School Funding Reform

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April 2014

SCHOOL FUNDING

BRIEFING

Funding Settlement

Devolved Nations

Reform In England

Arrangements and Changes for 2014-15

Proposals for 2015-16

High Needs, Pupil Premium and UIFSM

Post 16

The way ahead for NASUWT

School Funding Reform

SCHOOL FUNDING SETTLEMENT FOR ENGLAND FOR 2014/15

Details of the local authority DSG allocations

Continued to be based on the current

“spend-plus” methodology for

2014-15

Three spending blocks for each authority an early years block a schools block high needs block

Flat cash per pupil for 2014-15

No authority loses more than 2% of its budget in cash terms

Minimum Funding Guarantee that ensures that no school sees more than a 1.5% per pupil reduction in 2014-15 budgets

Excludes sixth form funding and Pupil Premium

April 2014

School Funding Reform

DEVOLVED NATIONS

April 2014

School Funding Reform

SCHOOL FUNDING FOR WALES

April 2014

Welsh Government pledge to increase school budgets by 1% above the rate of change of the overall Wales block grant.

Gross schools expenditure of

£2,518 million for 2013/14

Increase of 0.9% over the previous year

Gross schools expenditure per pupil average

£5,592

Increase of 1.3% or

£72.

£4,601 per pupil delegated to schools

£992 per pupil retained for centrally funded school services,

Significant variations between local authorities

Local authorities delegate between 78% and 85% to schools

Welsh Government expectation is for delegation to rise to 85%

Only Merthyr Tydfil local authority met this target

Pupil Deprivation Grant in 2013/2014 to

£36.78 million

School Funding Reform

SCHOOL FUNDING FOR WALES 2014-15

Welsh Local Government Settlement 2014-15

£4,260 billion

Down from

£4,413 billion

3.5% cut

Education and schools budgets now being set

Ensure 1% promise kept

Serious job loss

April 2014

School Funding Reform

SCHOOL FUNDING FOR SCOTLAND

Scottish Government

£30 billion budget

Local authorities allocated budget from Government

Provisionally agreed for a three year settlement at each

Spending Review

Provides more certainty and stability for local authorities

Total Revenue

£9,766 million 2013-14

£9,848 million 2014-15

£9,800 million 2015-16 *

*Provisional on setting of Council Tax

April 2014

School Funding Reform

SCHOOL FUNDING FOR SCOTLAND

Year on year cut led to reductions in school staffing and resources

Cutting of administrative and support staff

Restructing secondary provision

Removal of subject principle teachers replaced by faculty heads

Local authorities issuing HR1 forms

April 2014

School Funding Reform

SCHOOL FUNDING FOR SCOTLAND

£61 million increase in college funding

College budget

£522 million for 2014-15

£526 million for 2015-16

Prioritised investment

Early Years

£55m over two years to expand provision of free school meals

Increase in numbers learning, speaking and using Gaelic

School infrastructure

Schools for the future

£1.25 billion

67 new schools

April 2014

School Funding Reform

SCHOOL FUNDING FOR NORTHERN IRELAND

Aggregated Schools Budget (ASB) of £1.1billion

Common Funding Scheme (CFS)

Changes to the formula

Additional £15.8 million

Core principle

Break the link between social deprivation and educational outcome

Those schools with higher levels of social deprivation require more resources to tackle those challenges.

More money from the ASB going to schools with higher levels of social deprivation.

April 2014

School Funding Reform

April 2014

SCHOOL FUNDING FOR NORTHERN IRELAND 2014/15

13 March all grant-aided schools informed of budgets

Final decisions on changes to the CFS

Money directly delegated to schools to rise by £26.5 million

Two discrete funding streams within the formula one for primary and nursery one for post-primary.

Funding under the ‘Warnock’ factor

Onethird redirected to primary schools’ core budgets,

Balance to tackling disadvantage.

Transitional payments for schools whose budget is less than would have received.

Only 2.5% of schools will require a transitional payment in excess of £5,000.

School Funding Reform

SCHOOL FUNDING FOR NORTHERN IRELAND

£3 million investment in 20 new Nurture Units

£134 million School Enhancement Programme

51 school enhancement projects

Refurbishment or extension of school buildings

£11.5million investment in 150 new school buses

April 2014

School Funding Reform

ENGLAND FUNDING

ARRANGEMENTS

April 2014

School Funding Reform

SIMPLIFICATION OF ENGLAND FUNDING ARRANGEMENTS

Process in 2012 to reform the school funding system, so that it is:

– fairer

– more consistent

– transparent

Funding intended for education reaches schools and the pupils that need it most

Move towards National (Fair) Funding Formula

Consultation on ‘Fairer schools funding in 2015-16’

Additional £350m for schools block

April 2014

School Funding Reform

FUNDING ASSUMPTIONS

Delegated to schools in the first instance

More delegation to schools than in the past

Contingencies can be retained centrally but limited range of circumstances

Seven exceptions

April 2014

School Funding Reform

SCHOOLS FORUM ‘DE-DELEGATION’

Administration of free school meals eligibility;

Insurance;

Licenses or subscriptions;

Staff costs or supply cover (trade union facilities/civic duties long term supply);

Support for minority ethnic pupils or underachieving pupils;

Behaviour support services; and

Library and museum services.

April 2014

School Funding Reform

DE-DELEGATION OF FACILITY TIME

• 152 local authorities

• 122 responses to NASUWT survey

• 56 responded to de-delegation question

• 46 known to de-delegate (82.1%)

• Joint trade union group

• Letters to LAs, schools and academies

• Academies pot

• Many Academies not contributing

• Some LAs not allowing Academies to pay in

April 2014

School Funding Reform

PUPIL-LED FUNDING

All local authority areas in 2014-15

Minimum of 80% of delegated schools block funding is allocated through pupil-led factors.

– Age Weighted Pupil Unit (AWPU)

– Deprivation

– Prior attainment

– Looked after children (LAC), and

– English as an additional language (EAL).

(†

Mandatory factor)

April 2014

School Funding Reform

MANDATORY FACTORS

A single per pupil amount (for primary, KS3 and KS4)

Require all local authorities to set an AWPU rate:

– at least £2,000 for primary

– at least £3,000 for KS3 and KS4.

Deprivation*

(* No change from last year)

April 2014

School Funding Reform

OPTIONAL FACTORS

April 2014

Looked after children

SEN / prior attainment

English as an additional language* (EAL)

Pupil mobility

Post-16 provision*

Lump sum

Sparsity

(new)

Split sites*

Rates*

PFI*

London fringe*

(* No change from last year)

School Funding Reform

LOOKED AFTER CHILDREN

Pupils who were being looked after on 31st March 2013

Regardless of how long they had been looked after i.e. one day

In 2013-14 local authorities had a choice of whether to apply the factor to those who had been looked after for at least a day, at least six months or at least 12 months

.

April 2014

School Funding Reform

PRIOR ATTAINMENT AND PUPIL MOBILITY

Data from the new early years foundation stage profile used in deciding whether a pupil attracts prior attainment funding.

Pupils who did not achieve level 4 in mathematics attract prior attainment funding.

OR

English to

Mobility applies where more than 10% of pupils in a school are mobile.

For 2013-14 the factors applied where a school had any number of mobile pupils.

April 2014

School Funding Reform

LUMP SUM FUNDING

Local authorities to set a lump sum of up to

£175,000 and set a different lump sum for primary and secondary schools.

For 2013-14 the lump sum limit was

£200,000 and had to be the same for primary and secondary schools.

April 2014

School Funding Reform

SPARSITY

A fixed or variable amount may be applied to small schools

Average distance to pupils’ second nearest school is more than

– 2 miles (primary)

– 3 miles (secondary).

The maximum value for the sparsity factor is £100,000 per school

Either as a lump sum to all schools or a tapered amount related to school size

.

April 2014

School Funding Reform

MERGING

Where two or more schools merge in 2013-14, the local authority should pay the merged school a lump sum equal to 85% of the two lump sums that the schools would have received in 2014-15 if they had not merged

SCHOOLS WITH FALLING ROLLS

• Local authorities to retain a falling rolls fund for good or outstanding schools (including academies) if the schools’ capacity is likely to be needed within the next three years to meet rising pupil numbers

April 2014

School Funding Reform

OTHER CHANGES

Local authorities make initial determination of 2014-15 schools budget, and informing schools of budget shares moves from 15th

March to 28th February.

Local authorities put unspent money from the 2013-14 growth and infant class size funds into the 2014-15 individual schools budget, so that it is recycled to schools.

Local authorities to carry over to 2014-15 unspent de-delegated central expenditure to be used for the same purpose as it was used in 2013-14.

April 2014

School Funding Reform

MINIMUM FUNDING GUARANTEE

Protect per pupil funding for schools one year to the next against significant changes

Continue in 2014-15 to operate an MFG set at the same level as for

2013-14 - minus 1.5%

Continue to exclude from MFG calculation :

– lump sum;

– post-16 funding;

– allocations from the High Needs Block, including those for named pupils with SEN;

– allocations made through the early years single funding formula;

– rates.

April 2014

School Funding Reform

HIGH NEEDS FUNDING

April 2014

School Funding Reform

HIGH NEEDS FUNDING

Place-led funding

– Number and distribution of places in the system reflects need and provides financial stability for institutions

– Does not require a named individual for a place to be confirmed

– Based on the outcome of LA place reviews

Top-up funding

– LAs to use high needs budget to meet the individual needs

– Over and above the funding provided to institutions through place-led funding

April 2014

School Funding Reform

HIGH NEEDS FUNDING

Funding for SEN pupils in primary and secondary school budgets calculated with reference to a threshold of

£6,000.

Schools are expected to meet the costs of the additional support required by pupils with SEN up to that cost threshold

Special schools receive flat rate

£10,000 for all their places, including students aged 16-19

April 2014

School Funding Reform

PUPIL PREMIUM

AND UIFSM

April 2014

School Funding Reform

PUPIL PREMIUM 2013/14

.

Eligible for the pupil premium funding if registered for FSM at any point in the last 6 years (Ever 6 FSM).

Total of

£1.875 billion in 2013-14.

In December the DfE announced a or Ever6 FSM pupils.

‘top-up’ of £53 for primary FSM

April 2014

School Funding Reform

PUPIL PREMIUM 2014/15

Total pupil premium budget increase

 £1.875 billion to £2.5 billion

£1,300 for primary school pupil

More ambitious targets and clear expectations of what every child needs to achieve.

By 2016 primary schools at least 85% of their 11 year olds above new threshold

£935 for secondary pupils

£300 for service pupils

£1,900 for children who were looked-after for one day

April 2014

School Funding Reform

PUPIL PREMIUM

Head teachers decide how to use the pupil premium

They are held accountable for the decisions they make through:

 the performance tables which show the performance of disadvantaged pupils compared with their peers

 the Ofsted inspection framework, under which inspectors focus on the attainment of pupil groups, and in particular those who attract the pupil premium

 the reports for parents that schools have to publish online

April 2014

School Funding Reform

UNIVERSAL INFANT FREE SCHOOL MEALS (UIFSM)

Free school meals for every child in reception and years 1 and 2 of primary education in England from September 2014

£600m of additional funding made available

£150 million provided to local authorities and through the

Academies Capital Maintenance Fund to expand kitchen and dining facilities where needed.

£22.5m to small schools in 2014-15

April 2014

School Funding Reform

NATIONAL FAIR FUNDING

April 2014

School Funding Reform

CURRENT FUNDING MODEL

DfE / EFA

Local Authorities Non-recoupment Academies

Funding Formulas

Maintained schools

April 2014

Recoupment Academies

School Funding Reform

NATIONAL FAIR FUNDING FORMULA

Funding system unchanged since 2006-07

Funding since has built on historical pattern

Changes have occurred regarding deprivation, density, etc.

Not accounted for in funding model

2013-14 and 2014-15 reforms tighten rules

37 factors down to 13

Funding Local Authorities?

Funding schools direct from Whitehall?

April 2014

School Funding Reform

NATIONAL ‘FAIR’ FUNDING FORMULA

Consultation was expected in December 2013

Announcement was expected before Local Elections in May 2014

So that NFFF in place by April 2015

Before the General Election

Clegg and Gove representations to Osborne?

Avoid massive turbulence in transition

Treasury

– no money until next CSR

Consultation on ‘Fairer schools funding in 2015-16’

Rushed out on 13 March

Additional £350m for schools block

62 of 152 to benefit

April 2014

School Funding Reform

FAIRER SCHOOLS FUNDING IN 2015-

16’

Consultation to 30 April

“Step towards fairer funding”

Proposes minimum funding levels

Average amounts set by LAs that use these factors (?)

Five pupil characteristics

Age weighted pupil unit

Deprivation

Looked after children

Low attainment

English as additional language

Two school characteristics

Lump sum

Sparsity

Area Cost Adjustment

April 2014

School Funding Reform

FAIRER SCHOOLS FUNDING IN 2015-

16’

Share of £350m

0.68% of total schools budget

Summing amount

New funding amount for LA

Increase to this level if less

– 62 0f 152 LAs

Stays the same if more - 90 of 152 LAs

MFG -1.5% still applies

Impact on LAs not receiving more ?

Pay award

2.3% increase in employer pension contributions

General inflation pressures

April 2014

School Funding Reform

April 2014

FAIRER SCHOOLS FUNDING IN 2015-

16’

Top ten getting more

Local Authority

Surrey

Cambridgeshire

Bromley

Leicestershire

Devon

Norfolk

Buckinghamshire

Derbyshire

Brent

Warwickshire

Total

(Millions)

£24.8

£20.5

£19.1

£17.2

£16.2

£16.0

£15.2

£14.0

£13.2

£13.0

% increase

4.5%

7.0%

11.3%

5.1%

4.5%

3.7%

5.5%

3.4%

6.9%

4.6%

School Funding Reform

April 2014

FAIRER SCHOOLS FUNDING IN 2015-

16’

Bottom ten getting something

Local Authority

Oxfordshire

Plymouth

Walsall

Bedford

Milton Keynes

West Berkshire

Barnet

Hillingdon

Isle of Wight

Derby

Total

(Millions)

£0.5

£0.5

£0.5

£0.4

£0.3

£0.3

£0.2

£0.2

£0.2

£0.1

% increase

0.1%

0.4%

0.3%

0.4%

0.2%

0.3%

0.1%

0.1%

0.3%

0.0%

School Funding Reform

POST-16 FUNDING

April 2014

School Funding Reform

POST-16 FUNDING

Moved from funding per qualification to funding per learner.

• removed any incentive for providers to put students on bigger programmes simply to earn more funding

• given providers flexibility to determine programmes that meet the needs of students within framework of programmes of study

• significantly simplified the funding system and audit requirements

Removed funding linked to achievement while retaining funding linked to retention.

• removed any incentive for providers to put students on easier courses to protect their success rate

• freed providers to put students on courses more likely to stretch them and draw out their potential including those needing more maths and

English

April 2014

School Funding Reform

CHANGES IN 16-19 FUNDING METHODOLOGY

Funding no longer to the student for individual qualifications

But for a substantial programme of study.

Full time programmes have to be between 540 hours and 600 hours.

Part time learning is anything less than 540 hr

3 funding rates for part time study.

SCHOOLS VS COLLEGES

There is still a funding gap between what schools and FE colleges receive in cash terms for 16-19.

DFE set out a clear plan to close the gap

Take until about 2016 to harmonise funding

DFE is also making substantial year-on-year cuts to funding per student

Offering transitional protection to ensure schools or colleges don’t lose more than 3% per year

PARTICIPATION BUDGET 2014-15

Total planned budget £7.18 billion

National funding rate for 16-

17 year olds maintained at £4000

Rate for 18 year olds reduced to £3300

Impact of 18 y/o changes capped at 2% of programme funding

Disadvantage Block 2 rate remains at £480/£960 for all ages

Formula Protection Funding

Transferred to formula for those earning more

Fixed for those earning less

Last year of Transitional Protection

Mandatory Maths and English a condition of funding

Allocations issued by end of March

STUDENTS AGED 18

17.5% cut in funding per full-time student aged 18 at the start of the academic year 2014-15,

Funding per student aged 18 reduced from £4,000 to £3,300

Part of a strategy to achieve the savings required in the 2015-16 spending review period.

Estimated to affect 100,000 students and save £150 million,

Average cost of £600,000 per post-16 provider

Some will suffer much greater cuts in excess of £1 million.

Sixth-form colleges hit

Many have already suffered substantial funding cuts

Some face the loss of as much as a third of their funding over between 2010 and 2015.

NASUWT PRIORITIES

April 2014

School Funding Reform

NASUWT SCHOOLS FUNDING

Provide equality of opportunity for all learners and contribute to raising educational standards for all pupils and narrow the achievement gap;

Ensure the provision of, and access to, high-quality education and related support services for children and young people, including vulnerable children;

Provide equality of entitlement for all learners to be taught by qualified teachers and for the recruitment and retention of a highquality workforce in every school; and

Be responsive to changing needs and circumstances and support democratic participation in, and public accountability of, schools and education.

April 2014

School Funding Reform

QUESTIONS ?

April 2014

School Funding Reform

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