DfE Supplementary Estimate Memorandum 2014-15
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
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 d epartment’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
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
Main
Estimate
2014-15
£m
54,479.8
3,551.1
2,500.1
1,051.0
-
-
-
5,030.1
-
59,509.9
Supplementary
Estimate
2014-15
£m
54,077.3
4,300.1
2,500.1
1,253.0
449.0
56.0
42.0
4,756.1
70.0
70.0
58,833.4
Variance
£m
(402.5)
749.0
-
202.0
449.0
56.0
42.0
(274.0)
70.0
70.0
(676.5)
(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
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 Expend iture 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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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 2014-
15, 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. T he £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.
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
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.
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 d epartment’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.
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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DfE Supplementary Estimate Memorandum 2014-15
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
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.
9%
24%
H
A
0%
6%
14% A Activities to Support all Functions
B
I
C
27%
B School Infrastructure and Funding of Education (Department)
C Education Standards, Curriculum and Qualifications (Department)
D Children's Services and
Departmental Strategy (Department)
F Standards and Testing Agency
G
D
G National College and Training
Agency
H Education Funding Agency -
Excluding Academies
I Academies (Net)
18%
2%
F
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 School infrastructure and funding of education

C Education standards, curriculum and qualifications

D Children ’s services

F Standards and Testing Agency (STA )

G National College for Teaching and Leadership (NCTL)

H Education Funding Agency (EFA)

I Net academies.
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DfE Supplementary Estimate Memorandum 2014-15
Main Estimate Budget
Budget reallocations (to)/from other parts of DfE
Reductions on Programme
Increase / (decrease) in Section B
Supplementary Estimate
Summary of Changes
24. Budget reallocations to/from other parts of DfE ( £1.9m)
£000
176,914
Para
1,909
24
(27,000)
25
(25,091)
151,823
 £ 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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DfE Supplementary Estimate Memorandum 2014-15
Main Estimate Budget
Budget reallocations (to)/from other parts of DfE
Transfers to OGDs
Reductions on Programme
Increase / (decrease) in Section C
Supplementary Estimate
Summary of Changes
26. Budget reallocations to/from other parts of DfE
(£63.9m) comprise:
£000
328,776
Para
(63,849)
26
(15,050)
27
(30,148)
28
(109,047)
219,729
 (£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.
Main Estimate Budget
Budget reallocations (to)/from other parts of DfE
Transfers to OGDs
Reductions on Programme
Increase / (decrease) in Section D
Supplementary Estimate
£000
427,625
(22,213)
(20,053)
(28,621)
(70,887)
356,738
Para
29
30
31
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.
Main Estimate Budget
Budget reallocations
Reductions on Programme
Increase / (decrease) in Section F
Supplementary Estimate
Summary of Changes
32. Budget reallocations
£000
45,702
1,800
(7,800)
(6,000)
39,702
Para
32
33
 £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.
Main Estimate Budget
Budget reallocations (to)/from other parts of DfE
Reductions on Programme
Increase / (decrease) in Section G
Supplementary Estimate
£000
478,698
26,522
(120,953)
(94,431)
384,267
Para
34
35
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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.
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
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£000
37,770,818
Para
(173,100)
36
179,866
37
3,142
38
(47,102)
39
(37,194)
37,773,624

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
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
Summary of Changes
40. Transfers to academies from the EFA (see paragraph 36)
£000
14,889,771
(56,243)
14,833,528
Para
173,100
40
(129,343)
41
(100,000)
42
 £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.
16
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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.
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
44. T he 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 e xchange 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
Section Title
Section A: Activities to support all functions
Section B: School Infrastructure and Funding of Education
Section H: Education Funding Agency - excluding academies
Section I: Academies (Net)
Main Estimate
Budget
(£000s)
15,140
15,000
4,502,337
497,673
Increase /
(Decrease) in budget
(£000s)
-
(200)
(298,313)
24,540
Supplementary
Estimate
Budget
(£000s)
15,140
14,800
4,204,024
522,213
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
Section B Section H Section I
£000 £000 £000
(200) 200
(20,856)
(2,000)
(457)
(275,000)
(200) (298,313)
20,856
2,000
1,027
457
24,540
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DfE Supplementary Estimate Memorandum 2014-15
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
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
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
£000s
2011-12
485,000
(15,989)
(53,326)
-
-
-
-
-
-
-
-
-
-
415,685
£000s
2012-13
451,000
(17,192)
438
(4,000)
(23,000)
-
100
-
-
-
-
-
-
407,346
£000s
2013-14
421,000
(16,487)
443
(25,000)
-
-
-
-
(1,254)
-
-
-
-
378,702
£000s
2014-15
392,000
(15,817)
448
(42,000)
-
-
-
-
(228)
(9,458)
(1,987)
-
-
322,958
£000s
2015-16
-
-
-
-
-
-
-
304,835
(138)
(11,048)
2,536
296,185
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
2011-12
50,723,000
105,080
98,496
-
-
-
-
-
-
-
-
-
-
50,926,576
2012-13
51,682,000
264,785
(18,848)
131,800
(15,000)
(68,459)
-
-
-
-
-
-
-
51,976,278
2013-14
52,519,000
(247)
(20,800)
257,600
(37,000)
134,611
33,842
-
(396,095)
-
-
-
-
52,490,911
2014-15 2015-16
53,502,000
(275)
414,800
0
(36,000)
(233,181)
-
-
-
-
-
-
298,682
-
215,509
(6,658)
-
53,778,435
476,000
(8,777)
22,121 (400,538)
-
-
53,754,339 54,267,779
2011-12
51,208,000
89,091
45,170
-
-
-
-
-
-
-
-
-
-
51,342,261
2012-13
52,133,000
247,593
(18,410)
127,800
(38,000)
(68,359)
-
-
-
-
-
-
-
52,383,624
2013-14
52,940,000
(16,734)
(20,357)
232,600
(37,000)
134,611
33,842
-
(397,349)
-
-
-
-
52,869,613
2014-15 2015-16
53,894,000
(16,092)
415,248
(42,000)
(36,000)
(233,181)
298,682
-
215,281
(16,116)
(402,525)
-
-
-
-
-
-
-
-
54,083,270
475,862
(19,825)
24,657
-
-
54,077,297 54,563,964
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DfE Supplementary Estimate Memorandum 2014-15
Table 8 Changes to control totals (continued)
£000s
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
2011-12
4,932,000
125,856
6,000
-
-
-
-
-
-
-
-
-
-
5,063,856
£000s
2012-13
4,213,000
-
-
290,000
60,000
(61,400)
-
-
-
-
-
-
-
4,501,600
£000s
2013-14
3,266,000
-
-
475,000
(60,000)
301,600
-
-
(1)
-
-
-
-
3,982,599
£000s
2014-15
3,378,000
-
435,000
-
-
755,700
-
-
470,000
(8,550)
(273,973)
-
-
4,756,177
£000s
2015-16
-
-
-
-
-
-
-
4,569,000
-
-
275,000
4,844,000
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
2011-12
156,447
(27,497)
(127,943)
-
-
-
-
-
-
-
-
-
-
1,007
2012-13
282,342
(758)
(287,000)
-
-
1,076,384
-
-
-
-
-
-
-
1,070,968
2013-14
384,221
(658)
(389,000)
-
-
-
(10,948)
-
258,893
-
-
-
-
242,508
2014-15
472,092
(535)
(477,000)
-
-
-
1,544
-
(460)
(14,763)
669,335
-
-
650,213
2015-16
-
-
-
-
-
-
-
(18,894)
-
4,304
-
(14,590)
2011-12
56,296,447
187,450
(76,773)
-
-
-
-
-
-
-
-
-
-
56,407,124
2012-13
56,628,342
246,835
(305,410)
417,800
22,000
946,626
-
-
-
-
-
-
-
57,956,193
2013-14
56,590,221
(17,392)
(409,357)
707,600
(97,000)
436,211
22,894
-
(138,457)
-
-
-
-
57,094,720
2014-15 2015-16
57,744,092
(16,627)
373,248
(42,000)
(36,000)
522,519
300,226
-
-
-
-
-
-
684,821
(39,429)
(7,163)
-
-
58,633,376
475,862
(15,521)
299,657
-
-
-
-
59,483,687 59,393,374
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DfE Supplementary Estimate Memorandum 2014-15
52. There are four main categories of provisions for liabilities and charges. The balances at 31 st
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 reassigned 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
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
Balance at 31 March 2014
Early
Departure Retirement
Costs
£000
Compensation
£000
18,130
604
159,965
1,929
(586)
(5,130)
293
122
13,433
(208)
(12,800)
3,562
6,450
158,898
Property
Provision
£000
6,180
1,501
(1,054)
(1,556)
(39)
2
5,034
Others
£000
9,454
4,706
(370)
(7,530)
-
-
6,260
Total
£000
193,729
8,740
(2,218)
(27,016)
3,816
6,574
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 6 th 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 2014-
15 which will become payable after the year end.
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DfE Supplementary Estimate Memorandum 2014-15
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 estimat ed 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
24
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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.
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
Control Budget Resource
Estimate Line
Main
Estimate
Line Movement
£m £m
DUP
£m
AME
£m
Transfers with OGD's
Reclasses
Budget
Exchange
Resource
Total
£m £m £m £m
Capital
Main
Estimate
Line
Movement
DUP
£m £m £m
2013-14 Outturn
Reclasses
£m
Transfers with
OGD's
Budget
Exchange
£m £m
Capital
Total
Department
Total
Resource Capital
£m £m £m £m
Administration
A Activities to Support all Functions
E
Children, Young People and Families
(NDPB)
F Standards and Testing Agency
G
National College for Teaching and
Leadership
H
Education Funding Agency (Excluding
Academies)
Administration Total
Programme
A Activities to Support all Functions
B
School Infrastructure and Funding of
Education (Department)
C
Education Standards, Curriculum and
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
H
Leadership
Education Funding Agency (Excluding
Academies)
I Academies (Net)
Departmental Unallocated Provision
Programme Total
Total DEL
J Activities to Support all Functions
K
Activities to Support all Functions
(NDPB's)
L Activities to Support all Functions (EA's)
M Academies (Net)
AME Total
Grand Total
223.3
1.8
5.3
20.1
74.4
324.9
35.5
176.9
328.8
427.6
1.1
45.7
478.7
37,770.8
14,889.8
-
54,154.9
54,479.8
(18.0)
-
(1.1)
-
(19.1)
54,460.7
0.7
0.1
1.2
0.7
(70.9)
(26.0)
-
-
26.2
(105.2)
(66.7)
0.8
(240.0)
(239.8)
-
-
-
(239.8)
-
-
0.7
-
0.3
(1.6)
(2.8)
(25.8)
(23.1)
-
(6.0)
(120.7)
64.9
12.2
(0.8)
(126.8)
(126.8)
-
-
-
(126.8)
-
-
-
-
-
-
-
-
(24.8)
-
-
-
-
-
-
-
-
-
-
-
6.6
657.0
669.3
669.3
-
5.7
-
-
-
-
-
-
-
-
(0.1)
-
-
(15.1)
(20.0)
3.1
-
-
(31.9)
(32.0)
-
-
-
(32.0)
-
-
-
-
-
(0.1)
-
-
-
0.8
-
-
-
-
0.8
-
(1.8)
-
(1.8) -
(1.0)
-
-
-
(1.0)
-
-
-
-
-
-
-
-
-
(2.7)
-
-
-
-
(2.7)
(2.7)
-
-
-
(2.7)
-
-
-
-
-
-
-
-
-
-
-
-
221.9
1.8
5.6
18.6
75.1
323.0
33.8
151.8
219.7
356.8
1.1
39.7
384.3
37,733.6
14,833.5
-
53,754.4
54,077.4
(12.3)
-
5.5
657.0
650.2
54,727.6
15.1
15.0
-
-
4,502.3
497.7
-
5,030.2
5,030.2
-
-
-
5,030.2
-
-
-
-
-
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
-
-
-
-
-
-
-
-
-
-
(0.2)
-
(23.3)
23.5
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.0
-
1.0
1.0
-
-
-
1.0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(275.0)
-
-
(275.0)
(275.0)
-
-
-
(275.0)
-
-
-
-
-
15.1
14.8
-
-
4,204.0
522.2
-
4,756.2
4,756.2
-
-
-
4,756.2
-
-
-
-
-
-
-
-
-
-
-
221.9
1.8
5.6
18.6
75.1
323.0
49.0
166.6
219.7
356.8
240.3
12.2
5.6
21.4
80.4
359.9
33.4
128.1
174.0
296.2
1.1
39.7
384.3
119.0
36.7
375.7
41,937.6
37,871.1
15,355.7
-
58,510.6
58,833.6
(12.3)
12,619.3
51,653.5
52,013.4
(9.8)
7.1
5.5
657.0
650.2
59,483.8
(0.8)
412.5
409.0
52,422.4
2.4
(4.9)
-
1.9
-
-
2,893.7
712.5
3,605.4
3,605.4
-
-
-
3,605.4
-
-
-
-
-
-
-
-
(0.2)
26
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DfE Supplementary Estimate Memorandum 2014-15
Annex B
Detailed Breakdown of Changes to Expenditure
Section / Expenditure Main
Departmental Expenditure Limit (£m)
Supplementary
(£m)
Difference 2013-14 Outturn
(£m) (£m)
A.
Activities to Support all Functions
Administration
Capital Investment
Other
273.9
223.3
15.1
35.5
270.8
221.8
15.1
33.8
(3.1)
(1.5)
-
(1.6)
276.1
240.3
2.4
33.4
B.
School Infrastructure and Funding of
Education (Department)
Resource
Capital
C.
Education Standards, Curriculum and
Qualifications (Department)
Resource
191.9
176.9
15.0
166.6
151.8
14.8
(25.3)
(25.1)
-
123.1
128.1
(5.0)
328.8
328.8
219.7
219.7
(109.0)
(109.0)
174.0
174.0
D.
Children's Services and Departmental
Strategy (Department)
Resource
Capital
427.6
427.6
-
356.7
356.7
-
(70.9)
(70.9)
-
-
296.2
296.2
E.
F.
Children's Services and Departmental
Strategy (NDPB) (Net)*
Admin
Programme
Capital
Standards and Testing Agency
Administration
Programmes
2.9
1.8
1.1
-
51.0
5.3
45.7
2.9
1.8
1.1
-
45.4
5.6
39.7
(5.7)
(6.0)
-
-
-
-
133.1
12.2
119.0
1.9
42.3
5.6
36.7
G.
National College for Teaching and
Leadership
Administration
Programmes
Capital
498.8
20.1
478.7
-
402.8
18.6
384.3
-
(96.0)
(1.6)
(94.4)
-
397.1
21.4
375.7
0.0
*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
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DfE Supplementary Estimate Memorandum 2014-15
Section / Expenditure Main Supplementary Difference 2013-14 Outturn
Departmental Expenditure Limit
H.
Education Funding Agency (Excluding
Academies)
Administration
Programmes
Of which majority funds:
Dedicated Schools Grant
Foundation Learning
Maintained Sixth Forms
Pupil Premium
Apprenticeships
Educational Services Grant
Capital
Of which majority funds:
Devolved
Targeted
Building Schools for the Future
42,347.5
74.4
37,770.8
27,755.0
4,628.8
991.0
1,900.0
781.6
711.0
4,502.3
(£m)
2,230.0
2,060.6
95.0
(£m)
42,012.7
75.1
37,733.6
28,222.6
3,928.0
821.0
1,798.0
806.1
712.2
4,204.0
1,766.1
2,226.8
95.0
(£m)
(334.8)
0.7
(37.2)
467.6
(700.7)
(170.0)
(102.0)
24.5
1.2
(298.3)
(463.9)
166.2
0.0
(£m)
40,845.1
80.4
37,871.1
2,893.6
I.
Education Funding Agency - Academies
(Net)
15,387.4
Programmes
Capital
14,889.8
497.7
Departmental Expenditure Limit
Changes
Annually Managed Expenditure
59,510.0
15,355.7
14,833.5
522.2
58,833.5
J.
K
L
Activities to Support all Functions
Provisions
Activities to Support all Functions
(Executive Agencies)
Provisions
Activities to Support all Functions
(NDPBs)
Provisions
Academies (Net)
Provisions, Pensions & Depreciation
(18.0)
(18.0)
(1.1)
(1.1)
-
-
-
(12.3)
(12.3)
5.5
5.5
-
657.0
657.0
Annually Managed Expenditure (19.1) 650.2
(31.7)
(56.3)
24.5
13,331.8
12,619.3
712.5
(676.5) 55,618.8
657.0
657.0
-
5.7
5.7
6.6
6.6
669.3
(9.8)
(9.8)
(0.8)
(0.8)
7.1
7.0
412.6
412.6
409.1
28
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DfE Supplementary Estimate Memorandum 2014-15
Changes to 2014-15 control totals sinceSpending Review
2010
Admin
£000
392,000
Programme
£000
53,502,000
2014-15
Total RDEL
£000
53,894,000
Capital
£000
3,378,000 Spending Review 2010 of which:
Depreciation Ring Fence
Overseas Development Ring Fence
Pupil Premium Ring Fence
Non Ring-Fenced
2014-15 Control Total at Spending Review
20,000
-
-
372,000
392,000
9,000
3,000
2,500,000
50,990,000
53,502,000
29,000
3,000
2,500,000
51,362,000
53,894,000
3,378,000
3,378,000
-
-
-
Spending Policy
To OFQUAL to reflect their Spending Review Allocation
Release of Provisions
Budget Cover Transfers
To DCLG for the Public Sector Mapping Agreement
From DCLG for London Schools Councils
From DCLG for Academies LACSEG
Total Net Changes
Main Estimate 2011-12 of which:
Depreciation Ring Fence
Overseas Development Ring Fence
Pupil Premium Ring Fence
Non Ring-Fenced
2014-15 Control Total at Main Estimate 2011-12
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
-15,817
-
-15,817
376,183
-
-
-
20,000
-
-
356,183
376,183
922
-
-
-
-474
-872
-
-63
660
-
-275
53,501,725
8,128
3,000
2,500,000
50,990,597
53,501,725
-6,000
-5,000
-
16,200
-25,000
-16,689
-
-63
660
-
-16,092
53,877,908
28,128
3,000
2,500,000
51,346,780
53,877,908
-6,000
-5,000
922
16,200
-25,474
-
-
-
-
-
-
-
0
3,378,000
-
-
-
-
3,378,000
-
-
3,378,000
Autumn Statement
Administration Savings back to Treasury
Draw down of additional funding
Of which:
Disadvantaged 2 year olds
Not in Education, Employment or Training
Youth Contract
Free Schools
Additional School Places
Spending Policy
VAT Refund Scheme to/from HM Treasury
Total Net Changes
Supplementary Estimate 2011-12 of which:
Depreciation Ring Fence
Overseas Development Ring Fence
Pupil Premium Ring Fence
Non Ring-Fenced
2014-15 Control Total at Supplementary Estimate 2011-12
-42,000
-
-41,552
334,631
20,000
-
-
314,631
334,631
-
-
-
-
-
-
380,000
42,000
12,600
-
-
-
414,800
53,916,525
8,128
3,000
2,500,000
51,405,397
53,916,525
-42,000
380,000
42,000
12,600
-
-
-
373,248
54,251,156
28,128
3,000
2,500,000
51,720,028
54,251,156
-
-
300,000
-
-
135,000
-
435,000
3,813,000
-
3,813,000
-
-
3,813,000
Annex C
AME
£000
472,092
472,092
472,092
-
-
-
-
-535
-477,000
-477,000
-5,443
-
-
-
-5,443
-5,443
-535
471,557
-
-
-
471,557
-
471,557
-
-
-
-
-
-
-
-
-
-
-
-
-
29
14/04/2020 12:31

DfE Supplementary Estimate Memorandum 2014-15
Changes to 2014-15 control totals since Spending Review
2010
Admin
£000
Programme
£000
2014-15
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
To DCMS from Basic Needs
Total Net Changes
Main Estimate 2012-13 of which:
Depreciation Ring Fence
Overseas Development Ring Fence
Pupil Premium Ring Fence
Non Ring-Fenced
2014-15 Control Total at Main Estimate 2012-13
-
-
-
-
334,631
-36,000
-
-
-36,000
53,880,525
20,000
-
-
314,631
334,631
6,586
3,000
2,500,000
51,370,939
53,880,525
-36,000
-
-
-36,000
54,215,156
-
-
-
-
3,813,000
-
-
-
-
-5,443
26,586
3,000
2,500,000
51,685,570
-
-
-
3,813,000
-
-
-
-5,443
54,215,156 3,813,000 -5,443
Changes in Supplementary 2012-13
Budget Cover Transfers
Transfer to CO National Citizens Service
Transfer to BIS Estates (CSR10 Error)
Transfer to OFSTED Thematic Surveys
Transfer to DFID for ODA
Transfer from BIS ISPs
Transfer to MOD Cadet Funding
Autumn Statement
Of which:
Resource Budget Savings
Basic Need
Schools Maintenance
-
-
-
-
-
-
-140,000
-2,800
-361
-3,000
0
-900
-
-
-
Budget Exchange
Total Net Changes
Supplementary Estimate 2012-13 of which:
Depreciation Ring Fence
Pupil Premium Ring Fence
Non Ring-Fenced
2014-15 Control Total at Supplementary Estimate 2012-13
-
-
334,631
20,000
0
314,631
334,631
-306,120
-
-
220,000
-233,181
53,647,344
6,586
2,500,000
51,140,758
53,647,344
Main Estimate 2013-14 Changes affecting 2014-15
Transfers
Transfer to CLG (EIG)
Transfer from CLG LACSEG
Transfer from DWP Early Intervention Foundation
Transfer to BIS Career Helpline
Academy Depreciation
Budget Reduction
AME
Provision Utilisation changes
Total Net Changes
Main Estimate 2013-14 of which:
Depreciation Ring Fence
Overseas Development Ring Fence
Pupil Premium Ring Fence
Non Ring-Fenced
2014-15 Control Total at Main Estimate 2013-14
-
-
-
-
-
-
-1,600,026
1,028,806
500
-4,695
1,025,000
-150,903
-140,000
-2,800
-361
-3,000
0
-900
-
-
-
-
7,500
-1,700
-
-
-
-
-
-
-306,120
-
-
-
592,900
157,000
-
-
-
220,000
-233,181
-
755,700
-
-
53,981,975 4,568,700 -5,443
26,586
2,500,000
51,455,389
-
-
4,568,700
-
-
-5,443
53,981,975 4,568,700 -5,443
-1,600,026
1,028,806
500
-4,695
-
-
-
-
1,025,000 -
-150,903 -
-
-
-
-
-
-
-
-
-
334,631
-
20,000
-
-
314,631
0
0
298,682
53,946,026
0
1,031,586
0
2,500,000
50,414,440
298,682
54,280,657
0
0
0
1,051,586
0
2,500,000
50,729,071
-
-
-
4,568,700
-
-
-
-
4,568,700
-
1,544
1,544
-
-
-
-
-3,899
334,631 53,946,026 54,280,657 4,568,700 -3,899
30
14/04/2020 12:31

DfE Supplementary Estimate Memorandum 2014-15
Changes to 2014-15 control totals since Spending Review
2010
Spending Review 2013 of which:
Depreciation Ring Fence
Overseas Development Ring Fence
Pupil Premium Ring Fence
Non Ring-Fenced
2014-15 Control Total at Spending Review
Admin
£000
334,631
-
20,000
-
-
314,631
334,631
Programme
£000
53,946,026
-
1,031,586
-
2,500,000
50,414,440
53,946,026
2014-15
Total RDEL
£000
54,280,657
-
1,051,586
-
2,500,000
50,729,071
54,280,657
Capital
£000
4,568,700
-
-
-
-
4,568,700
4,568,700
AME
£000
-3,899
-
-
-
-
-3,899
-3,899
Supplementary Estimate 2013-14 Changes
Transfers
Transfer to Welsh Assembly
Transfer to DCMS - Child Internet Safety
MOG Transfer to Cab Office - BYC
MOG Transfer to Cab Office - Kids Company
Transfer from BIS - 19+ in Sixth Forms
Transfer from BIS - 19+ in Sixth Forms
Transfer from DCLG - Early Int Foundation
BIS - ERASMUS
Spending Policy
Carbon Reduction commitment
-
-138
-
0
0
0
0
0
-90
-63,605
Autumn Statement
Of which:
Unprotected Resource back to Treasury
Free School Meals - Infant
Free School Meals - 6th Forms
Free School Meals - Kitchens
AME
Change in provision
Budget Exchange
-
-
-
-
-167,000
419,000
30,000
-
-
Total Net Changes
Supplementary Estimate 2013-14 of which:
Depreciation Ring Fence
Free School Meals Ring Fence
Pupil Premium Ring Fence
Non Ring-Fenced
2014-15 Control Total at Supplementary Estimate 2013-14
-
-
-228
314,403
20,000
-
-
314,403
334,403
-
-
215,509
50,629,949
1,031,586
449,000
2,500,000
50,180,949
54,161,535
-168
0
-300
-2,750
3,056
28
248
-3,000
-168
-138
-300
-2,750
3,056
28
248
-3,090
-
-
-
-
-
-
-
-
-63,605 -
-
-
-
-
-
-
-
-
-
-167,000
419,000
30,000
-
-
-
-
70,000
-
-
-
-
-
-
215,281
50,944,352
-
400,000
-460
-
470,000
5,038,700
-460
-4,359
1,051,586
449,000
2,500,000
50,495,352
-
70,000
-
4,968,700
-
-
-
-4,359
54,495,938 5,038,700 -4,359
Main Estimate 2014-15 Changes
Transfers
MOG CAFCASS to MoJ
MOG Contact to MoJ
MOG to Health - Can Parent
Transfer Adult Learning from BIS
MOG Erasmus to BIS
Transfer to HMT for Priority Schools Building Programme
Transfer to OFQUAL KS4 Reference Development
Transfer to OFQUAL A Levels GCSE Reform
MOG from OFSTED ORCD
Budget Measures
Apprenticeships
Pupil Premium
AME
AME Provisions
Total Net Changes
Main Estimate 2014-15 of which:
Depreciation Ring Fence
Free School Meals Ring Fence
Age Apprenticeships Grants for Employers
Pupil Premium Ring Fence
Non Ring-Fenced
Control Total at Main Estimate 2014-15
14/04/2020 12:31
-9,458
-
-
-
-
-
-
-
-
-108,900
-6,500
-1,141
56,760
-
-
-1,500
-2,000
623
-
-
19,434
-
-
-
305,511
56,000
-
-
-
-9,458
324,945
-
-
-6,658
54,154,877
1,031,586
449,000
56,000
2,500,000
50,118,291
54,154,877
-118,358
-6,500
-1,141
56,760
-
-
-1,500
-2,000
623
-
-
-
-
-
-8,550
-
-
-
-
-
-
-
-
-
-
-
-
56,000
-
-
-
-
-
-
-
-16,116
54,479,822
-
-
-8,550
5,030,150
-
-14,763
-14,763
-19,122
1,051,020
449,000
56,000
2,500,000
50,423,802
-
70,000
-
-
4,960,150
-
-
-
-
-19,122
54,479,822 5,030,150 -19,122

DfE Supplementary Estimate Memorandum 2014-15
Changes to 2014-15 control totals since Spending Review
2010 Admin
£000
Programme
£000
2014-15
Total RDEL
£000
Capital
£000
AME
£000
Supplementary Estimate 2014-15 Changes
Transfers
Transfer to Ofsted - Reform
Transfer to Ofsted - EY Inspections
Transfer to BIS - 19+ in Sixth Forms
Transfer to Ofqual - IT Reform
-
-
-
-
-14,550
-5,000
-28
-500
-14,550
-5,000
-28
-500
-
-
-
-
-
-
-
MOG to DH - Nursery Milk
MOG to DCMS - Booktrust project
MOG to DWP - Relationship Support
MOG to DWP - Relationship Support
MOG to MoJ - Contact Centres
MOG to MoJ - Contact Centres
Transfer from BIS - 19+ in Sixth Forms
Budget Reduction
Reclassification
RPA admin costs
Increase in Budget
Academies Depreciation
Salix loans
Autumn Statement VAT baseline adj
Cash rebate
AME
Budget Exchange
Total Net Changes
Supplementary Estimate 2014-15 of which:
Depreciation Ring Fence
Free School Meals Ring Fence
Age Apprenticeships Grants for Employers
Youth Contract
Pupil Premium Ring Fence
Non Ring-Fenced
Control Total at Supplementary Estimate 2014-15
-
-
-
-33
-1,423
-6,000
-7,500
-
-
-131
-
-130
-
3,170
-568,600
-1,423
-6,000
-7,500
-33
-
-
-
-
-130
-131
3,170
-
-
-
-
-
-
-
-
-
-
-568,600 -
-
-
-
-
750
-305
432
-
-750
-
201,800
-1,027
-
-
-
-
-
-
-
201,800
-1,027
-305
432
-
-
-
-
-
1,027
-
-
-
-
-
-
-
-
-
-
669,335
-2,700
-1,987
322,958
19,434
-
-
-
-
303,524
322,958
-
-400,538
53,754,339
1,233,386
449,000
56,000
42,000
2,542,000
49,431,953
53,754,339
-2,700
-402,525
54,077,297
-275,000
-273,973
4,756,177
-
669,335
650,213
1,252,820
449,000
56,000
42,000
2,542,000
49,735,477
-
70,000
-
-
-
4,686,177
73,000
-
-
-
-
577,213
54,077,297 4,756,177 650,213
14/04/2020 12:31
32

DfE Supplementary Estimate Memorandum 2014-15
Annex D
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
2008-09
£m
Outturn
2009-10
£m
Outturn
2010-11
£m
Outturn
2011-12
£m
Outturn
2012-13
£m
Outturn
2013-14
£m
Plans
2014-15
£m
Plans
2015-16
£m
Departmental Expenditure Limit
Resource
Administration
Total Resource
392.5
Programme 46,265.0
46,657.5
395.5
49,016.3
49,411.8
409.9
50,071.0
50,480.9
373.9
49,907.5
50,281.4
387.6
51,689.1
52,076.7
359.9
51,653.4
52,013.3
323.0
53,754.3
54,077.3
296.2
54,267.8
54,564.0
Capital
Total Capital
Programme 5,523.7
5,523.7
7,441.9
7,441.9
7,124.3
7,124.3
5,042.2
5,042.2
4,258.8
4,258.8
3,605.5
3,605.5
4,756.2
4,756.2
4,844.0
4,844.0
Annually Managed Expenditure
Resource
Programme
Total Resource
(11)
(11)
(30)
(30)
(51)
(51)
64
64
178
178
409
409
650
650
(15)
(15)
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33

DfE Supplementary Estimate Memorandum 2014-15
Annex E
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 a n 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 d epartment’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.
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