Agenda item

The Schools Forum received an update report relating to the Schools Budget 2023-24.

In summary the report provided the following information:

Schools

• The request to transfer 0.5% of Schools Block Dedicated Schools Grant (DSG) to High Needs had been rejected by the Secretary of State
• The growth fund budget had been set at £2.7m. Any underspend would be transferred into the DSG reserve as per the deficit recovery plan.
• The final education functions levy had been set at £54 per pupil
• School budgets had been set using the National Funding Formula (NFF)
• The minimum funding guarantee (MFG) had been set at 0.5%
• To ensure the NFF was affordable within the schools block DSG allocation, gains had been capped at 2.64%

Early Years

• Early Years funding base rates had been set at £4.52 per hour for 3 & 4 year olds and £5.67 per hour for 2 year olds
• An Early Years contingency had been set at 0.7% of the Early Years Block funding
• Any underspend on Early Years contingency would be returned to providers as a one-off payment in the following financial year (subject to affordability).

High needs

• Staffordshire’s High Needs Block (HNB) funding for 23/24 had increased by £12m compared to 2022-23
• Special School budgets had been set to provide for a Minimum Funding Guarantee of 0.5% (and no capping of gains)
• A further significant overspend was anticipated on the HNB in 2023-4

Central Provisions

The Forum were reminded that the Growth Funding was allocated to the local authority on a formula basis. The allocation for 2023-24 was £4.1m, and the funding had been used to fund growth above the census in the NFF. The remaining funding would be held centrally to meet commitments under the infant class size and exceptional growth fund policies. The amount retained centrally was £2.7m. Any underspend would be transferred to the DSG reserve as per the deficit recovery plan.

At the November Schools Forum meeting, maintained schools approved a levy per pupil for Education Functions of £56.47. Due to a change in the number on roll at maintained schools, the Forum was informed that the final levy for 2023-24 had been set at £54 per pupil.

Individual School Budgets

The Forum was informed that within the NFF, the deprivation factors had increased by 4.3% and all other factors had been increased by 2.4%. The supplementary grant paid separately in 2023-24 to help towards the costs of the Health and Social Care Levy and other costs had been rolled into the NFF by adding the grant funding rates to the relevant factor in the NFF. The minimum funding guarantee (MFG) had been set at 0.5%. To ensure the NFF remained affordable within the Schools Block DSG allocation, gains had been capped at 2.64%.

Mainstream schools would receive a separate Mainstream Schools Additional Grant (MSAG) as announced in the Autumn Statement. These payments would be made by the government in two instalments. Academies would receive the funding directly from the ESFA. Funding for maintained schools would be paid to the local authority and payments were expected to be made in April 23.

Early Years Funding

For 2023-24 SCC had been awarded the minimum national funding rate of £4.87 per hour for 3&4 year olds and a rate of £5.77 per hour for 2 year olds, this was a 26p and 20p rise respectively from 2022-23. The increase for both rates has been passed through to the base rate in full; making the 3&4 year old base rate £4.52 per child per hour and the 2 year old rate £5.67 per child per hour.

The Disability Access Fund (DAF) had increased by £28, from £800 to £828 per eligible child per hour to support access to the free entitlements.

The Early Years Pupil Premium had increased by 2p, from 60p to 62p per eligible child per hour.

The early years funding central expenditure approved by Schools Forum on 10 November 2022 allowed 96% of 3&4 year old funding to be provided directly to providers. This was 1% above the minimum limit of 95%.

A workshop took place with the Early Years Reference Group in January 23, as requested at the November Schools Forum meeting. This enabled officers to gain views of the Early Years sector on rate changes for 2023-24 and to inform decision making.

A concern was raised around school budgets as a whole. A question was asked as to whether any action was taking place centrally in relation to the major issues such as free school meals, universal free schools meals, energy costs, NJC pay awards and SEND costs. It was highlighted that the MSAG had been introduced in recognition of pressures caused by the increased costs and the cost of living crisis. It was also noted SCC supported the lobbying exercises that had taken place, most notably the F40 – fairer funding campaign. The Forum also heard that local Elected Members continued to lobby Government on behalf of Staffordshire education. Particularly in relation to the needs of education providers and also the local authorities needs with regards the High Needs Block.

It was highlighted that the Manor Hall Academy Trust had worked closely with the local MP and had written to the Secretary of State expressing concerns over funding; it was confirmed that a thorough answer had been received. It was agreed that a letter would be drafted on behalf of Schools Forum noting the specific issues being experienced across Staffordshire which would be sent on to the Secretary of State.

The WorthMore Group was highlighted as an organisation that had lobbied on behalf of schools in the past, and it was queried as to whether they would be able to support in this situation. The Vice-Chair offered to contact a colleague that was heavily involved in the Group and would provide an update to the Schools Forum after the meeting.

It was noted that the NFF cap on gains for 2023-24 Schools Budget was reported as 2.64%. It was asked what the cap on gains was for 2022-23 and it was confirmed that the gains had not been capped in that time-period.

Resolved: a. That the School Budgets update, be noted.

b. That a letter be drafted and sent to the Secretary of State on behalf of Schools Forum.

c. That the Vice-Chair contact the WorthMore Group and report back to the Schools Forum.

N.B. Following the meeting the Vice-Chair provided the response received from the WorthMore Group. The information provided included:

•     Drafted a possible manifesto platform for campaigning leading into the next election.

•     Trying to create a unified voice and a clear consistent message with a strong research base.

•     Proposal to roll out a campaign with support across all the main representative bodies and to utilise school leaders.

•     Action / plans to be implemented during the Summer Term.