Agenda item

Jenny introduced the report which gives Schools Forum an update on the July announcement about 2021/22 and High Needs Funding.

Jenny reminded the meeting that 2020/21 is the first of the three-year settlement from the DFE but although a 3-year settlement the detail has only been given of the annual settlement every year.  The DfE published in July the national funding formula tables for all schools across England. Jenny said it was important to note those are indicative allocations and are not the budgets the schools will receive in 2021/22.  Jenny added that the published figures are based on the October 2019 school census and the final settlement will be made on the October 2020 settlement.  Jenny explained that whilst the allocations will change for schools the amounts that they fix for the local authority will not change.  These tables do not include the premises funding that is allocated on the top of the national funding formula as this is done at local authority level.  Jenny reported that there has been no change to structure of the NFF but two technical changes have been implemented in terms of mainstreaming the funding for the teachers’ pay and pension grants in 2021/22 and to do that in terms of maintained schools that has been enacted from a further increase in the minimum per pupil funding level and thought needs to be given to what this means in terms of special schools because there is not an automatic route to feed that through the formula.  Secondly, the Income Deprivation Affecting Children Index (IDACI) data has been updated for 2019 which is a slight concern as there has been some turbulence in school budgets from those changes in the past but are currently awaiting the detailed data at school level from the DfE to assess this.  Jenny added that any impact from this will be mitigated by the minimum per pupil funding level.  The DfE has confirmed their intention to work towards a hard NFF and that is where schools’ allocations will be calculated by the DfE and not local authorities – a consultation is awaited on this and how the premises funding that is currently outside the NFF will work through this.

Overall, there is a 2% minimum increase per pupil and it is important to note that it is per pupil and may not necessarily feed its way through to 2% cash increase in schools budgets and the values within the formula factors have increased by 3% - the funding values are included in Appendix 1 that come with the NFF for the next financial year.

Jenny referred to the table in paragraph 8 sets out the information where all schools sit within the bands of that increase.  The concern is the number of schools sitting on that minimum per pupil increase of 2%.  Jenny stated this was an issue for those schools because had there been no guaranteed minimum increase of 2% per pupil 95 schools across Leicestershire would not have seen an increase in their budgets for 2021/22.  The DfE are mentioning a change in the way they recognise sparsity – this may come out in the consultation.  Jenny explained that the sparsity element of the formula is stated by the DfE as recognising the additional costs that small schools have – in Leicestershire however only 16 primaries and 1 secondary school have the sparsity element within their funding with most small rural schools not eligible for funding from this factor.

The minimum per pupil funding levels are set out in paragraph 10 and these rates are fixed nationally.  There remains no guarantee that funding coming into the local authority will be enough to fund the NFF.  As a result, the DfE maintain that local authorities can adjust the minimum funding guarantee to ensure that school funding sits within the envelope of funding allocated to the authority.

Discussion is already taking place with schools about what the settlement means for 2021/22 financial planning and training has been made available to governors.  Discussion with primary and secondaries headteachers will need to take place to convey this information.

In terms of high needs, funding has increased nationally by 10% and a minimum increase of 8% and a maximum increase of 12%.  Leicestershire receives the smallest increase.  Jenny explained that funding for Teachers’ Pay and Pension grants will transfer in terms of special schools; the settlement confirms there is protection on both place led and top-up funding. 

Whilst the increase in DSG makes the overall high needs position better it is not significant enough to reduce the deficit.  There is no automatic mechanism to feed the NFF increase in pay grants to special schools but will be discussing with special schools about the best way of doing this. 

There have been lots of conversations about whether the local authority will seek a transfer from the schools’ block to the high needs block; 0.5% can be moved with permission from the Schools Forum after consultation with schools with anything over that requiring Secretary of State permission.  Jenny added that there is no intention at this time to seek a transfer in 2021/22.  As discussed previously the schools that get the highest financial impact from any transfer are those schools with the highest rates of deprivation.  The local authority has written to the Schools Minster regarding a few issues around high needs funding and asked for an early indication as to whether the Secretary of State would allow a variation to the minimum per pupil funding levels which would allow a transfer to have a more equitable impact across all schools. .  Schools will be fully engaged within any discussions regarding a transfer and options to effect it in advance of 2022/23. 

In terms of the Central services block this has increased but the DfE are reducing the funding for the historic commitments within that settlement.  The most significant of those is the pension contributions the local authority are still making in respect of retired and redundant teachers which goes back a long way – this something that is being discussed with the DfE.  The other area for discussion is the £250,000 in terms of SIP funding. 

Graham Bett referred to paragraph 8 which was also raised at DNCC and said that it would be helpful to know within those bands which schools were within them that could be supplied to members.  Jenny looked at the analysis and grouped into a number of schools into individual schools as it stands at the minute.  Jenny agreed to circulate with the minutes.  In order to look at this in detail the data from the DfE was required and understanding the changes within schools. 

Graham referred to paragraph 20 and asked if the letter sent to the Schools Minister could be shared with Forum Members.  Jane Moore agreed to confirm whether this can be shared.

Schools Forum noted the contents of this report and highlighted its content to the groups represented by Members.