Agenda item

Purpose

 

The report presents the outcomes of the school funding formula working group commissioned by the Schools’ Forum to review the 2013/14 school funding formula and the approach to funding age range changes in academies and maintained schools.

 

Issues Raised

 

Jenny Lawrence introduced Dave Green from Woodbrook Vale High School, Andy Winter from Wreake Valley and Tina Hudson-Goater from Limehurst Academy who had been invited to the Schools’ Forum as representatives of the working group who worked with the Local Authority to review the 2013/14 school funding formula and the approach to funding age range changes in academies and maintained schools.

Jenny explained the working group looked at the following issues:-

 

-       Is there a rationale for a change?

-       Note there will be changes in 2015/16

-       Whether we should change the underlining data to deprivation

-       The introduction of the sparsity factor

 

Jenny said that the working party looked at the sparsity factor and discussed the impact of this and the movement of deprivation funding.  The proposal was that no changes are made to the formula for 2014/15 and this was supported by the working party.

 

On funding age range changes Jenny said that the Local Authority needed to respond to individual changes and have challenged the EFA considerably and the initial consultation had been around timelines.  The Local Authority was not aware until 8 July that the EFA could take money away from the Authority to expanding academies. 

 

Schools’ Forum have discussed this twice on the 20 June 2013 and 8 July 2013 and at that meeting it was agreed with the Local Authority that the implications of doing nothing were not acceptable.  Jenny summarised the proposal as outlined in the paper to be submitted to the EFA by 30 September in order to fund maintained schools and academies for the impact of age range changes.

 

Two additional papers were circulated ‘Leicestershire Age Range Changes – EFA Position Statement’ which had been received by the LA the previous day and ‘Financial Implications of Changes to School Age Range’ tabled by Andy Winter.  Andy Winter gave a verbal summary of the working group’s findings and concerns and stated that observations were not driven by their own interests.

 

Points being made by Schools’ Forum:

 

-       Tony Gelsthorpe asked for clarification regarding a request to change pupil numbers, is it in fact the Local Authority’s decision and not the Schools’ Forum.  Jenny confirmed it was a County Council decision but the information was brought to the Schools’ Forum as a major stakeholder.

-       Tony Gelsthorpe asked what happens as a result of age range change with a rising roll that is to be fully funded.  Is there sufficient headroom with regard to the DSG settlement to fund fully?  Jenny said that all DSG is not for schools.  Jenny added that the LA’s requirement all the schools block of DSG to be delegated and is the case.  The headroom is within the high needs block, because there were uncertainties around the changes to post 16 and SEN.  Funding not delegated to schools.  Now things are more certain the risks are reduced, this will transfer money to schools to fund this proposal.  It has a risk with growing concern regarding SEN. 

-       Is this a non-sustainable model?  Jenny commented that it will be sustainable and have a hierarchy of where it came from.  Analysis of formula our cap on gains on – very generous – schools will see a gain in the formula but not as quickly.  JL there is a possibility deprivation data changes in the formula result in changes to AWPU values

-       With rising rolls there would be schools with falling numbers – can you confirm that actually protection would be to the level of one year i.e. 80%.  David Heyes said that falling school numbers hit by age ranges in the first year for 2014/15 would be eligible for protection.

-       Would this be covered by any forward planning?  The way to balance of finding schools losing because of age range changes and would miss out on one year’s full of funding.  Jenny stated that the Local Authority has no role in additional money for academies secured for age range for 2013/14 – this was a discussion between the academies and EFA.  The proposed change to the Minimum Fund Guarantee(MFG)  is a separate issue to pupil numbers   David Heyes said that the MFG is a separate issue to pupil numbers and needed to ensure schools with Key Stage 4 pupils for the first time would look like a huge gainer –the working group’s proposal restores a balance. 

-       David Thomas commented that the EFA chose to fund age ranges and this needed to be a sustainable decision.  Gainers gained in full.  Should the gainers not gain in full?  EFA can step in and pull out money unless we make that stance.  How much do we need to support the losing schools by?  We are being dragged along by this.  Is that the general feeling?

-       Jenny Lawrence –  80% or 60% figure – for this first year of change – no time for schools to plan – schools may need higher level of protection – schools from now in their future budgets

-       Academies – the EFA - the EFA will say you will have only funded 80% - create a situation that is manageable. 

-       Sonia Singleton commented that it seems we are picking up the bill for changes being made.  Timing is 30 September for headteachers to debate this and give a full response.  Different areas are affected differently and difficult to know the number of schools affected.  Schools expand because they are popular and not because of age range.  This is not a decision we all feel comfortable with.

-       Jenny reiterated that the timeline was not known to the Local Authority until June.

-       John Bassford felt this was an unreasonable demand and is a complex situation.  Is it not reasonable to say to we do not agree.

-       Alex Green asked if we did not agree with this proposal what would the politicians do.  The politicians would make a decision.

-       Jenny said that one of the questions asked was what LA’s have been in similar situations.  There are authorities that have done what Leicestershire are doing.  Some authorities have moved from two tier to one tier.

 

Decisions

 

Tim Moralee concluded that the working group failed to reach a consensus view but asked for the Forum to vote on whether to support the recommendation.

 

Three agreed, two did not and 9 abstained.

 

As a result the Schools’ Forum asked Jenny to invite David McVean and Keith Howkins from the Education Funding Agency to meet with them on funding age range changes before 30 September.