Ian Hamilton - Manager Schools, High Needs and Early Years Team School Budget Update 2018/19 Ian Hamilton - Manager Schools, High Needs and Early Years Team

Introduction The main topic of the presentation is the introduction Schools National Funding Formula (NFF) from 2018-19 and the changes to Kent’s Local Funding Formula (LFF). In addition to this an update will be provided on other school funding matters for 2018-19

Guidance School Budgets were issued on Wednesday 28 February The following documents have been generated: E-bulletin 28 February Matt Dunkley CBE – providing an overview of the funding headlines for 2018-19 Delegated Funding Guidance – detailed guidance on the changes for 2018-19 (published on KELSI) Primary and Secondary School Funding Guidance 2018-19- detailed guidance (currently being updated and will be published on KELSI) Funding Templates (published on KELSI) Guidance how to complete Templates (published on KELSI) Kent’s Local Funding Formula rates 2018-19 and indicative rates for 2019-20 Please read

Update on Schools Funding for 2018-19 Background Changes to Kent’s Local Funding Formula (LFF) for 2018-19 has been as a result of the long awaited implementation of a Schools National Funding (NFF) Formula Education Skills Funding Agency (ESFA) held a Schools National Funding Consultation (NFF) in the Spring of 2017 They had over 26,000 responses to the Consultation and made some further changes On the 14 September the ESFA published a detailed response to the Consultation.

Headlines from the ESFA Consultation Response A Schools NFF will be introduced from April 2018 The Governments long term intention is to introduce a Hard NFF A Hard NFF is where all schools in the country, receive a uniform formula that consists of the same factors and funding rates and funding is passed direct from Government to each school. The actual date of implementation has not been announced. Further update on this will be provided in the next Government Spending Review (GSR) – Post April 2020.

Headlines from the ESFA Consultation Response - Continued 2018-19 and 2019-20 will be a Soft NFF. A Soft NFF funding formula has 2 Steps: Step 1 - is where funding (Schools Block Dedicated Schools Grant (DSG)) is passed from the Government to the Local Authority (LA) Step 2 - is where the LA allocate this funding using a Local Funding Formula (LFF). From 2018-19 Step 1 is calculated based on a Hard NFF – A uniform formula for all schools in the country- LA receives the aggregate amount of funding for all Schools in the LA.

Financially what does this mean for Kent Schools After seven years of flat cash (Pupil No. increase but no inflationary increase) Kent received a + 3.3% increase to its DSG in 2018-19 + 2.6 % increase to its DSG in 2019-20 A further + 1.5% increase in its DSG post 2019-20 – Arrangements to be confirmed as part of next GSR. The challenge that now faced Kent was how should the additional DSG be allocated Competing priorities between Local Priorities and replicating the Hard NFF

Process for determining Kent’s LFF for 2018-19 and 2019-20 All Schools Consultation held during period 30 October to 26 November. To encourage as much engagement as possible, a series of presentations were made at FIGs, KAG County Assembly, Edu Kent Expo and HT briefings, also information was circulated in a series of E-bulletins. The responses to the consultation were presented to the SFF at its meeting on the 1st December and a series of recommendations were made. Cabinet Member for Education makes final decision on distribution on LFF Schools responses to the consultation, SFF recommendations and Cabinet Member for Education decision all had the same consensus on how additional DSG should be distributed.

Useful Communication E-bulletin 20 September 2017   E-bulletin 3 November 2017 E-bulletin 7 November 2017 E-bulletin 14 December 2017  (Cabinet Member for Education proposed record of decision.) Draft Schools Funding Forum Minutes, Meeting 1 December 2017

Kent’s LFF 2018-19 and 2019-20 With the exceptions of: Minimum Funding Levels (MFL) Lump Sum Minimum Funding Guarantee (MFG) Ever 6 Free School Meals (E6FSM) Low Prior Attainment The LAs LFF for 2018-19 fully reflects the Governments NFF rates

What are the changes Kent has two Area Cost Adjustments (ACA) : London Fringe Schools (Dartford and Sevenoaks Districts) – 3.709% (3.64% +0.069%) Non-Fringe London Schools – 0.069% ACA is presented in two different ways: For London Fringe Schools it has a separate factor (Factor 9), calculation = 3.64% X total of factors 1 to 8 Non- London Fringe Schools- ACA is included in the factor rate, for example Lump Sum = £120,000. With ACA = £120,083 (£120,000 +£83) Rates will be different from the consultation as 0.069% presented as a separate factor (factor 9). ESFA guidance determines we treat them differently

Minimum Funding Level (MFL) 2018-19 2019-20 NFF rate LFF rate % of NFF rates Primary £3,300 £3,200 97% £3,500 £3,400 Secondary £4,600 £4,500 98% £4,800 £4,700 Funding attributed to the ACA is included in MFL rate and not paid in addition. MFL calculation = 1. (Total Budget calculated using LFF factors less Rates) divided by (number of pupils on roll as at October census) 2. The amount in 1. is then topped up to the MFL rate.

Minimum Funding Guarantee (MFG) and Lump Sum NFF provided protection at 0.5%, all schools would receive an increase of at least 0.5% for Years 2018-19 and 2019-20. 1% over the two years. Kent’s MFG has been set at minus 1.5% for 2018-19 and 2019-20 Lump Sum NFF Lump Sum £110, 000 Kent has retained its current lump of £120,000 (£120,083 including ACA 0.069%) for 2018-19 and 2019-20

Ever 6 FSMs and Low Prior Attainment 2018-19 2019-20 NFF rate LFF rate % of NFF rates % of NFF rates Primary £540 £232 43% £324 60% Secondary £785 £338 £471 Low Prior Attainment 2018-19 2019-20 NFF rate LFF rate % of NFF rates % of NFF rates Primary £1,050 £641 61% £733 70% Secondary £1,550 £1,043 67% £1,193 77%

Sparsity Kent has introduced the Sparsity Factor into its LFF based on NFF Sparsity rates of up to £25,000 (£25,017 including ACA) for a Primary School and £65,000 (£65,044 including ACA) for a Secondary School. Schools that are eligible for sparsity funding must meet two criteria: they are located in areas where pupils would have to travel a significant distance to an alternative should the school close they are small schools If a school meets both criteria’s then they will be eligible for Sparsity funding up to the maximum threshold of the phase School phase Maximum average number of pupils per year group Minimum average distance to second nearest compatible school Primary 21.4 2 miles Secondary 120 3 miles All-through 62.5

Private Finance Initiative (PFI) and Looked After Children (LAC) PFI – additional funding allocated due to increased costs LAC factor has been removed from LFF, in line with NFF and protected in MFG Baseline Funding transferred into Children in Care Pupil Premium – Increase £400. £1,900 to £2,300

Transfer to High Needs Block 0.5% (£4.4m) of the Schools Block was transferred to the High Block to help meet increase in number of High Need Pupils placed in: Special Schools Specialist Resource Provision (SRP) Independent FE Colleges Independent Specialist Providers Mainstream Schools

Growth Funding Additional £2m transferred to Growth Fund to meet pressure caused by the continued expansion of schools as a result of the increase to population. Now seeing Primary increase in pupil numbers flow into Secondary Schools

Pupil Growth Pupil Growth Funding Must be a Basic Need school – The DfE define Basic Need as new pupil places which are requested by the LA because there are insufficient places available for pupils in the area. Area Education Officers (AEOs) determine if schools meet eligibility for the DfE basic need criteria. Two strands – Reorganisation Funding and Rising Roll (RR). If you are entitled to Reorganisation Funding you will receive an email during the period 5 to 16 March confirming entitlement and amount. If you are entitled to RR it will be shown on the growth tab on the template.

Change to Specialist Resource Provision (SRP) Funding No Change in overall funding, just how it is allocated through different budgets. In 2017-18 all SRP funding was allocated through a separate budget In 2017-18 – SRP pupils were not included on a schools roll, therefore no funding was received through the Schools Formula Budget. From 2018-19 they will be recorded on schools roll and will be funded through a schools Formula Budget. In 2017-18 the Schools Formula element of funding was included directly in the SRP budget. From 2018-19 this element will be removed and only Elements 2 and 3 will be included in an SRP Budget.

Pupil Premium (PP) Same rates as 2018-19 except Children in Care PP and Post Looked After Children : Ever 6 Free School meal (E6FSM) – Primary £1,320 and Secondary £935 Ever 6 Service Children (E6SC) - £300 Post Looked After Children (PLAC) - £2,300 Based on January count, indicative budgets for E6FSM and E6SC (April to June) - adjustment in July

Pupil Premium - continued Children In Care PP goes direct The Virtual Schools Kent (VSK) and not school, will be increasing by £400, from £1,900 to £2,300. An allocation of £900 per eligible pupil will be paid to schools in 3 instalments of £300 each. In addition to this, schools can bid for additional amounts based on evidenced levels of need Remember- can only get a maximum of E6SC + one of the following CiC, PLAC and E6FSM Remember- adjustment in January - where a E6FSM is subsequently identified as CiC

Universal Infant Free School Meals (UIFSM) Academic year 2017-18 is the fourth year of UIFSMs. The Education Funding Agency (EFA) has confirmed that this grant will continue until the end of this Parliament; however currently no funding guidance has been issued for the academic year 2018-19. On the bases that the underlying methodology for calculating the grant will continue, we are advising schools to base future funding forecasts on the underlying calculation for 2017-18 and adjusting for change in eligible pupil numbers. Devolved Capital Formula (DCF) Indicative budgets for 2018-19 that are based on pupil numbers collected in the January 2017 census and the current years funding rates.  Final allocations will be confirmed by The Education and Skills Funding Agency (ESFA) in March although we are not expecting any material changes. 

Year 7 Catch UP 2017-18 2017-18 allocation now on KELSI, paid in full March advance Conditions of grant published on KELSI Primary PE and Sport Premium Grant Schools received their funding for the period September 2017 to March 2018 in November 2017. The final payment for the period April 2018 to August 2018 will be made to schools in May 2018 Academic year 2017-18 saw an additional increase in funding, rates were doubled. Schools should plan for the same funding rates in 2018-19. Final ESFA confirmation likely to be received in October 2017

Three Year Plans- forecasting income Year 1 is your 2018-19 budget Year 2 – Indicative LFF rates have been provided for 2019-20 Year 3 – Next GSR, no guidance provided by ESFA. Therefore setting MFG at 0% based on 2019-20 budgets, schools have ability to flex MFG rate based on local discretion.

Mainstream High Needs Funding Mainstream High Needs Funding Review commissioned Summer 2017, due to continued unstainable increase in High Need Pupil (HNP) numbers. August 2016 – 2,175 –HNP August 2017- 2,770 – HNP Initial action taken – reduce rates for New HNPs from September 2017 by 30% and pay from December.

Mainstream High Needs Funding continued Outcome of review: Needs Specific Top Up rates introduced from April 2018- All schools should have been notified of their new rates. Change to application process for High Need funding application. Improved Gate Keeping, more consistent.

Early Years 3 & 4 Year Old Free Entitlement Same level of Funding received from the Government in 2018-19 compared to 2017-18 – no inflation increase Through efficiency generated from 30 hours we have be able to add £0.04 to the base rate, increasing it from £3.96 to £4.00 from April. Change to template as 2018-19 is going to be 39 week year instead of 38 week

Any Questions