Agenda item

The report presented the 2024-25 Dedicated Schools’ Grant (DSG) settlement for Leicestershire and the 2024-25 School Budget. The report highlighted that 2024-25 will be the second year in a row in which the DfE has not funded Leicestershire sufficiently to allow the National Funding Formula to be fully delivered. The County Council’s Cabinet agreed on 9 February 2024 that capping gains on schools is the only viable option to close the affordability gap.

Simon Grindrod has asked if Leicestershire is unique in being underfunded or whether other LAs experience similar funding issues. Simon has also questioned whether there is anything the forum can do to push back against insufficient funding. Jenny Lawrence has reported that other LAs are facing similar affordability gaps and have needed to cap funding. Schools and LAs are not funded on the same census data, which means that funding gaps grow as the levels of additionalities increase.

2023-24 is the first year in which schools have accessed more growth funding than what was budgeted, and funding has been drawn down from the DSG reserve.

Recommendation: Schools Forum approves the retention of the budget to fund future school growth.

Approved:

16

Rejected:

0

Abstained:

0

The LA is funded from the schools’ block to perform its statutory duties for all schools, as presented in the report. The DfE has guaranteed that funding will be sufficient to meet historic premature retirement costs.

Recommendation: Schools Forum approve the retention of budgets to meet the prescribed statutory duties of the LA and to meet historic costs.

Approved:

15

Rejected:

0

Abstained:

1

The LA receives funding for central early years expenditure. Centrally retained funding must not exceed 5% of the Early Years DSG, meaning a 95% pass rate to providers which is met for 2024-25.

Jane Dawda has inquired whether the LA gains the difference in any funding lag as the Early Years DSG remains subject to change as indicated on Pg. 27 of the agenda. Jenny Lawrence has noted that the LA will not know the funding for 2025-26 until July 2025. There isn’t a direct match between the Early Years requirements and the funding. However, the LA is statutorily required to fund places for eligible children where parents require that provision. This may result in a surplus or a deficit which is carried by the LA until there is an opportunity to address it.

Recommendation: Schools Forum approve the centrally retained early years funding.

Approved:

16

Rejected:

0

Abstained:

0

The DfE will allow funding to be allocated within the funding formula for 2024-25 but requires all lease agreements by the end of April 2024 to continue that approval for 2025-26. Whilst the LA has been doing this for a long time, the DfE wants greater visibility and decision making from the Schools’ Forum.

Recommendation: Schools Forum note the DfE approval for use of the exceptional premises factor in respect of schools that incur rental costs for premises and / or sports facilities and the adjustments made in respect of age range changes.

Approved:

15

Rejected:

0

Abstained:

1

To reduce the affordability gap, Paragraph 31 to 38 of the report has set out viable options. All schools receive a minimum funding guarantee from the National Funding Formula (NFF), regardless of caps and scaling restrictions.  Whilst capping and scaling have been required all funding allocated to Leicestershire for the NFF has been provide to schools in the 2024-25 funding formula.

Additional funding cannot be utilised to close the affordability gap due to Leicestershire LA’s financial position. In addition, providing more funding to the NFF requires approval from Secretary of Education. The LA can reduce the values of the NFF in conjunction with capping and scaling, amending the Leicestershire Funding Formula to match the NFF, which requires consultation and approval by the County Council’s Cabinet. This is not possible given the timeline between the receipt funding allocations and the DfE dataset in which school budgets are constructed. These datasets are constructed in late December and the required submission of schools’ budgets in mid-January.

Recommendation: Schools Forum note the actions taken by the local authority in applying Capping and Scaling to the National Funding Formula for the purposes of affordability.

Approved:

13

Rejected:

2

Abstained:

1

The LA has informed the DfE of the number of commissioned places for state funded specialist institutions for 2024-25 academic year. Jenny Lawrence has noted that this prediction is difficult as actual numbers are not known until September of the relevant year. The return represents the minimum number of places to be commissioned. The LA can fund for additional places, if necessary, but the LA must fund for the estimated places at a minimum even if those places are not required. LA negotiates with institutions and in conjunction with SENA and providers to agree places to be commissioned (see Appendix E). Historically, the LA has always funded additional places over and above those on the commissioning return. LA is responsible for funding all institutions in Leicestershire, even if those places are being filled by children from other authorities. The numbers provided to the forum in the report are the LA’s minimum financial obligation.

Recommendation: Schools Forum notes the number and average cost of commissioned places for children and young people with High Needs.

The Early Year provider rates for 2024-25 have increased by £0.58 per hour for 3- and 4-year-olds and by £1.68 per hour for 2-year-olds. The rates, as delegated through cabinet and the lead member, will meet provider cost but 5% is retained by the Early Years’ service, meaning the rate given to the providers will always be less than calculated.

Recommendation: Schools Forum notes the Early Years Provider payment rates for 2024-25.

The Notional SEN budget is a sub-calculation of the NFF; as a result, it has increased in line with the NFF. The LA’s actions to meet Special Educational Needs (SEN) where the notional budget remains insufficient remains the same (as outlined in Paragraphs 72 to 74).

Recommendation: Schools Forum approve the action to be taken in respect of schools where the Special Educational Needs (SEN) notional budget is insufficient to meet the aggregated value of High Needs Funding Element 2.

Approved:

16

Rejected:

0

Abstained:

0

The LA has a mandatory requirement to remove funding from schools following the permanent exclusion of a student. The average per pupil funding is calculated with reference to the 2024-25 funding formula and is taken from the excluding school and given to the admitting school.

Recommendation: Schools Forum note the average per pupil funding to be taken into account for recoupment for excluded pupils and other purposes