To note the update on the DSG and School Funding Reform.

19.20 – 19.30

The Forum received and considered a report which provided an update on the Dedicated Schools Grant (DSG) and the School Funding Reform.

DSG

The estimated DSG for 2011/12 was £172.555m.  This was based on 37,044 (fte number of pupils as at 01/11)  multiplied by £4,568 (Guaranteed Unit of Funding (GUF)).  The LACSEG deductions attributable to 15 converted schools as at October 2011 was £440k.  It was expected that a further 21 schools would convert before the end of the financial year requiring a further £183k from Headroom.

School Funding Reform

The Department for Education (DfE) launched a consultation on 19 July 2011 which concluded on 11 October 2011.  The consultation considered the revision of the current methodology for allocating some £35bn of annual school revenue funding across 151 Local Authorities.  The consultation included 47 questions.  Central Bedfordshire held two sessions which were attended by Schools Forum members and Officers of the Council.  Both the Schools Forum and the Local Authority responded to the consultation.

The DfE was of the opinion that the list of factors could be reduced to provide greater consistency in funding across the country and limit the degree of divergence from the national formula.  The proposed list of factors were to be the following:-

·        Basic entitlement per pupil (currently Age-Weighted Pupil Units)

·        Funding for additional educational needs (e.g. deprivation, SEN, EAL)

·        Rates

·        Exceptional site factors (e.g. split site, PFI and rent)

·        Lump sums for schools

The Forum supported the proposed factors as Central Bedfordshire has between 22 and 28 factors depending on the School.  Officers were requested to model the reduction of formula factors for consideration at the second consultation meeting.  The models 2a for Lower Schools and 2 for Upper Schools were selected.  It was noted that the models did not include schools with a year Group higher than 6.  It was requested that a lump sum model be run for Middle Schools.  The Senior Finance Officer met with the Middle School Representatives and explained the models to them.

The Middle School Representatives thanked the Senior Finance Officer for the time and given to them to explain the process.  It had been incredibly helpful and they were very grateful.

The Forum considered three different model scenarios:-

·        Model 1 – factors removed and added to the AWPU – mainstreamed grants, teachers threshold and newly qualified teachers (NQT). 

·        Model 2 – factors removed and added to the AWPU – mainstreamed grants, teachers threshold, newly qualified teachers (NQT), formula funding lump sum, insurance lump sum and schools meals lump sum.

For Lower Schools Model 2 assumed no lump sum and Model 2a a lump sum factor of £95k.

For Middle Schools Model 2 assumes no lump sum, Model 2a a lump sum of £47,500 and Model 2b a lump sum of £40,000.  The lump sum for middle schools was included to take account of year groups 5 and 6.

·        Model 3 – factors removed and added to the AWPU – mainstreamed grants, teachers threshold, newly qualified teachers (NQT), formula funding lump sum, insurance lump sum, schools meals lump sum, addition summer intake funding (Lowers only), Admissions, Free School Meals, Infant Class Size (Lowers only), Personalisation, school meals and small school protection (Lowers & Middles).

For Lower Schools Model 3 assumed no lump sum and Model 2a a lump sum factor of £95k.

For  Middle Schools Model 3 assumed no lump sum, Model 3a a lump sum of £47,500 and Model 3b a lump sum of £40,000.  The lump sum for middle schools was included to take account of year groups 5 and 6.

The Forum considered Model 2, 2a and 2b to be the most viable options.

The Forum considered that Model 1 did not streamline the formula enough whilst Model 3 was considered to streamlined. 

Officers were asked to produce options for models 2, 2a and 2b with actual numbers to be considered via a consultation and a decision to be made at 23 January 2012 meeting.  A letter would be sent by the Chairman of the Schools Forum and the Deputy Chief Executive and Director of Children’s Services to all Headteachers and Governors explaining what is being proposed and why the other options have been eliminated.  In addition, they would be invited to attend a workshop on the School Funding Reform.

RESOLVED

that the update on the DSG and School Funding Reform be noted.