To note the 2015/16 DSG and Growth Fund outturn, and 2016/17 DSG allocation. To discuss new arrangements for the payment of Growth Fund allocations in 2016/17.

The Forum received a report which provided an update on the Dedicated Schools Grant (DSG) and Growth Fund outturn for 2015/16 and 2016/17 DSG allocation.

From 2013/14, the DSG would be split into three notional blocks: Early Year, High Needs and Schools.

The Minimum Funding Guarantee (MFG) was set at negative 1.5% per pupil for 2015/16.

It was noted that the Chief Finance Officer (CFO) is no longer required to complete two statements annually instead the DfE have now requested one annual outturn statement, confirming that the DSG received by the Authority was fully deployed in support of the school budgets in accordance with the conditions of the School Regulations.  In addition, it will also include a Non Maintained Special School (NMSS) statement and Fraud cases reported in school statement.

DSG Outturn 2015/16

The Schools Block is based on a per pupil unit of funding of £4,289.09 multiplied by 35,866 pupils as reported on the October 2014 census.

The Early Years Block is based on a unit of funding of £3,979.80 multiplied by 2,652 full time equivalent number of pupils as reported on the January 2014 census.  In April 2016, the block was updated for 7/12ths of the January 2014 pupil numbers to cover the period September 2014 to March 2015.

The High Needs Block is a single block of high needs pupils/students age 0 – 24.  For 2015/16 the block is split into two parts, pre-16 and post-16 (ages 16 – 24).  The Forum noted that since August 2013, the post-16 funding has combined three previous budgets: SEN block grant, specialist placements funding and the cost of high needs student in Further Education (FE).

The distribution of the 2015/16 DSG based on the 51 Academy conversions at March 2016 was £192,114 (£89,800 went to Academies ISB).  Direct payments to Academies included Early Years = £755k and High Needs = £3.482k.  Paragraph 13 of the report provided a breakdown of the centrally retained DSG of £20.027m

A technical sub group has been set up to deal with High Needs Funding.  A technical sub group is being set up to deal with Early Years Funding.

There is a carry forward to 2016/17 of £3.109m.  The table in paragraph 12 of the report details the underspends.  The underspend has been used in part to increase the Schools’ individual budget for 2016/17 by £105k from School Contingency and a transfer to capital for Specialist Provisions of £784k from SEN Contingency.

Growth Fund Outturn 2015/16

The Growth Fund is for significant pre-16 growth in schools.  Funds are available to both maintained schools and academies.  Where a school has elected to expand they are not eligible for the Growth Fund.

The amount for 2015/16 was set at £2m and has been underspent by £241,830.  The Forum noted that any unspent from 2015/16 will be used for the same purpose in 2016/17.  An adjustment is due from the EFA of £18k in respect of a Growth Fund payment to Academies.  The adjustment will be included in the 2016/17 Growth Fund

DSG Budget Allocation 2016/17

The Forum noted that on 31 March 2016, the DfE announced the DSG for 2016/17 and that it would remain split into three notional blocks: school, high needs and early years.

The final DSG for 2016/17 is £195,576m.  This is based on:

·                Schools Block: £157.412m – which is based on the SBUF published in July 2015.  For CBC the SBUF is £4,294.39 an increase of £5.30 from 2015/16 to take into account the non-recoupment academy now incorporated into SBUF for 2016/17.  In addition, pupil numbers had increased by 777 to 36,643, based on October 2015 census.

·                High Needs Block: £25,795m – which is based on the 2015/16 carry forward plus an additional top-up of £47m distributed based on the 2-19 aged population in each Local Authority.

·                Early Years: £12,369m – which is based on the same rate as in 2015/16 £3,979.80 for three to four year olds.  This includes the early year pupil premium (eypp) £300 per year per eligible pupil equating to £171k and funding for disadvantaged two year olds at an hourly rate of £5.03. 

Paragraph 28 of the report provided a breakdown of the indicative DSG Revenue allocation of £195.576m for 2016/17.

Paragraph 31 provided a list of the single national licence managed by the Department for Education for all state-funded schools in England.  The Forum noted that four new licenses had been added.  It is estimated that this will cost be £245k.

Paragraph 33 provided a breakdown of the centrally retained DSG of £19.46m for 2016/17.

The Forum were asked to consider the proposal, within paragraph 37, for a new allocation process for the Growth Fund 2016/17.  The Forum agreed that “the proposal to make provisional payments to schools, based on a commitment to fund to an upper limit.  Actual costs and supporting evidence will be required and an adjustment will be made to the provisional allocation.  This will not apply to pupil led funding.”

The Forum noted that the first stage of the Schools and High Needs National Funding Consultation, which had been launched on 7 March 2016.  The Forum met on the 12 April 2016 and agreed a formal response to the consultation which was submitted to the DfE.  The second consultation will commence following the DfE’s consideration of all responses.

RESOLVED

1.     That the 2015/16 DSG Outturn be noted.

2.     That the 2015/16 Growth Fund Outturn be noted.

3.     That the update on the 2016/17 DSG allocations be noted.

4.     That the procedural changes to the Growth Fund allocations be agreed.

5.     That the update on the National Funding Consultation be noted.