Agenda item

Jenny Lawrence introduced the report which sets out for Schools’ Forum’s information a number of financial issues including the basis for the 2019/20 School Funding Formula.

Jenny explained that the basis for the 2019/20 Dedicated Schools Grant (DSG) is unchanged by the Department for Education with the exception of a new methodology for funding local authorities for school growth.  Jenny gave an update within the Schools’ Block.  Jenny stated that schools will fully receive their rent where allowable and rates using funding formula agreed for 2018/19.  It was not possible to set out the level of growth funding to be received as not all the census information was available.  An update will be provided at the next meeting.  In terms of Early Years’ settlement this will remain the same which includes funding the Early Years’ Service.  The Central Block meets the local authority’s statutory responsibilities that remain for all schools.

Jenny highlighted the changes made by the DfE to the 2019/20 NFF funding rates.  The funding guarantees remain on a per pupil basis so schools with a falling number on roll will see a reduction in funding. 

DSG allocations for the schools, high needs and central schools’ service blocks will be updated by the DfE for the October 2018 census and revised allocations will be available in December.  Jenny added that there will be no changes to the Leicestershire school funding formula and no transfer from schools to the high needs block; Leicestershire is one of the few authorities not to do so for 2019/20.

Jenny reported that paragraphs 8-12 sets out the changes in growth funding.  The growth policy will need to be presented to Schools’ Forum in order to understand the new formula (paragraph 10) for Leicestershire, the build in the profile for new and expanding schools and future age range change protection.

Jenny outlined the teachers’ pay award rates set by the DfE for the teachers’ pay grant based upon the October 2017 school census.  Jenny added that the ESFA have indicated that the teachers’ pay grant will continue into 2020/21 but is likely to be absorbed into the funding formula.  David Thomas asked how this will tie in with the minimum increase per pupil.  Jenny stated that this was only guaranteed for 2018/19 and 2019/20 and in terms of 2020 there was no indication of school funding or any future funding protection levels; the only information available is that it would be a soft formula for 2020/21 with future funding levels dependent upon Comprehensive Spending Review, the date of which and the period it will cover are unknown.

In terms of support staff pay it has been necessary to address the issues of the national living wages impacting on the local government pay award and the implications for the Leicestershire County Council pay structure and therefore a new salary structure is being consulted on.  The implications will differ between schools and academies that adopt the Leicestershire pay structure but are estimated between 4% and 7% of support staff pay.  There were large concerns expressed at the meeting about the support staff pay scales which will in some cases require a restructure. 

Jenny stated that the Government announced £400m of additional funding in October which suggests will be a one off grant for 2018/19 and is a capital grant.  Details of this were awaited.

The local authority received a capital grant of £0.2m for maintained schools from the Healthy Pupils Fund which has been allocated across all schools.  Jenny stated that schools are asked if the money has been spent using the correct guidelines in December and January they will receive the money.

David Thomas asked for clarification regarding the underspend in the 2018/19 school growth budget as outlined in paragraph 11.  Jenny explained that £1.3m of growth money was held for 2018/19 with the approval of Schools’ Forum with the expectation of it being needed for future revenue costs.  This needs to be reassessed in terms of new housing developments, opening of Lubbesthorpe new school and extra funding for Fossebrook.  David asked how much of the £1.3m had been spent for this year.  An underspend of £1.2m against the growth budget is being reported for 2018/19.

Chris Parkinson asked if it is also allocated to that fund the high needs overspend.  Jenny stated that it is not allocated as moving forward it is a DSG balance.  For 2018/19 there will be an underspend on schools’ block and an overspend on high needs block.

Schools’ Forum noted the content of the report and to disseminate the information within it to represented groups.