1. School Funding Formula 2014-15 Briefing 4 September 2013

2. Review of Fairer Funding Reforms Review of the impact of the 2013-14 reforms undertaken by the EFA Review was always planned so no surprise Consultation with a number of Councils to obtain views

3. Principles Adopted Simple transparent system with a minimum of formula factors Minimum disruption to individual schools funding as far as possible Each sector treated separately – primary / secondary Meets DfE Guidance

4. NELC 2014-15 Formula standstill position If no changes would still have needed to review formula Protections / gainers cap (50%) impact lead to £52k deficit This deficit position will continue year on year until eventually works through

5. 2014-15 Formula - Main Changes (1) Minimum of 80% to be funded through pupil led factors (AWPU, Deprivation, Prior attainment, LAC & EAL) AWPU minimum values to be introduced, Primary £2,000, Secondary (KS3 & KS4) £3,000 Lump Sum - maximum to be reduced from £200k to £175k and each phase (primary / secondary) can have a different value Carbon Reduction scheme no longer applies to schools Schools (good or necessary) with falling rolls (where future demand increase (population bulge) is predicted) – similar to the basic growth need contingency it is now permitted for Local Authorities to create a small fund, using top sliced DSG to support schools with falling rolls in exceptional circumstances.

6. 2014-15 Formula - Main Changes (2) Sparsity - this is a new factor potentially aimed at assisting schools in rural areas. Applicable to schools who meet roll numbers and average “as the crow flies distances” to their nearest and second nearest schools. The maximum sum allowable per school is £100k but this will be tapered depending on the number of pupils on roll. Prior attainment - amendments to the measurement for secondary schools, Maths or English, impact £2.646m Deprivation – School Forums and local authority’s to determine locally an appropriate portion of their schools block funding to allocate through this factor. In addition different band values can be used for the primary and secondary phase.

7. Working Assumptions Centrally retained costs will be agreed for 2014/15 –Admissions - £217,559 –Servicing of Schools Forum - £11,300 –Termination of Employment Costs - £434,400 De-delegations not built into the model No change to the Growth PAN contingency One off payment from contingencies (TBD)

8. Questions for Current NELC Formula (1) Do we want a contingency for Schools with falling rolls (where future demand increase (population bulge) is predicted)? Do we want to introduce a Sparsity factor where applicable? Deprivation –Are we comfortable with solely using IDACI as our measure of deprivation. We are one of a handful of Councils that doesn’t use this and FSM / FSM6 –The % of our funding through the current formula for deprivation is 6.37%. However between phases it is 4.15% (secondary), 7.7% (primary). Should we equalise these rates and if so should there be a transition year?

9. Questions for Current NELC Formula (2) Do we want to retain a contingency for Growth in PAN requests?

10. Key Dates - Timetable DateAction 31 October 2013 LA submits provisional School Budget pro forma to the EFA 27 November 2013School census database closed 16 December 2013 EFA confirms DSG allocations for 2014- 15 21 January 2014 LA submits final data School Budget pro forma to the EFA 28 February 2014LA confirms budgets for maintained schools. EFA confirms budget for academies

11. Consultations Will need to be held over the next few weeks