To note the update on the DSG arrangements and Funding Reform Consultation.

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

Dedicated Schools Grant (DSG)

The final DSG for 2012/13 is £174.210m.  This is based on 37.333 (fte number of pupils at January 2012) multiplied by £4,658 (Guaranteed Unit of Funding (GUF).  The figure was based on 30 schools converting to Academy status as at May 2012 and $465k LACSEG transfer.

The Forum noted that a further 22 schools are expected to convert to Academy status by the end of the financial year.

The unallocated DSG from 2011/12 of £26,878 had been transferred to the School Contingency for redistribution in 2012/13.

School Budgets 2012/13

The Forum noted that the School budgets were distributed during the week ending 9 March 2012 ahead of the 19 March 2012 deadline. 

The Forum were reminded that a link was on the Schools portal which detailed the calculation of the pupil premium using Ever6.

Consultation on School Funding Reform

The DfE launched an eight-week consultation ‘Next steps towards a fairer system’ which ran between 26 March and 21 May 2012.  Full details could be found on the DfE website: http://www.education.gov.uk/.  

No additional funding would be available prior to the CSR in 2015.  The 2013/14 settlement would be based on 2012/13.

The DSG would be split into three notional un-ringfenced blocks: Schools, Early Years and High Needs.  The School Block would be delegated to schools with the following three exceptions:-

• Maintained schools agreed a service should be provided centrally
• Historic commitment
• Statutory function

Funding would be based on the October census except for Early Years which will be based on the January count.

School Blocks

The Forum noted that there were currently 37 factors in the formula and that this would be reducing to 10 different factors with effect from April 2013 as follows:-

• Basic per-pupil entitlement – AWPU (single unit rate for Primary/Secondary, although the department are asking should a separate KS3 and KS4 be permitted)
• Deprivation (based on FSM and/or IDACI – a single rate or a form of banding)
• Looked After Children
• Low cost, high incidence SEN (prescribing Early Years Foundation Stage Profile for Primary and KS2 data for Secondary
• English as an additional language (for only three years after entry into compulsory school system)
• Lump Sum (requesting a response on what the upper limit should be in the range £100 - £150k with the same lump sum applicable to Primary/Secondary)
• Split site (to encourage schools who adopt efficient solutions, such as merging and federating)
• Rates
• PFI contracts
• Only applicable to five LA’s London fringe area

The formula to be submitted with EFA by October 2012.  The response to the consultation had been attached to the agenda.

The Technical Sub Group (minute no. CBSF/12/53 refers) would be considering the funding options.

The DfE confirmed that it wanted to move to a National consistency for basic entitlement and had suggested a fixed range for the Primary and Secondary funding ratio (1 for Primary and 1.25 for Secondary).  Restrictions would be considered from 2014/15 onwards.

The Minimum Funding Guarantee (MFG) would be simplified and continue at negative 1.5% for both 2013/14 and 2014/15.  Schools Forums will need to determine as part of their formula modelling, whether and how to limit gains.

The Forum noted that Special Schools would no longer have a delegated budget on the same basis as Primary and Secondary. 

The Early Years Block would continue to be estimated on January counts but the funding floor would be phased out entirely by 2014/15 whilst 2013/14 is a transition year reducing the protection to 85%.

Modelling

The Forum noted that a sub group meeting had been held on 26 April 2012 to discuss the consultation response.

The Technical sub group will meet to determine the new formula and will report to early September meeting to update the Forum.

RESOLVED

1.            that the deployment of the 2012/13 Dedicated Schools Grant (DSG) be noted

2.            that the update on the School Funding Reform Consultation be noted

3.            that the creation of a Technical Funding sub group to work with LA officers following the outcome of the Consultation be agreed.