HNB DSG allocations, potential formularisation Review costs of placing pupils with ‘similar’ needs in different settings High Needs spending is supported in part by the Schools Block DSG ‘Invest to Save’ for high cost pupils

39. Schools Forum Induction Non DSG: Government Grants (1) Government driven funding which is passported to schools and academies Pupil Premium Grant (PPG): now 5 types. Allocates approx. £29.24m Pupils in EY through to YR11 can qualify, but not Post 16 students TypeAllocation p.a. (£) Ever 6 FSM£1,320 (P) £935 (S) Ever 5 Service Child£300 Looked After Children (Managed by Virtual School Team)£1,900 Post Looked After (e.g. Adopted from Care, Special Guardianship) £1,900 Early Years (53p per hour. New in April 2015)Max £302

40. Schools Forum Induction Non DSG: Government Grants (2) Vulnerable 2 Year Olds: funds the free 15 hours entitlement for children whose parents/guardians meet certain criteria (£4.48m) Universal Infant FSM (UIFSM): Government funded free school meal for all children in KS1 year groups (£7.98m) Primary PE & Sport Premium: to improve the quality of PE and sport activities (£3.12m) Secondary Catch Up and Summer School: support for the YR6 to YR7 transition (£1.21m) Post 16: a national formula since 2002 (£27.36m)

41. Schools Forum Induction ANY QUESTIONS?