Department for
Education
Supplementary
Estimate 2014-15
Memorandum to the Education Select
Committee
February 2015
DfE Supplementary Estimate Memorandum 2014-15
Department for Education Supplementary Estimate
2014-15
Select Committee Memorandum
Table of Contents
Page
Introduction and Summary ............................................................................................................................................... 3
Key Activities Supported by the Above Provision ............................................................................................................. 5
Explanation of Estimate Funding ...................................................................................................................................... 6
Structural Changes to the Estimate .................................................................................................................................. 6
Significant Changes to Programmes and those with Increased Remit ............................................................................. 7
Net Cash Requirement .................................................................................................................................................... 20
Departmental Control Totals .......................................................................................................................................... 21
Provisions and Liabilities ................................................................................................................................................. 23
Contingent Liabilities ...................................................................................................................................................... 24
Departmental Accounting Officer ................................................................................................................................... 25
Control Totals – Summary of Changes ............................................................................................................................ 26
Detailed Breakdown of changes to Expenditure ............................................................................................................ 27
Changes to Resource DEL since Spending Review 2010 ................................................................................................. 29
Budgetary Limits Outturn and Plans 2008-09 to 2015-16 .............................................................................................. 33
Explanation of key terms used in the Memorandum ..................................................................................................... 34
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DfE Supplementary Estimate Memorandum 2014-15
Introduction and Summary
1. The purpose of this memorandum is to provide the Education Select Committee with additional
information about the content of the Department for Education’s Supplementary Estimate for
2014-15. The memorandum includes information on the department’s key priorities, as well as
outlining the departmental budget control totals and the movements since the Spending
Review settlement.
2. The Supplementary Estimate voted provision is summarised in the table below:
Table 1 – Estimate Control Totals 2014-15
Main
Supplementary
Estimate
Estimate
2014-15
2014-15
£m
£m
54,479.8
54,077.3
3,551.1
4,300.1
2,500.1
2,500.1
1,051.0
1,253.0
449.0
56.0
42.0
5,030.1
4,756.1
70.0
70.0
59,509.9
58,833.4
A. Departmental Expenditure Limit
Resource
Of which ringfenced:
Pupil Premium*
Depreciation
Free School Meals
Age Apprenticeships
Youth Contract
Capital
Of which ringfenced:
Free School Meals
B. Total Departmental Expenditure Limit
C. Annually Managed Expenditure
Resource
Of which ringfenced:
Depreciation
D. Total Managed Expenditure (Line B+C)
Of which ringfenced:
Pupil Premium*
Depreciation
Free School Meals
Age Apprenticeships
Youth Contract
E. Net Cash Requirement
(19.1)
59,490.8
3,551.1
2,500.1
1,051.0
58,913.0
650.2
73.0
73.0
59,483.6
4,443.1
2,500.1
1,326.0
519.0
56.0
42.0
58,327.9
Variance
£m
(402.5)
749.0
202.0
449.0
56.0
42.0
(274.0)
70.0
70.0
(676.5)
669.3
73.0
73.0
(7.2)
892.0
0.0
275.0
519.0
56.0
42.0
(585.1)
*This represents the total Pupil Premium budgets spread across the department
3. The total Departmental Expenditure Limit (DEL) budget is £58,833.4 million, a net decrease of
£676.5 million on the Main Estimate £59,509.9 million budget. We have decreased both
resource and capital budgets through a combination of reductions in demand and reprofiling
expenditure across financial years.
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DfE Supplementary Estimate Memorandum 2014-15
4. HMT have given their approval via the budget exchange process (the mechanism that allows
departments to carry forward a forecast DEL underspend from one year to the next) for the
department to carry over £275 million of capital funding (related to reprofiled costs) from 201415, for use in 2015-16 on schools projects. A similar transfer of £2.7 million in administration
costs funding has also been approved for use in 2015-16’s Resource DEL budgets.
5. The £402.5 million overall reduction in the Resource DEL budgets includes reductions in both
administration costs and programme budgets. The administration cost RDEL limit has
decreased by a net £2 million. The remaining £400.5 million reduction to programme budgets
has been generated from;

underspends and other budget reductions across the departmental group programme
totalling £367.5m (details provided in pages 7 - 17)

£32m net transfers to and from other government departments (OGDs) for jointly
funded projects and functions that have transferred from DfE (these can be seen in
paragraph 43, tables 3 and 4)
6. The most significant RDEL budget reductions are in the following sections:

Section G – National College for Teaching and Leadership (NCTL) - £121 million

Section H – Education Funding Agency (EFA) - £47 million

Section I – Academies (Net) - £100 million
7. The majority of the department’s resource budgets are paid through the Education Funding
Agency (EFA), of which £14 billion is paid to academy trusts. The Dedicated Schools Grant
(DSG) at £28 billion is the largest portion of the department’s budget. This grant is paid to local
authorities and is either delegated to schools or used for centrally managed provision for
pupils. In addition to underspends, the Estimate includes other adjustments for budgets
transferring between sections, particularly around the DSG and Academies schools funding
budgets. These budgets have been reallocated to reflect more up to date information e.g. pupil
numbers in academy trusts and local authority maintained sector schools. The reductions are
not cuts in education budgets, merely a technical transfer so that the Estimate budgets reflect
where money is being spent. The largest of these changes are:

Section C – £91.2m transferred to the EFA’s budget in Section H from Education
Standards Directorate (ESD) to cover Primary PE and Sport Premium to be paid to
state-funded primary schools to improve their provision of sport and PE.

Section D – £24.6m transfer from Children’s Services to NCTL (Section G) reflecting
NCTL's role in managing Early Years workforce funding.

Section H – £213m transferred from the academies General Annual Grant (GAG) in
Section I to the Dedicated Schools Grant (DSG) to account for the greater number of
pupils in maintained schools, resulting from a lower number of academy conversions
than previously forecast.

Section I – £236m from the Education Funding Agency (EFA) to academies Sixth
Forms to reflect funding required for the actual numbers of post 16 pupils in academies.
This increase has been offset by a net reduction of £239.9 million for the potential
underspend on resource expenditure by academies, arising from their consolidation
within the group accounts.
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DfE Supplementary Estimate Memorandum 2014-15
8. The capital DEL limit has reduced by £273.9 million since the Main Estimate. The main
change is the £275 million that has been carried over into 2015-16 so that we can spend it on
schools capital projects that have been reprofiled. This £275 million decrease has been offset
by some small increases in budgets for energy efficiency loans. More information on the
changes to the capital budgets is provided on page 18.
9. Annually Managed Expenditure (AME) has increased by £669.3 million for the movements on
non-cash budgets, mainly related to academies budgets. Examples of the non-cash budgets
include the movement in pension deficits / surpluses, provisions, depreciation on academy
trusts’ donated assets, revaluations, impairments, and the new Risk Protections Arrangement.
More information on the reductions and other changes is contained in paragraph 46 onwards.
Key Activities Supported by the Above Provision
10. The Department for Education is working to achieve a highly educated society in which
opportunity is equal for children and young people, no matter what their background or family
circumstances. It is responsible for the following education and children’s services in England:

Teaching and learning for children in the early years and in primary schools

Teaching and learning for young people under the age of 19 years in secondary
schools and in further education, or the ages of 3 and 25 for those with learning
difficulties and disabilities

Supporting professionals who work with children and young people

Helping disadvantaged children and young people to achieve more

Making sure that local services protect and support children.
11. In 2014-15 our priorities are:

Creating a self-improving, school-led system

Developing a great workforce – with strong leadership

Increasing rigour and expectations of curricula, assessment and behaviour

Protecting and increasing opportunity for vulnerable children

Supporting schools to prepare well-rounded young people for success in adult life.
The Supplementary Estimate updates budgets to reflect recent spending announcements
since the Main Estimates were published. New programmes to develop careers advice, and
character, have been introduced to implement the new fifth priority shown above, including the
new cadet bursary scheme (reporting into Section B – School Infrastructure and Funding).
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DfE Supplementary Estimate Memorandum 2014-15
Explanation of Estimate Funding
Departmental Expenditure Limit
12. The Departmental Expenditure Limit (DEL) is based on the department’s 2010 Spending
Review Settlement which is then adjusted for baseline movements such as budget
announcements, transfers to and from other government departments, other funding
drawdowns and changes in budgeting treatment. The annual baseline movements since the
Spending Review are listed in the departmental control totals table in paragraph 51.
13. Within DEL there are three separate control totals. At the Main Estimate these limits were:

Resource DEL - administration £324.9 million

Resource DEL - programme £54,154.9million

Capital DEL - £5,030.1 million
14. In addition to the summary tables in paragraph 51, further information on the impacts of the
changes to the DEL budgets are detailed in Annex C.
Annually Managed Expenditure
15. Annually Managed Expenditure (AME) is expenditure that is demand led or exceptionally
volatile which make it difficult for departments to control. All of the department’s demand led
programmes, such as Initial Teacher Training, are included in the DEL control total. The only
items in AME are non-cash funded items which include:

the movement in pension deficits / surpluses allocated to academy trusts by the Local
Government Pension Scheme (LGPS) in respect of some of their employees,

the take up and release of provisions,

depreciation on academy trusts donated assets,

revaluations and impairments,

the write off of bad debt.
16. More information on the budgets within AME is provided in paragraph 46.
Structural Changes to the Estimate
17. The Estimate structure is based on the programme activities of the directorates within the
department. This structure has not changed since the Main Estimate apart from removing the
section relating to Non Departmental Public Bodies (NDPB) AME costs. Following the transfer
of the Children and Family Court Advisory and Support Service to the Ministry of Justice, there
is no planned AME expenditure this year by the remaining NDPB, the Office for Children’s
Commissioner.
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Significant Changes to Programmes and those with Increased Remit
Departmental Expenditure Limit
Resource DEL – Administration Costs - £323 million
18. The administration cost control total includes the department, its agencies, and its other Arm’s
Length Bodies (ALBs). The main departmental administration budgets are in Section A, with
the administration budgets for the agencies and ALB’s shown separately in Sections E, F, G
and H. The administration costs of academy trusts are classed as programme expenditure and
consequently are not included in the DEL administration cost control total.
19. The DEL administration cost control total has reduced by £1.9 million in the Supplementary
Estimate. This reduction relates to the transfer of administration costs to other government
departments, listed in Table 2 below, as well as the key following adjustments;

(£2.7m) reduction for unspent administration costs, carried over to 2015-16

£0.4m increase in the resource department expenditure limit resulting from the 2013-14
cash management rebate.

(£0.3m) reduction to the department’s control total, reflecting the fact that departments
can now recover the VAT on non- criminal legal representation expenses.

£0.8m increase as a result of the reclassification of costs, relating to the administration
of the Risk Protection Arrangement for academies, from programme budgets to
administration.
Table 2 – Admin costs transferred to other government departments
Resource DEL – Programme Costs £53,754.3 million
20. Since the Main Estimate the department has realised net reductions totalling £400.5 million
across all its programmes. It has achieved this reduction in the overall costs by reducing
spending on contracts and grants, and lower than expected expenditure on some demand led
programmes. This reduction does not affect the ring-fenced budgets.
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DfE Supplementary Estimate Memorandum 2014-15
21. The chart below breaks down the £400.5 million net budget reduction since the Main Estimate
to show the percentage movement by area.
Budget reductions since Main Estimate
A
0%
6%
14%
A Activities to Support all Functions
B
I
B School Infrastructure and Funding
of Education (Department)
9%
H
C
27%
C Education Standards, Curriculum
and Qualifications (Department)
D Children's Services and
Departmental Strategy (Department)
F Standards and Testing Agency
G National College and Training
Agency
G
24%
H Education Funding Agency Excluding Academies
D
I Academies (Net)
18%
F
2%
22. In addition to the budget reductions, the Supplementary Estimate also includes transfers of
funds between programmes to meet budgetary pressures or to increase spending in other
priority areas. There are some small transfers to and from other government departments (see
paragraph 43 for further information on transfer of functions and budgets with other
departments).
23. Annexes A and B provide further detail on the changes in the Supplementary made across all
Sections. The following paragraphs provide further information on the more significant
movements on programme budgets i.e. those Estimate Sections which have changed by more
than 10%, plus the Education Funding Agency and the net academies (as they are the largest
budgets within the department). The Sections are:







B
C
D
F
G
H
I
School infrastructure and funding of education
Education standards, curriculum and qualifications
Children’s services
Standards and Testing Agency (STA)
National College for Teaching and Leadership (NCTL)
Education Funding Agency (EFA)
Net academies.
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DfE Supplementary Estimate Memorandum 2014-15
Section B – School Infrastructure and Funding of Education (Department) – RDEL
decrease £25.1 million
Main Estimate Budget
£000
Para
176,914
Budget reallocations (to)/from other parts of DfE
Reductions on Programme
Increase / (decrease) in Section B
1,909
(27,000)
(25,091)
Supplementary Estimate
151,823
24
25
Summary of Changes
24. Budget reallocations to/from other parts of DfE (£1.9m)

£1.2m to pump-prime the new cadet bursary scheme.

£0.7m transferred into Section B for funding of International Maths Hub following the
decision to move core DfE activities from the NCTL (Section G) to the International
Division.

£0.2m transferred to the IFD’s Funding Policy Unit (FPU) for the management of the
school business managers grant scheme from the EFA (Section H).

(£0.2m) academies revenue transferred to the EFA.
25. Reductions on Programmes (£27m)

(£15m) Academies revenue budget reductions, due to reduced numbers of academies
openers relative to planned figures.

(£9.0m) Free Schools and Universal Technology Colleges budget has been reduced
due to lower than anticipated demand.

(£3.0m) National Licences budget reduced by the value of the VAT on payments for
copyright licence’s as the VAT is now recoverable from HMRC.
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Section C - Education Standards, Curriculum and Qualifications (Department) –
RDEL decrease £109 million
£000
328,776
Main Estimate Budget
Budget reallocations (to)/from other parts of DfE
Transfers to OGDs
Reductions on Programme
Increase / (decrease) in Section C
Supplementary Estimate
(63,849)
(15,050)
(30,148)
(109,047)
Para
26
27
28
219,729
Summary of Changes
26. Budget reallocations to/from other parts of DfE (£63.9m) comprise:

(£91.2m) transfer to EFA to cover Primary PE and Sport Premium to cover Primary PE
and Sport Premium to be paid to state-funded primary schools to improve their
provision of sport and PE.

£24.5m transfer from surplus Universal Infant Free School Meals (UIFSM) budget from
EFA to ESD to facilitate payment to the Department of Health (DH) following Ministerial
agreement for the department’s contribution to the fruit and vegetables scheme for
2014-15.

£6.6m transferred from the NCTL to ESD to fund Science Learning Centres and Impact
Awards.

£2.8m allocated from centrally held reductions to fund the Military Ethos programme.

£1.0m allocation from centrally held reductions for the Music and Dance Scheme.

(£7.6m) relating to a number small budget reallocations, each of less than £1m.
27. Transfers to OGDs

(£14.6m) budget transfer to OFSTED to support the Her Majesty’s Chief Inspector
(HMCI) inspection reform programme.

(£0.5m) transferred from ESD to OFQUAL for new IT to support its regulatory reform
programme.
28. Reductions on Programme

(£8.3m) due to the decision to stop work on the School Performance Data programme.

(£2.7m) the School Food budget has been reduced due to a) lower than anticipated
costs required to support schools in implementing Universal Infant Free School Meals
(UIFSM) through the UIFSM support service; and b) the rescheduling and renegotiation of contracts associated with the School Food Plan recommendations.

(£2.4m) from Raising the Participation Age Local Area Support budget following a
review of the approach to delivering this policy.
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DfE Supplementary Estimate Memorandum 2014-15

(£2.2m) unspent STEM club funding returned to the department by the provider.

(£1.1m) unspent as funding required for the Your Life (STEM) campaign was less than
originally profiled as a result of the campaign raising private sector contributions.

(£2.2m) due to lower than anticipated costs associated with schools/colleges becoming
early adopters of Core Maths.

(£1.5m) from the Future Scholars Awards budget due to fewer schools than anticipated
claiming expenses for visits undertaken in 2014.

(£2.1m) as a result of a lower Ofsted settlement than in 2013-14 and some delays to
the scheduling of inspections of faith schools by their prescribed bodies.

(£1.2m) as a result lower than anticipated costs of Key Stage 2 Teacher Assessment
and Phonics moderation work.

(£1.4m) from the Academic Qualifications budget as there were no academic projects
requiring funding.

(£5.0m) relating to a number of small changes, of less than £1m.
Section D - Children’s Services – RDEL decrease £70.9 million
£000
427,625
Para
Budget reallocations (to)/from other parts of DfE
Transfers to OGDs
Reductions on Programme
Increase / (decrease) in Section D
(22,213)
(20,053)
(28,621)
(70,887)
29
30
31
Supplementary Estimate
356,738
Main Estimate Budget
Summary of Changes
29. Budget reallocations to/from other parts of DfE – net £22.2m reduction:

£1.5m allocated to Local Authority Improvement Contracts. The initial allocation of
funding for the improvement programme between grant and contract was not accurate.
This transfer mitigates a portion of the £4.1m given up (see list of reductions below).

£1.2m was allocated to Youth VCS Prospectus Grants to facilitate payment to the
Cabinet Office in relation to Kids Company.

£0.7m was allocated to the Early Years Intervention Foundation to cover funding
requirements to the end of this financial year.

£0.3m additional funding for the Special Educational Needs Tribunals to implement
changes to tribunal processes required by the Children and Families Act 2014.

£5.0m top-sliced from the Dedicated Schools Grant budget (Section H) to fund centrally
managed work on the new two-year old entitlement to nursery education.

£0.5m internal transfer to enable grants payments to 24 schools in the Two Year Olds
School Champion project and 19 schools in the London 8-6 project.
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DfE Supplementary Estimate Memorandum 2014-15

£0.7m from NCTL to International Group to align funds relating to the International
Maths Hub.

(£24.6m) transfer from Children’s Services to NCTL reflecting NCTL's role in managing
Early Years workforce funding.

(£5.0m) transfer to NCTL for the management of funding for Educational Psychologists.

(£2.5m) relating to a number small budget reallocations of less than £500,000
30. Transfers to OGDs, totalling £20.1m:

(£7.5m) inter-departmental transfer of the Relationship Support programme to the
Department for Work and Pensions following the recommendation from the Family
Stability Review.

(£6.0m) inter-departmental movement to the Department for Culture, Media and Sport
resulting from the agreed transfer of the Book Gifting policy.

(£5.0m) transfer of funds to Ofsted to cover additional costs of inspection arrangements
for Early Years settings.

(£1.4m) transfer to the Department of Health as DfE's contribution to costs of providing
nursery milk for Two year olds.

(£0.2m) to transfer the costs relating to the National Association of Children’s Contact
Centres to Ministry of Justice
31. Reductions on Programme
The £28.6m budget reductions are listed below:

(£6.4m) Family Support Contact budget is not required in this financial year. The
funding was originally allocated to meet any additional costs of the parental involvement
clause in the Children and Families Bill. Following Ministerial agreement,
implementation was moved from April 2014 to autumn 2014 and therefore the costs will
not be incurred until 2015-16.

(£6.1m) has been redirected from the Social Work programme. The majority of this
funding (£5m) was planned to fund further interventions and improvement activity.
Following a review of the programme, it was concluded that adequate provision had
already been made for this financial year.

(£5.5m) underspend on the National Social Work Reform Support programme. The
majority of the funding was allocated to deliver the outcomes of the Narey Review.
Following revised timescales, a significant proportion of these outcomes are now
expected to be delivered in 2015-16.

(£4.1m) given up from LA Improvement Grants, largely due to a reduction in the level of
intervention required by Local Authorities.

(£1.4m) has been given up from the Adoption budget due to a significant reduction in
the number of placement orders made and the number of decisions made by local
authorities to pursue care plans for adoption. These changes are a response to a
number of high profile court judgments on care and adoption order cases. The criticism
has led to a slowdown in the adoption pipeline.
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DfE Supplementary Estimate Memorandum 2014-15

(£1.5m) less expenditure than expected on the Multi-Systemic Therapy programme
because the outstanding payments from 2013-14 payable in 2014-15 were less than
expected.

(£3.6m) relating to a number of small reductions of less than £1m.
Section F –Standards and Testing Agency – RDEL decrease £6 million
£000
45,702
Para
Main Estimate Budget
Budget reallocations
Reductions on Programme
Increase / (decrease) in Section F
1,800
(7,800)
(6,000)
32
33
Supplementary Estimate
39,702
Summary of Changes
32. Budget reallocations

£1.5m additional funds allocated to fund Key Stage 2 (KS2) STA Marking due to higher
than anticipated demand for KS2 Level 6 tests.

£0.3m additional funds to trial Teacher Assessment Performance Descriptors for KS2.
33. Reductions on Programme

£5.3m reduction on the demand-led Teachers’ Skills Test budget which enabled funds
to be released.

£2.5m reduction from the STA’s General Qualifications logistics budget due to
renegotiations of contract with the supplier.
Section G - National College for Teaching and Leadership – RDEL decrease £94.4
million
£000
478,698
Main Estimate Budget
Budget reallocations (to)/from other parts of DfE
Reductions on Programme
Increase / (decrease) in Section G
Supplementary Estimate
384,267
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26,522
(120,953)
(94,431)
Para
34
35
DfE Supplementary Estimate Memorandum 2014-15
Summary of Changes
34. Budget reallocations (to)/from other parts of DfE
There have been a number of large and small transfers in and out of the NCTL’s budget line
to ensure the agency’s budget reflects what it is being asked to deliver.
The main transfers between NCTL and the other sections are listed below:

£24.6m transfer from Children’s Services (Section D) to NCTL for the management of
Early Years workforce funding.

£5.0m transfer from Children’s Services (Section D) to NCTL for management of
Special Educational Needs workforce (Educational Psychologists).

£3.7m transfer from Education Standards Directorate (Section C) to NCTL to fund the
maths hub programme.

£0.3m allocated due to the cost of the expansion of the Future Leaders contract being
higher than originally anticipated.

(£6.6m) transferred to ESD (Section C) following agreement that the National Priorities
initiatives in respect of Science Learning Centres and Impact Awards should transfer
from NCTL to the STEM policy team in ESD.

(£0.7m) transferred from NCTL to Children’s Services (Section D) to fund the maths
hub programme following the decision to move core departmental programmes out of
NCTL to the International Division.

£0.2m a net adjustment relating to a number of reallocation in and out of the agency’s
budget, each of which is less than £0.2m.
35. Reductions on Programme
The £120.9m reductions are made up as follows:
 (£88.3m) reduction to demand led budgets, including Initial Teacher Training (ITT)
bursaries, Golden Hello incentives, Early Years ITT, mainstream ITT, Subject
Knowledge Enhancement (SKE) training bursaries, Chair of Governors, Teaching
Schools and Troops to Teachers ITT.

(£32.6m) from reprioritised budgets, including the leadership reform package, post ITT
SKE training, National Priorities and the National Professional Qualification in
Integrated Centre Leadership.
Section H - Education Funding Agency (EFA) – RDEL decrease £37.2 million
£000
37,770,818
Main Estimate Budget
Transfers (to)/from academies
Budget reallocations (to)/from other parts of DfE
Transfers (to)/from OGDs
Reductions todemand led Programmes
Increase / (decrease) in Section H
Supplementary Estimate
37,773,624
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(173,100)
179,866
3,142
(47,102)
(37,194)
Para
36
37
38
39
DfE Supplementary Estimate Memorandum 2014-15
Summary of Changes
36. Transfers (to)/ from the academies net budget (Section I)

£213.0m transferred from the academies’ General Annual Grant (GAG) budget to DSG
funding due to the lower number of academy conversions.

(£236.0m) transferred to Section I to bring sixth form budgets in line with current
forecasts of funding required in the maintained and academy sectors.

(£102.0m) transferred to the academies’ Pupil Premium budget to fund this and the
Year 7 catch-up programme agreed by Ministers.

(£59.5m) transferred to the academies’ GAG to pay for Free School Meals and PE and
Sports.

£11.4m transferred from the academies GAG to the maintained schools Education
Services Grant (ESG) to reflect the lower number of academy conversions.
37. Budget reallocations (to)/from other parts of DfE

£91.2m transferred from ESD to cover Primary PE and Sport Premium to be paid to
state-funded primary schools to improve their provision of sport and PE.

(£24.5m) transfer from Universal Infant Free School Meals (UIFSM) budget to the ESD
(Section C) to facilitate payment to the Department of Health (DoH) following Ministerial
agreement for the department’s contribution to the DoH fruit and vegetables scheme for
2014-15.

£0.7m transferred from Regional Schools Commissioners offices across the UK to pay
for members of the Head Teacher Boards (EFA is making the payments on behalf of
the RSC offices).

£12.0m allocated from ring-fenced Youth Contract funding budget exchanged from
2013-14.

£70.0m additional funding for planned over commitment against the EFA's Further
Education 16-18 Foundation Learning budget in the Main Estimate.

£30.0m additional funding for planned over commitment against the EFA's
Apprenticeships budget in the Main Estimate.

£0.5m a net adjustment relating to a number small budget reallocations of less than
£300,000.
38. Transfers (to)/from OGDs

£3.1m transfer from Business Innovation and Skills BIS for 19+ continuous learners in
sixth form colleges (this transfer covers the period August 2014 to March 2015).
39. Reductions on demand led programmes
The EFA has made £47million reduction across its demand led programmes:

(£15m) given up by maintained school sixth forms due to updated pupil projections.

(£14.9m) given up by Further Education colleges based on latest projections following a
review of requirements for 2014-15.
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DfE Supplementary Estimate Memorandum 2014-15

(£5m) given up from Apprenticeships based on latest projections.

(£12.2m) relating to a number of reductions which are less than £2.3m individually
Section I - Academies (Net) - RDEL decrease £56.2 million
£000
14,889,771
Main Estimate
Transfers to academies from the EFA
Budget reallocations (to)/from other parts of DfE
Reductions on Programme
Increase / (decrease) in Section I
Supplementary Estimate
173,100
(129,343)
(100,000)
(56,243)
Para
40
41
42
14,833,528
Summary of Changes
40. Transfers to academies from the EFA (see paragraph 36)

£236.0m transferred from the maintained sector budget in Section H to bring academy
sixth form budgets in line with current forecasts of funding required in the maintained
and academy sectors.

£102.0m transferred from the Pupil Premium budget to academies to pay for academies
Pupil Premium and the Year 7 catch-up programme.

£48.5m transferred from the Maintained School Free School Meals (FSM) budget to the
academies GAG to pay for FSM in academies.

£11.0m transferred to the academies GAG to fund PE and Sports in academies.

(£11.4m) transferred from the academies GAG to Maintained Schools ESG to reflect
the correct schools/academies split due to fewer number of academy conversions than
previously forecast.

(£213.0m) transferred from academies GAG to the DSG to account for the DSG
overspend resulting from the lower than previously planned number of academy
conversions.
41. Budget reallocations (to)/from other parts of DfE

£0.2m transferred from ESD to the EFA to enable payments to be made to two
academies who have taken part in the Techbacc trailblazers. The money is going to the
EFA who have the facility to pay directly to the two academies involved.

(£0.8m) HMT approved the reclassification of the costs related to the administration of
the Risk Protection Arrangement from programme RDEL to the administration RDEL
control total. Section A has been increased to reflect the additional costs.

£112.2m additional funding for planned over commitment of academies’ budgets in the
Main Estimate.
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DfE Supplementary Estimate Memorandum 2014-15

(£1.03m) HMT approved the reclassification of RDEL programme costs into capital to
finance the loans to schools for energy efficiency projects.

(£239.9m) net forecast underspend has been deducted from the department’s RDEL
limit.
42. Reductions on Programme

(£100.0m) given up from the academies GAG due to lower costs per pupil of minimum
funding guarantee protections, lower non recoupable elements of academies funding,
lower costs of special free schools pupils and fewer academy openers than initially
anticipated.
Transfers of Functions to and from Other Government Departments (OGDs)
43. There are a number of budget transfers both to and from the department, as a result of
machinery of government changes and the transfers of funding for joint projects to the lead
department. The net impact of the changes is to decrease departmental programme budgets
by £31.96 million. Tables 3 and 4 list the individual changes.
Table 3 - Transfers Out
Table 4 - Transfers In
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DfE Supplementary Estimate Memorandum 2014-15
Capital DEL
44. The department’s £5,030 million net capital control total has decreased by £273.9 million in the
Supplementary. In addition to some movements between budgets to reflect project
announcements made after the Main Estimate, a budget exchange of £275 million from this
financial year to the next has been agreed with HM Treasury. The changes to budgets are
outlined in Table 5 below.
Table 5 Capital DEL summary
Increase /
Supplementary
Main Estimate (Decrease) in
Estimate
Budget
budget
Budget
(£000s)
(£000s)
(£000s)
Section A: Activities to support all functions
15,140
15,140
Section B: School Infrastructure and Funding of Education
15,000
(200)
14,800
Section H: Education Funding Agency - excluding academies
4,502,337
(298,313)
4,204,024
Section I: Academies (Net)
497,673
24,540
522,213
Section Title
CAPITAL DEL CONTROL TOTAL
5,030,150
(273,973)
4,756,177
45. The reallocation of budgets, with an explanation of the changes, can be seen in the Table 6.
Table 6 Capital movements between sections
Reason for Change
Transfer from Contractual Liabilities to Secure
Accommodation to enable refurbishment work and
general upgrades to be carried out in secure children's
homes.
Allocation of Free School Meals budget held in Section
H into separate maintained and academy sector
budgets
Transfer of budget for energy efficiency loans.
Increase in capital limit for additional energy efficiency
loans funding transferred from RDEL
Transfer the capital budget for City Technology
Colleges to the academies budget line
Budget Exchange: carry over 2014-15 underspends
on school capital projects to fund schools projects in
2015-16
TOTAL
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Section B
Section H
£000
£000
(200)
Section I
£000
200
(20,856)
20,856
(2,000)
2,000
1,027
(457)
457
(275,000)
(200)
(298,313)
24,540
DfE Supplementary Estimate Memorandum 2014-15
Annually Managed Expenditure
46. In the Main Estimate the AME total was a £19.122 million credit for the net movement in
departmental provisions. The budget was a negative amount because the amounts released
from provisions to offset cash payments were expected to be higher than the amount the group
intended to set aside for future year’s costs. Although the departmental provisions have
increased by £12 million, it is the inclusion of information from academy trusts that has made a
significant change to this position. As a result the AME non-cash budgets have increased from
(£19.1m) to £650.2m to meet the costs related to the movement in various departmental
provisions and academies’ non-cash expenditure. The individual changes making up the
£669.3 million net increase are:

£500.0 million increase in the potential deficit allocated to academy trusts in relation to
their employees who are members of the Local Government Pension Scheme (LGPS) –
Section M. Further information on this spending became available after the Main
Estimate was prepared.

£74.0 million for the depreciation on donated assets has been transferred to Resource
AME in Section M.

£81.0 million increase resulting from the revaluation of assets at the point of conversion
to academy status given that the budget forecast returns do not give us any indication
of the revaluation adjustment.

£2.0 million increase in the potential movement on provisions for academies.

£5.8 million increase resulting from the creation of the Risk Protection Arrangement
(RPA) provision.

£6.5 million increase to the department’s other provisions.
47. The £500 million increase for the forecast movement in the LGPS pension deficit is based on
historical movements of liabilities, increased proportionately to reflect the expected higher
number of academies. The final movement on the LGPS pension fund depends on a number
of factors outside the department’s control and we will not know the final position until we
receive actuarial valuations in March 2015. It is therefore possible that (as in 2013-14) the final
outturn will be in excess of this provision, leading to an Excess Vote. The conversion of
maintained schools to academies does not change these liabilities, but it moves them from the
local authority sector to the central government sector, which therefore impacts on the
Estimate and on the department’s consolidated accounts.
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DfE Supplementary Estimate Memorandum 2014-15
Net Cash Requirement
48. The changes to budgets in the Supplementary Estimate decrease the Net Cash Requirement
by £585.2 million from £58,913.1 million to £58,327.9 million.
49. Table 7 details the reconciliation between the net resource total and the net cash requirement
by adding cash needed to support increases in payments (e.g. grant in aid, cash payments
from provisions), and deducting non-cash expenditure (e.g. depreciation, NDPBs resource
expenditure). The cash impacts of the Supplementary changes are listed in the ‘Change’
column.
Table 7 Net Resource to Net Cash reconciliation
50. This reduction in cash reflects the reduction in cash resource and capital programme budgets.
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DfE Supplementary Estimate Memorandum 2014-15
Departmental Control Totals
51. Table 8 shows how the Department’s control totals have been changed since the
Comprehensive Spending Review in 2010. It summarises changes to control totals during the
Spending Reviews held in 2010 and 2013. A more detailed breakdown of 2013-14 in year
changes from the Spending Review is provided at Annex B.
Table 8 Changes to control totals
DEL Admin Resource
CSR10
Main Estimate 2011-12
Supp 2011-12
Autumn Budget in Supp 11-12
Main Estimate 2012-13
Supp 2012-13
Main Estimate 2013-14
SR 2013
Supp 2013-14
Main Estimate 2014-15
Supp 2014-15
Main Estimate 2015-16
Supp 2015-16
DEL Prog Resource
CSR10
Main Estimate 2011-12
Supp 2011-12
Autumn Budget in Supp 11-12
Main Estimate 2012-13
Supp 2012-13
Main Estimate 2013-14
SR 2013
Supp 2013-14
Main Estimate 2014-15
Supp 2014-15
Main Estimate 2015-16
Supp 2015-16
DEL Total Resource
CSR10
Main Estimate 2011-12
Supp 2011-12
Autumn Budget in Supp 11-12
Main Estimate 2012-13
Supp 2012-13
Main Estimate 2013-14
SR 2013
Supp 2013-14
Main Estimate 2014-15
Supp 2014-15
Main Estimate 2015-16
Supp 2015-16
£000s
2011-12
£000s
2012-13
£000s
2013-14
£000s
2014-15
£000s
2015-16
485,000
(15,989)
(53,326)
415,685
451,000
(17,192)
438
(4,000)
(23,000)
100
407,346
421,000
(16,487)
443
(25,000)
(1,254)
378,702
392,000
(15,817)
448
(42,000)
(228)
(9,458)
(1,987)
322,958
304,835
(138)
(11,048)
2,536
2011-12
2012-13
2013-14
2014-15
2015-16
50,723,000
105,080
98,496
50,926,576
51,682,000
264,785
(18,848)
131,800
(15,000)
(68,459)
51,976,278
52,519,000
(247)
(20,800)
257,600
(37,000)
134,611
33,842
(396,095)
52,490,911
53,502,000
(275)
414,800
0
(36,000)
(233,181)
298,682
215,509
(6,658)
(400,538)
53,754,339
53,778,435
476,000
(8,777)
22,121
54,267,779
2011-12
2012-13
2013-14
2014-15
2015-16
51,208,000
89,091
45,170
51,342,261
52,133,000
247,593
(18,410)
127,800
(38,000)
(68,359)
52,383,624
52,940,000
(16,734)
(20,357)
232,600
(37,000)
134,611
33,842
(397,349)
52,869,613
53,894,000
(16,092)
415,248
(42,000)
(36,000)
(233,181)
298,682
215,281
(16,116)
(402,525)
54,077,297
54,083,270
475,862
(19,825)
24,657
54,563,964
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296,185
DfE Supplementary Estimate Memorandum 2014-15
Table 8 Changes to control totals (continued)
DEL Capital
CSR10
Main Estimate 2011-12
Supp 2011-12
Autumn Budget in Supp 11-12
Main Estimate 2012-13
Supp 2012-13
Main Estimate 2013-14
SR 2013
Supp 2013-14
Main Estimate 2014-15
Supp 2014-15
Main Estimate 2015-16
Supp 2015-16
AME
CSR10
Main Estimate 2011-12
Supp 2011-12
Autumn Budget in Supp 11-12
Main Estimate 2012-13
Supp 2012-13
Main Estimate 2013-14
SR 2013
Supp 2013-14
Main Estimate 2014-15
Supp 2014-15
Main Estimate 2015-16
Supp 2015-16
Totals by Event
CSR10
Main Estimate 2011-12
Supp 2011-12
Autumn Budget in Supp 11-12
Main Estimate 2012-13
Supp 2012-13
Main Estimate 2013-14
SR 2013
Supp 2013-14
Main Estimate 2014-15
Supp 2014-15
Main Estimate 2015-16
Supp 2015-16
£000s
2011-12
£000s
2012-13
£000s
2013-14
£000s
2014-15
£000s
2015-16
4,932,000
125,856
6,000
5,063,856
4,213,000
290,000
60,000
(61,400)
4,501,600
3,266,000
475,000
(60,000)
301,600
(1)
3,982,599
3,378,000
435,000
755,700
470,000
(8,550)
(273,973)
4,756,177
4,569,000
275,000
2011-12
2012-13
2013-14
2014-15
2015-16
156,447
(27,497)
(127,943)
1,007
282,342
(758)
(287,000)
1,076,384
1,070,968
384,221
(658)
(389,000)
(10,948)
258,893
242,508
472,092
(535)
(477,000)
1,544
(460)
(14,763)
669,335
650,213
(18,894)
4,304
-
(14,590)
2011-12
2012-13
2013-14
2014-15
2015-16
56,296,447
187,450
(76,773)
56,407,124
56,628,342
246,835
(305,410)
417,800
22,000
946,626
57,956,193
56,590,221
(17,392)
(409,357)
707,600
(97,000)
436,211
22,894
(138,457)
57,094,720
57,744,092
(16,627)
373,248
(42,000)
(36,000)
522,519
300,226
684,821
(39,429)
(7,163)
59,483,687
58,633,376
475,862
(15,521)
299,657
59,393,374
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4,844,000
DfE Supplementary Estimate Memorandum 2014-15
Provisions and Liabilities
52. There are four main categories of provisions for liabilities and charges. The balances at 31st
March 2014, as reported in the Annual Report and Accounts 2013-14, are shown in Table 9
below.
53. The purpose of the early departure provision is to recognise the department’s financial liability
to meet the additional costs of benefits beyond normal Principal Civil Service Pension Scheme
(PCSPS) benefits in respect of DfE employees who retire early, and compensation payments
payable to employees who take early severance.
54. The Retirement Compensation provision was created for the department’s liability to pay
premature retirement compensation to former teaching staff of ex-Grant Maintained Schools
and Colleges, and pension payments relating to the staff of former departmental bodies
(Schools Council, Training Commission and NDPBs).
55. The property provision was set up to meet the future lease costs of surplus properties which
were re-assigned to the Secretary of State when the Training and Enterprise Councils (TEC’s)
and former ALBs were closed. The property provision is expected to end in 2018.
56. Other provisions include various different categories of provisions held by ALBs and former
ALBs. These include a provision as a result of the finding of a Judicial Review into European
School Teachers relating to promotion and retirement rights, disputed utilities costs and equal
pay claims. The Judicial Review created an obligation for the group to make these payments to
European School Teachers. Details of other provisions held by the EAs and NDPBs can be
found in their individual annual reports and accounts.
Table 9 Provisions and liabilities
Analysis by provision type
Early
Departure
Costs
£000
Retirement
Compensation
£000
Property
Provision
£000
Others
£000
Total
£000
Balance at 1 April 2013
Provided for in year
Provisions not required and written
back
Provisions utilised in year
Borrowing costs (unwinding of
discount)
Change in HMT’s discount rate
18,130
604
159,965
1,929
6,180
1,501
9,454
4,706
193,729
8,740
(586)
(5,130)
(208)
(12,800)
(1,054)
(1,556)
(370)
(7,530)
(2,218)
(27,016)
293
122
3,562
6,450
Balance at 31 March 2014
13,433
158,898
(39)
2
5,034
-
3,816
6,574
6,260
183,625
57. A new departmental provision has been created this year for the costs associated with the Risk
Protection Arrangement (RPA) for academy trusts. The RPA was launched on 6th September
2014, and is an alternative to insurance for schools which opt into the scheme so that any
losses for those schools are covered by the department. It started on 1 September 2014. We
have created a £5.8m provision to meet the estimated costs of those claims in respect of 201415 which will become payable after the year end.
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DfE Supplementary Estimate Memorandum 2014-15
Contingent Liabilities
58. Contingent liabilities are potential liabilities that are uncertain, and the department will only
incur future expenditure if certain conditions are met or certain events happen. At the time of
the Supplementary Estimate, the department has twelve current contingent liabilities.
59. The following paragraphs provide more details of the individual indemnities and guarantees.
Statutory Contingent liabilities
60. Under paragraph 7 of the Schools Standards Framework Act 1998, the Secretary of State has
a statutory duty to indemnify any adjudicator against any reasonable cost and expense
reasonably incurred by the adjudicator in connection with any decision taken in pursuit of their
statutory duty for the Office of the Schools Adjudicator. The adjudicator’s decisions can be
challenged through judicial review. It is not possible to quantify the potential costs.
Non-Statutory Contingent liabilities
61. The department is providing an indemnity to local authorities for potential costs on buildings
they own, with existing Private Finance Initiative (PFI) arrangements, which will be used by
academy trusts. This type of indemnity is considered to be low risk and is only a feature of the
academies programme in very specific circumstances. These contingent liabilities only arise
where an academy trust is using a local authority building with an existing PFI contract; to date
the department has not received any claims against these PFI arrangements. At 31 March
2014 the liability was estimated at £2.1 billion. However we are reviewing the extent of the
liability and will be writing to Parliament in due course to provide the latest estimate. This will
be considerably higher, to reflect the number of academies with PFI liabilities. This contingent
liability does not change the liability across the public sector, it simply moves it from local
government to central government.
62. An indemnity for £5 million has been provided to Kent County Council for any unforeseen
liability in respect of contamination, defect or asbestos presence at the Duke of York Royal
Military school site.
63. The department has provided a £12.5 million guarantee to Tottenham Hotspur Property
Company in relation to a commercial lease arrangement for an academy trust site.
64. The department has provided a guarantee to cover costs that would arise from the reinstatement of the Free School Norwich’s building to its original condition in the event of its
closure. The department estimates that this stands now at £110,000.
65. Liabilities that arise from Commercial / Educational Procurement Centre staff who have been
made redundant and may seek redress through an Employment Tribunal. The estimated
exposure is £62,000.
66. It is important that senior staff likely to be running a school when it opens are involved and take
forward the development of the school from a very early stage. Consequently the group
engage Principals Designate, and meet the salary costs prior to a school opening. The
department has agreed to underwrite the salaries of Free Schools’ Principals Designate for up
to two terms in the event the schools do not open as planned. The department estimates the
current balance for this guarantee to be £330,000.
67. For the purpose of calculating employee contributions, the Local Government Pension Scheme
(LGPS) Administering Authorities view academy trusts as higher risk employers as they no
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DfE Supplementary Estimate Memorandum 2014-15
longer have the financial backing of the local authority. Consequently, academy trusts are
being asked to pay significantly higher LGPS employer contribution rates to those set when
they were a local authority maintained school. The department has agreed to guarantee that if
an academy closes, the group will meet any outstanding pension liabilities owed to LGPS. The
upper limit of the guarantee is currently £6.5 million. The purpose of the guarantee is to give
LGPS Administering Authorities the confidence they need to treat academies equitably, and
ensure that there is no significant divergence in employer contribution rates upon academy
conversion. A Parliamentary Minute was laid to report this new contingent liability in July 2012.
68. CET Westminster Free School, a free school project required urgent approval of an indemnity
to the Church Commissioners for the costs of potential legal challenge, without which the
project could not proceed. The indemnity expires on 31 March 2017. HM Treasury approval
was secured for up to £5 million. The Accounting Officer wrote to Chair of the Public Accounts
Committee on 21 August 2013, copied to the Education Select Committee, to seek approval
under the special reporting arrangements. This was followed up with a parliamentary minute
which was laid on 17 October 2013.
69. HM Treasury authorised the department to provide an indemnity and a guarantee to East
London University Technical College in the event of the termination of the Funding Agreement
for the cost of a fully serviced lease of up to £466,989.
70. The department has agreed to provide an indemnity to Free School, Tottenham University
Technology College. The indemnity covers the costs on the 35 year lease on the site up to
£16.5 million. This was approved by Treasury on 23 December 2013.
71. The department also has guaranteed Free Schools acting as guarantor in their tenant default
agreements with their landlords in case a Free School tenant is in breach of its lease. This
guarantee has an upper limit of £2.8 million.
Departmental Accounting Officer
72. This Memorandum has been prepared with reference to the guidance in the Estimate Manual
provided by HM Treasury and available on the House of Commons and Scrutiny Unit website.
73. The Departmental Accounting Officer has personal responsibility for the content in the
memorandum and formal approval of the memorandum has therefore been obtained prior to
submission to the Select Committee.
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DfE Supplementary Estimate Memorandum 2014-15
Annex A
Control Totals – Summary of Changes
Control Budget
Estimate Line
Administration
A Activities to Support all Functions
Children, Young People and Families
E
(NDPB)
F Standards and Testing Agency
National College for Teaching and
G
Leadership
Education Funding Agency (Excluding
H
Academies)
Administration Total
Programme
A Activities to Support all Functions
School Infrastructure and Funding of
B
Education (Department)
Education Standards, Curriculum and
C
Qualifications (Department)
Children, Young People and Families
D
(Department)
Children, Young People and Families
E
(NDPB)*
F Standards and Testing Agency
National College for Teaching and
G
Leadership
Education Funding Agency (Excluding
H
Academies)
I Academies (Net)
Departmental Unallocated Provision
Programme Total
Total DEL
J Activities to Support all Functions
Activities to Support all Functions
K
(NDPB's)
L Activities to Support all Functions (EA's)
M Academies (Net)
AME Total
Grand Total
Resource
Capital
2013-14 Outturn
Main
Estimate
Line Movement
DUP
AME
Transfers
with OGD's
Reclasses
Budget
Exchange
Resource
Total
Main
Estimate
Line
Movement
DUP
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Department
Resource Capital
Total
Capital
Total
£m
£m
£m
£m
223.3
0.7
-
-
(0.1)
0.8
(2.7)
221.9
-
-
-
-
-
-
-
221.9
240.3
-
1.8
-
-
-
-
-
-
1.8
-
-
-
-
-
-
-
1.8
12.2
-
5.3
0.3
-
-
-
-
-
5.6
-
-
-
-
-
-
-
5.6
5.6
-
20.1
(1.6)
-
-
-
-
-
18.6
-
-
-
-
-
-
-
18.6
21.4
-
74.4
0.7
-
-
-
-
-
75.1
-
-
-
-
-
-
-
75.1
80.4
-
324.9
0.1
-
-
(0.1)
0.8
(2.7)
323.0
-
-
-
-
-
-
323.0
359.9
-
35.5
1.2
(2.8)
-
-
-
-
33.8
15.1
-
15.1
49.0
33.4
2.4
176.9
0.7
(25.8)
-
-
-
-
151.8
15.0
(0.2)
-
-
-
-
14.8
166.6
128.1
(4.9)
328.8
(70.9)
(23.1)
-
(15.1)
-
-
219.7
-
-
-
-
-
-
-
219.7
174.0
-
427.6
(26.0)
(24.8)
-
(20.0)
-
-
356.8
-
-
-
-
-
-
-
356.8
296.2
(0.2)
1.1
-
-
-
-
-
-
1.1
-
-
-
-
-
-
-
1.1
119.0
1.9
45.7
-
(6.0)
-
-
-
-
39.7
-
-
-
-
-
-
-
39.7
36.7
-
478.7
26.2
(120.7)
-
-
-
-
384.3
-
-
-
-
-
-
-
384.3
375.7
-
37,770.8
(105.2)
64.9
-
3.1
-
-
37,733.6
4,502.3
(23.3)
-
-
-
(275.0)
4,204.0
41,937.6
37,871.1
2,893.7
14,889.8
54,154.9
54,479.8
(18.0)
(66.7)
0.8
(240.0)
(239.8)
-
12.2
(0.8)
(126.8)
(126.8)
-
5.7
(31.9)
(32.0)
-
(1.8)
(1.8) (1.0)
-
-
497.7
5,030.2
5,030.2
-
23.5
-
-
1.0
1.0
1.0
-
-
(275.0)
(275.0)
-
522.2
4,756.2
4,756.2
-
15,355.7
12,619.3
- 58,510.6
51,653.5
58,833.6
52,013.4
(12.3)
(9.8)
712.5
(2.7)
-
14,833.5
53,754.4
54,077.4
(12.3)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7.1
-
(1.1)
(239.8)
(126.8)
6.6
657.0
669.3
669.3
(32.0)
(1.0)
(2.7)
5.5
657.0
650.2
54,727.6
5,030.2
-
-
1.0
-
(275.0)
4,756.2
5.5
657.0
650.2
59,483.8
(0.8)
412.5
409.0
52,422.4
3,605.4
(19.1)
54,460.7
The DUP is the Departmental Unallocated Provision, the mechanism the department uses to collate savings before redistribution to priority areas, or to be returned to HM Treasury
26
08/02/2016 21:40
ReTransfers Budget
classes
with
Exchange
OGD's
£m
£m
£m
3,605.4
3,605.4
-
DfE Supplementary Estimate Memorandum 2014-15
Annex B
Detailed Breakdown of changes to Expenditure
Detailed Breakdown of Changes to Expenditure
Section / Expenditure
Main
Supplementary
Difference
(£m)
(£m)
(£m)
Activities to Support all Functions
273.9
270.8
(3.1)
276.1
Administration
Capital Investment
Other
223.3
15.1
35.5
221.8
15.1
33.8
(1.5)
(1.6)
240.3
2.4
33.4
School Infrastructure and Funding of
Education (Department)
191.9
166.6
(25.3)
123.1
Resource
Capital
176.9
15.0
151.8
14.8
(25.1)
-
128.1
(5.0)
Education Standards, Curriculum and
Qualifications (Department)
328.8
219.7
(109.0)
174.0
Resource
328.8
219.7
(109.0)
174.0
Children's Services and Departmental
Strategy (Department)
427.6
356.7
(70.9)
296.2
Resource
Capital
427.6
-
356.7
-
(70.9)
-
296.2
2.9
2.9
1.8
1.1
-
1.8
1.1
-
-
12.2
119.0
1.9
Standards and Testing Agency
51.0
45.4
(5.7)
42.3
Administration
Programmes
5.3
45.7
5.6
39.7
(6.0)
5.6
36.7
National College for Teaching and
Leadership
498.8
402.8
(96.0)
397.1
Administration
Programmes
Capital
20.1
478.7
-
18.6
384.3
-
(1.6)
(94.4)
-
21.4
375.7
0.0
Departmental Expenditure Limit
A.
B.
C.
D.
E.
Children's Services and Departmental
Strategy (NDPB) (Net)*
Admin
Programme
Capital
F.
G.
2013-14 Outturn
(£m)
-
133.1
*The outturn is taken from the 2013-14 Consolidated Annual Report and Accounts and includes outturn for the Childrens And Family Court Advisory
and Support Service,which transferred to the Ministry of Justice on 1 April 2014.
27
08/02/2016 21:40
DfE Supplementary Estimate Memorandum 2014-15
Detailed Breakdown of changes to Expenditure (continued)
Section / Expenditure
Departmental Expenditure Limit
H.
Education Funding Agency (Excluding
Academies)
Administration
Programmes
Of which majority funds:
Dedicated Schools Grant
Foundation Learning
Maintained Sixth Forms
L
2013-14 Outturn
(£m)
(£m)
(£m)
42,347.5
42,012.7
(334.8)
40,845.1
74.4
37,770.8
75.1
37,733.6
0.7
(37.2)
80.4
37,871.1
27,755.0
28,222.6
467.6
4,628.8
3,928.0
(700.7)
(£m)
821.0
(170.0)
1,798.0
(102.0)
Apprenticeships
781.6
806.1
24.5
Educational Services Grant
711.0
712.2
1.2
Capital
Of which majority funds:
4,502.3
4,204.0
(298.3)
Devolved
2,230.0
1,766.1
(463.9)
Targeted
2,060.6
2,226.8
166.2
95.0
95.0
0.0
Education Funding Agency - Academies
(Net)
15,387.4
15,355.7
(31.7)
13,331.8
Programmes
Capital
14,889.8
497.7
14,833.5
522.2
(56.3)
24.5
12,619.3
712.5
59,510.0
58,833.5
(676.5)
Departmental Expenditure Limit
Changes
Annually Managed Expenditure
K
Difference
991.0
Building Schools for the Future
J.
Supplementary
1,900.0
Pupil Premium
I.
Main
2,893.6
55,618.8
Activities to Support all Functions
(18.0)
(12.3)
5.7
(9.8)
Provisions
(18.0)
(12.3)
5.7
(9.8)
(1.1)
5.5
6.6
(0.8)
Provisions
Activities to Support all Functions
(NDPBs)
Provisions
(1.1)
5.5
6.6
(0.8)
-
-
Academies (Net)
-
Provisions, Pensions & Depreciation
Activities to Support all Functions
(Executive Agencies)
Annually Managed Expenditure
7.1
-
7.0
657.0
657.0
412.6
-
657.0
657.0
412.6
(19.1)
650.2
669.3
409.1
28
08/02/2016 21:40
DfE Supplementary Estimate Memorandum 2014-15
Annex C
Changes to Resource DEL since Spending Review 2010
Changes to 2014-15 control totals sinceSpending Review
2010
Spending Review 2010
2014-15
Admin
Programme
Total RDEL
Capital
AME
£000
£000
£000
£000
£000
392,000
53,502,000
53,894,000
3,378,000
472,092
of which:
Depreciation Ring Fence
20,000
9,000
29,000
-
-
Overseas Development Ring Fence
-
3,000
3,000
-
-
Pupil Premium Ring Fence
-
2,500,000
2,500,000
-
-
Non Ring-Fenced
372,000
50,990,000
51,362,000
3,378,000
472,092
2014-15 Control Total at Spending Review
392,000
53,502,000
53,894,000
3,378,000
472,092
-15,817
-872
-16,689
-
-
-
-
-
-
-535
Spending Policy
To OFQUAL to reflect their Spending Review Allocation
Release of Provisions
Budget Cover Transfers
To DCLG for the Public Sector Mapping Agreement
-
-63
-63
-
-
From DCLG for London Schools Councils
-
660
660
-
-
From DCLG for Academies LACSEG
-
-
-
-
-
Total Net Changes
-15,817
-275
-16,092
0
-535
Main Estimate 2011-12
376,183
53,501,725
53,877,908
3,378,000
471,557
of which:
Depreciation Ring Fence
20,000
8,128
28,128
-
-
Overseas Development Ring Fence
-
3,000
3,000
-
-
Pupil Premium Ring Fence
-
2,500,000
2,500,000
-
-
Non Ring-Fenced
356,183
50,990,597
51,346,780
3,378,000
471,557
2014-15 Control Total at Main Estimate 2011-12
376,183
53,501,725
53,877,908
3,378,000
471,557
-
-6,000
-6,000
-
-
-
-5,000
-5,000
-
-
922
-
922
-
-
-
16,200
16,200
-
-
-474
-25,000
-25,474
-
-
-42,000
-
-42,000
-
-
Disadvantaged 2 year olds
-
380,000
380,000
-
-
Not in Education, Employment or Training
-
42,000
42,000
-
-
Youth Contract
-
12,600
12,600
-
-
Free Schools
-
-
-
300,000
-
Additional School Places
-
-
-
135,000
-
-
-
-
-
-477,000
Total Net Changes
-41,552
414,800
373,248
435,000
-477,000
Supplementary Estimate 2011-12
334,631
53,916,525
54,251,156
3,813,000
-5,443
Changes in Supplementary 2011-12
Budget Cover Transfers
To the Home Office for the UK Border Agency
To DCLG for Troubled Families
From DWP for the Joint International Unit
From BIS for International Education
Machinery of Government Change
To DCLG for Troubled Families
Autumn Statement
Administration Savings back to Treasury
Draw down of additional funding
Of which:
Spending Policy
VAT Refund Scheme to/from HM Treasury
of which:
Depreciation Ring Fence
20,000
8,128
28,128
-
-
Overseas Development Ring Fence
-
3,000
3,000
-
-
Pupil Premium Ring Fence
-
2,500,000
2,500,000
-
-
Non Ring-Fenced
314,631
51,405,397
51,720,028
3,813,000
-5,443
2014-15 Control Total at Supplementary Estimate 2011-12
334,631
53,916,525
54,251,156
3,813,000
-5,443
29
08/02/2016 21:40
DfE Supplementary Estimate Memorandum 2014-15
Changes to Resource DEL since Spending Review 2010 (continued)
Changes to 2014-15 control totals since Spending Review
2010
2014-15
Admin
£000
Programme
£000
Total RDEL
£000
Capital
£000
AME
£000
Changes in Main Estimate 2012-13
Budget Cover Transfers
To Ministry of Justice for Youth Justice Board
From DCMS for Basic Needs
-
-36,000
-36,000
-
-
-
-
-
-
-
To DCMS from Basic Needs
-
-
-
-
-
Total Net Changes
-
-36,000
-36,000
-
334,631
53,880,525
54,215,156
Main Estimate 2012-13
3,813,000
-5,443
of which:
Depreciation Ring Fence
20,000
6,586
26,586
-
-
Overseas Development Ring Fence
-
3,000
3,000
-
-
Pupil Premium Ring Fence
-
2,500,000
2,500,000
-
-
Non Ring-Fenced
314,631
51,370,939
51,685,570
3,813,000
-5,443
2014-15 Control Total at Main Estimate 2012-13
334,631
53,880,525
54,215,156
3,813,000
-5,443
Changes in Supplementary 2012-13
Budget Cover Transfers
Transfer to CO National Citizens Service
-
-140,000
-140,000
-
-
Transfer to BIS Estates (CSR10 Error)
-
-2,800
-2,800
-
-
Transfer to OFSTED Thematic Surveys
-
-361
-361
-
-
Transfer to DFID for ODA
-
-3,000
-3,000
-
-
Transfer from BIS ISPs
-
0
0
7,500
-
Transfer to MOD Cadet Funding
-
-900
-900
-1,700
-
Resource Budget Savings
-
-306,120
-306,120
-
-
Basic Need
-
-
-
592,900
-
Schools Maintenance
-
-
-
157,000
-
Budget Exchange
-
220,000
220,000
-
-
Total Net Changes
-
-233,181
-233,181
53,647,344
53,981,975
Autumn Statement
Of which:
Supplementary Estimate 2012-13
334,631
755,700
-
4,568,700
-5,443
of which:
Depreciation Ring Fence
20,000
6,586
26,586
-
0
2,500,000
2,500,000
-
Non Ring-Fenced
314,631
51,140,758
51,455,389
4,568,700
-5,443
2014-15 Control Total at Supplementary Estimate 2012-13
334,631
53,647,344
53,981,975
4,568,700
-5,443
Transfer to CLG (EIG)
-
-1,600,026
-1,600,026
-
-
Transfer from CLG LACSEG
-
1,028,806
1,028,806
-
-
Transfer from DWP Early Intervention Foundation
-
500
500
-
-
Transfer to BIS Career Helpline
-
-4,695
-4,695
-
-
Academy Depreciation
-
1,025,000
1,025,000
-
-
Budget Reduction
-
-150,903
-150,903
-
-
AME
-
0
0
-
-
Provision Utilisation changes
-
0
0
-
1,544
-
1,544
Pupil Premium Ring Fence
-
Main Estimate 2013-14 Changes affecting 2014-15
Transfers
Total Net Changes
Main Estimate 2013-14
334,631
of which:
Depreciation Ring Fence
20,000
298,682
298,682
53,946,026
54,280,657
4,568,700 -
3,899
0
0
-
-
1,031,586
1,051,586
-
-
Overseas Development Ring Fence
-
0
0
-
Pupil Premium Ring Fence
-
2,500,000
2,500,000
-
-
Non Ring-Fenced
314,631
50,414,440
50,729,071
4,568,700
-3,899
2014-15 Control Total at Main Estimate 2013-14
334,631
53,946,026
54,280,657
4,568,700
-3,899
30
08/02/2016 21:40
DfE Supplementary Estimate Memorandum 2014-15
2014-15
Changes to 2014-15 control totals since Spending Review
2010
Spending Review 2013
Admin
£000
334,631
of which:
Depreciation Ring Fence
Programme
£000
-
Total RDEL
£000
53,946,026
-
20,000
Capital
£000
54,280,657
-
1,031,586
-
1,051,586
-
AME
£000
4,568,700
-3,899
-
-
-
-
-
-
Overseas Development Ring Fence
-
Pupil Premium Ring Fence
-
2,500,000
2,500,000
Non Ring-Fenced
314,631
50,414,440
50,729,071
4,568,700
-3,899
2014-15 Control Total at Spending Review
334,631
53,946,026
54,280,657
4,568,700
-3,899
-
-
Supplementary Estimate 2013-14 Changes
Transfers
Transfer to Welsh Assembly
-
-168
-168
-
-
Transfer to DCMS - Child Internet Safety
-138
0
-138
-
-
MOG Transfer to Cab Office - BYC
0
-300
-300
-
-
MOG Transfer to Cab Office - Kids Company
0
-2,750
-2,750
-
-
Transfer from BIS - 19+ in Sixth Forms
0
3,056
3,056
-
-
Transfer from BIS - 19+ in Sixth Forms
0
28
28
-
-
Transfer from DCLG - Early Int Foundation
0
248
248
-
-
-90
-3,000
-3,090
-
-
-
-63,605
-63,605
-
-
Unprotected Resource back to Treasury
-
-167,000
-167,000
-
-
Free School Meals - Infant
-
419,000
419,000
-
-
Free School Meals - 6th Forms
-
30,000
30,000
-
-
Free School Meals - Kitchens
-
-
-
70,000
-
BIS - ERASMUS
Spending Policy
Carbon Reduction commitment
Autumn Statement
Of which:
AME
Change in provision
-
-
-
-
Budget Exchange
-
-
-
400,000
Total Net Changes
Supplementary Estimate 2013-14
-460
-
-228
215,509
215,281
470,000
-460
314,403
50,629,949
50,944,352
5,038,700
-4,359
20,000
of which:
Depreciation Ring Fence
1,031,586
1,051,586
Free School Meals Ring Fence
-
449,000
449,000
Pupil Premium Ring Fence
-
2,500,000
2,500,000
-
-
70,000
-
-
-
Non Ring-Fenced
314,403
50,180,949
50,495,352
4,968,700
-4,359
2014-15 Control Total at Supplementary Estimate 2013-14
334,403
54,161,535
54,495,938
5,038,700
-4,359
-9,458
Main Estimate 2014-15 Changes
Transfers
MOG CAFCASS to MoJ
-108,900
-118,358
-
-
MOG Contact to MoJ
-
-6,500
-6,500
-
-
MOG to Health - Can Parent
-
-1,141
-1,141
-
-
Transfer Adult Learning from BIS
-
56,760
56,760
-
-
MOG Erasmus to BIS
-
-
-
-
-
Transfer to HMT for Priority Schools Building Programme
-
-
-
-8,550
-
Transfer to OFQUAL KS4 Reference Development
-
-1,500
-1,500
-
-
Transfer to OFQUAL A Levels GCSE Reform
-
-2,000
-2,000
-
-
MOG from OFSTED ORCD
-
623
623
-
-
Apprenticeships
-
56,000
56,000
-
-
Pupil Premium
-
-
-
-
-
AME
-
-
-
-
-
AME Provisions
-
-
-
-
-14,763
Budget Measures
Total Net Changes
Main Estimate 2014-15
-9,458
-6,658
-16,116
-8,550
-14,763
324,945
54,154,877
54,479,822
5,030,150
-19,122
19,434
of which:
Depreciation Ring Fence
1,031,586
1,051,020
Free School Meals Ring Fence
-
449,000
449,000
-
-
70,000
Age Apprenticeships Grants for Employers
-
56,000
-
56,000
-
Pupil Premium Ring Fence
-
-
2,500,000
2,500,000
-
-
Non Ring-Fenced
305,511
50,118,291
50,423,802
4,960,150
-19,122
Control Total at Main Estimate 2014-15
324,945
31
54,154,877
54,479,822
5,030,150
-19,122
08/02/2016 21:40
DfE Supplementary Estimate Memorandum 2014-15
Changes to Resource DEL since Spending Review 2010 (Continued)
2014-15
Changes to 2014-15 control totals since Spending Review
2010
Admin
£000
Programme
£000
Total RDEL
£000
Capital
£000
AME
£000
Supplementary Estimate 2014-15 Changes
Transfers
Transfer to Ofsted - Reform
-
-14,550
-14,550
-
-
Transfer to Ofsted - EY Inspections
-
-5,000
-5,000
-
-
Transfer to BIS - 19+ in Sixth Forms
-
-28
-28
-
-
Transfer to Ofqual - IT Reform
-
-500
-500
MOG to DH - Nursery Milk
-
-1,423
-1,423
-
-
MOG to DCMS - Booktrust project
-
-6,000
-6,000
-
-
MOG to DWP - Relationship Support
-
-7,500
-7,500
-
-
-33
-
-
MOG to DWP - Relationship Support
-33
-
-
MOG to MoJ - Contact Centres
-
-130
-130
-
-
MOG to MoJ - Contact Centres
-131
-
-131
-
-
Transfer from BIS - 19+ in Sixth Forms
-
3,170
3,170
-
-
Budget Reduction
-
-568,600
-568,600
-
-
Reclassification
RPA admin costs
750
-750
-
-
-
-
-
-
-
-
Increase in Budget
-
-
-
-
-
Academies Depreciation
-
201,800
201,800
-
-
Salix loans
-
-1,027
-1,027
Autumn Statement VAT baseline adj
-305
-
-305
-
Cash rebate
432
-
432
-
-
AME
-
-
-
-
669,335
-2,700
-
-2,700
Budget Exchange
Total Net Changes
Supplementary Estimate 2014-15
1,027
-
-275,000
-
-1,987
-400,538
-402,525
-273,973
669,335
322,958
53,754,339
54,077,297
4,756,177
650,213
19,434
of which:
Depreciation Ring Fence
1,233,386
1,252,820
-
73,000
Free School Meals Ring Fence
-
449,000
449,000
70,000
-
Age Apprenticeships Grants for Employers
-
56,000
56,000
-
-
Youth Contract
-
42,000
42,000
-
-
Pupil Premium Ring Fence
-
2,542,000
2,542,000
-
Non Ring-Fenced
303,524
49,431,953
49,735,477
4,686,177
577,213
Control Total at Supplementary Estimate 2014-15
322,958
53,754,339
54,077,297
4,756,177
650,213
32
08/02/2016 21:40
-
DfE Supplementary Estimate Memorandum 2014-15
Annex D
Budgetary Limits Outturn and Plans 2008-09 to 2015-16
The following table shows DEL and AME Budgets for the SR period (and outturn for 2008-09 to
201-14) split by Resource and Capital (and showing Administration within Resource). These
Budgets have been restated for prior years to reflect the impact of the full Clear Line of Sight
changes, introduced in 2012-13 to align budgets, Estimates and Accounts.
Budgetary Limits
Outturn
Outturn
Outturn
Outturn
Outturn
Outturn
Plans
Plans
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
£m
£m
£m
£m
£m
£m
£m
£m
Departmental Expenditure Limit
Resource
Administration
392.5
395.5
409.9
373.9
387.6
359.9
323.0
296.2
Programme
46,265.0
49,016.3
50,071.0
49,907.5
51,689.1
51,653.4
53,754.3
54,267.8
46,657.5
49,411.8
50,480.9
50,281.4
52,076.7
52,013.3
54,077.3
54,564.0
5,523.7
7,441.9
7,124.3
5,042.2
4,258.8
3,605.5
4,756.2
4,844.0
5,523.7
7,441.9
7,124.3
5,042.2
4,258.8
3,605.5
4,756.2
4,844.0
Total Resource
Capital
Programme
Total Capital
Annually Managed Expenditure
Resource
Programme
Total Resource
(11)
(30)
(51)
64
178
409
650
(15)
(11)
(30)
(51)
64
178
409
650
(15)
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DfE Supplementary Estimate Memorandum 2014-15
Annex E
Explanation of key terms used in the Memorandum
Accounting Officer
A person appointed by the Treasury or designated by a department to be accountable for the
operations of an organisation and the preparation of its accounts. The appointee is, by convention,
usually the head of a Department or other organization, or the Chief Executive of an Arm’s Length
Body (ALB).
Administration Costs
A Treasury control on resources consumed directly by departments and agencies/NDPBs that
forms part of the Departmental Expenditure Limit (DEL). It includes staff costs, accommodation
and other overheads where they are not directly associated with frontline service delivery.
Ambit
The ambits are set out in Part I of the Departmental Estimate. Separate ambits are required for
both expenditure and income in each budgetary category included in the Estimate (DEL, AME and
non-budget). The ambit describes the activities for which provision sought in the Estimate will be
used.
Annually Managed Expenditure
AME is spending included in Total Managed Expenditure (TME), which does not fall within
Departmental Expenditure Limits (DELs). Expenditure in AME is generally less predictable and
controllable than expenditure in DEL.
Departmental Expenditure Limit
This is spending within the department’s direct control and which can therefore be planned over an
extended period, such as the costs of its own administration, payments to local authorities and
third parties, within education programmes.
Net Cash Requirement
The limit voted by Parliament reflecting the maximum amount of cash that can be released from
the Consolidated Fund to a department in support of expenditure in its Estimate.
Section
An Estimate line within the Part II: Subhead detail table in an Estimate.
34
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Department for Education Supplementary Estimates