1. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 1 School Funding- Presentation to the Funding Policy Unit in London- 5 th June 2013 East Riding of Yorkshire Council Christine Atkinson christine.atkinson@eastriding.gov.uk

2. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 2 Best Outcomes for our Pupils

3. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 3 Topics About the East Riding The funding at LA level How ER tackled the school funding reform changes Issues for ER schools What the ER would like

4. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 4 The East Riding 125 primary (2 academy) 23,743 pupils 18 secondary (5 academy) 18,433 pupils 3 special 4 nursery 2 PRUs Largest unitary authority spread over 950 square miles- also coastal Six PFI schools 4 sec and 2 prim all maintained- £12m deficit

5. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 5 Finance Team-ERYC Central team- 6 – non schools, capital, budget planning, closedown Schools Team Schools Management Accountant 2 senior accountants 4 full time assistants/ 3 term-time only (mainly SLA income) (all school funding work/ 2 visits a yr to help schools with budget preparation/ additional peri visits/ school fund audits/ payments to PVI’s/ bank account schools/ academy conversion/ ledger maintainance/ SFVS training/ GB training and attendance at meetings/ payments to other LA schools HN pupils/ tools to assist with monitoring, budget scenarios/ analysis work/ telephone helpline/ Heads and finance staff training

6. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 6 Finance SLA’s with schools ServiceAmount No of Schools Total SLA -standard£610105£64,050 SLA- enhanced£91040£36,400 Additional 10 days £1,5155£7,575 Additional 5 days £85011£9,350 Ad hoc peri£180 a day113 days£20,340 GB training£1806£1,080 School fund audit £15019£2,850 Total£141,645

7. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 7 Pressures on the ERY Council In 2013-14 the LA has to find gross savings of £25m or 4.2%. Children’s Services savings £5m These have been found partly from: 1)The removal of support to schools £0.445m 2)School Improvement Service £1.5m (now traded service) 3)Schools music service £0.181m 4)Early years £0.932m 5) Rest, children services transformation

8. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 8 Issues/ Pressures on schools for 2013-14 Funding remained the same but new funding formula redistributed it amongst schools ‘winners/losers’ EFA funding for 6 th forms reduced Pay awards/ inflation / pension contribution for support staff increased Falling pupil numbers- especially in secondary schools Removal of support from Council £0.445m PFI additional pressure £0.647m Additional costs for school improvement service etc Funding for high needs pupils changed Larger class sizes

9. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 9 Pupil numbers in mainstream schools YearPrimarySecondaryTotal 2009-1023,37019,65043,020 2010-1123,32019,56742,887 2011-1223,20419,22242,426 2012-1323,63118,78342,414 2013-1423,74318,43342,176 2014-1523,73917,98941,728 2015-1623,98417,55141,535 2016-1723,94717,22041,167

10. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 10 Size of school -Primary No of Pupils excl nursery No of Schools 0-5413 55-7915 80-14931 150-19917 200-29923 300-39915 400+ (largest 494)11 Total125

11. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 11 Size of school- secondary No of Pupils (excl 6 th form)No of Schools 478-7496 750-9994 1000-14995 1500+ (largest 1605)3 Total18

12. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 12 The Funding at LA level

13. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 13 Where is the ERYC in the DSG rankings In 2012-13 a GUF of £4,613.11 placed us as the 8 th worst funded LA out of 151. (ranges Leicestershire £4,428.70 to City of London £9,372.60) In 2013-14 the per pupil units of funding are: Schools block £4,257.73 ‘34 worst’ Early years block £4,184.41 ‘91 worst’ High needs block £423.51 ‘the worst’ Overall £4,984 per schools block pupil numbers = 3 rd worst

14. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 14 GUF In 2010-11 the Government added the GUF (£4,014.55 per pupil) and the standard fund grants (£598.56 per pupil) together to give a GUF of £4,613.11. The GUF has remained at this level for 2011- 12 and 2012-13.

15. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 15 F40 group F40 represents the 40 lowest funded LAs in the country F40 letter to Michael Gove (MG)10th April 2012 requesting an uplift in funding to the level of the 40 th worst funded LA (option to scale down to 1/3)- would have meant an additional £2.8m to us or £66.38 per pupil. (£99m overall) MG rejected proposal on 5 th July 2012 F40 wrote again 16th July 2012 MG rejected again 24 th July 2012

16. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 16 School Funding Reform

17. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 17 Funding Reform Timescales Announcement March 2012 Changes announced following consultation- 28 June 2012 Toolkit final version 24 July 2012 Final data end of July 2012 Required Council approval 31 October 2012

18. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 18 How we tackled the funding changes Used the modelling toolkit-attended meeting- final version 24 th July, final data a week later Established principles early on in the process (slide 20) Reports to FASG, School Forum and The Cabinet Two School Forum (prim & sec) headteachers saw the toolkit in action Letter out to schools July 2012 Presentations to ALL schools (Head, finance officer and governor) in September 2012- gave each school their 2012-13 budget based on new formula.

19. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 19 BASIC PER PUPIL ENTITLEMENT DEPRIVATION LUMP SUM LOW COST HIGH INCIDENCE SEN Personalised Learning  Attainment Element  IMD Eleme nt  P u p i l L e d Social Deprivation  IMD  LAC + at risk One to One Tuition School Development Grant (SDG)  Attainment  Deprivation  Pupil Element  ICT (Pupil Led)  Enterprise Learning  ICT (Block)  SDG (Block) Extended Schools (me too) Schools Standard Grant (SSG)  Pupil Led  Block Sum Schools Standard Grant Personalisation  Attainment  Free meals  Pupil Led Targeted Primary/Secondary Strategy Learning Support Unit Practical Learning Specialist Schools (Pupil Led) Statements Formula  IMD  ATTAI NMENT SEN Support Services  IMD  ATTAINMENT SEN without Statements  IMD  ATTAINM ENT LAC EAL The 37 funding factors currently used to allocate funding to East Riding Schools will reduce. Out of the 12 allowable factors, 3 are not applicable to the East Riding. In addition to the 6 factors above, there will continue to be factors for rates, split site and PFI funding. Early Years and Statements are excluded from the numbers quoted as these are funded separately under the new arrangements from April 2013. Infant class size funding, energy performance Small school support, incremental drift, teacher mobility, High pupil turnover, grounds maintenance, swimming, EAL- funding during the year Travellers School and early admissions block School Meals  Block  FSM take up Chart- old and new factors

20. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 20 Principles used in modelling The amount allocated to the primary and secondary phases to remain the same. To minimise turbulence. Distribute same through deprivation Fund pupils not ‘schools’

21. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 21 New Formula Simple and transparent – achieved Does it allocate funding where we see the need– no Why- Inflexible, each school is different – buildings, staff costs, number of pupils in a class. Does not give pupils in the same size school with similar pupil characteristics the same chances eg. new school vs old school, inexperienced vs experienced teachers

22. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 22 ERYC Pro-forma FactorAmount% Per pupil£138.301m78.25% Deprivation£9.852m5.57% LAC£0.244m0.14% LCHI SEN£4.725m2.67% EAL£0.212m0.12% Lump sum£18.590m10.52% Split sites£0.455m0.26% Rates£3.335m1.89% PFI£1.037m0.59%

23. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 23 Comparing one LA to another Leeds v East Riding (example only) Leeds £279.95 per pupil more schools block Run ER values through Leeds unit values – Leeds needs £2m more- how can this be? Not strictly true PFI Leeds £7m ER £1m Retained growth Leeds £1.8m ER £0.172m Also :Centrally retained Leeds £8m ER £2.5m Therefore big health warning when comparing proforma’s

24. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 24 Values – lump sums Old formula, through the school block and early years block we gave out £16.12m plus school meals block £0.75m and SSG block £1.716m = £18.586m. Block varied according to size and phase- flexible New 143 schools * £130,000 = £18.590m (125 prim and 18 sec) Breakeven 190 pupil primary and 1024 pupil secondary

25. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 25 Range of ‘Winners’ and ‘Losers’ - Primary Pre MFG/CapPost MFG/Cap Pupil NumbersLargest Loss £ Largest Gain £ Largest Loss £ Largest Gain £ Under 80 (29) -67k+15k-4k+3k 80-149 (29) -70k+30k-9k+5k 150-199 (17) -62k+60k-11k+7k 200-299 (24) -61k+76k-16k+10k 300-399 (13) -54k+89k-22k+14k 400+ (13) -118k+101k-26k+18k

26. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 26 Range of ‘Winners’ and ‘Losers’ - Secondary Pre MFG/CapPost MFG/Cap Pupil Numbers Largest Loss £ Largest Gain £ Largest Loss £ Largest Gain £ 500-749 (4) -93kN/A-46kN/A 750-999 (6) -248kN/A-66kN/A 1000-1500 (5) -70k+85k-70k+73k 1500+ (3) N/A+327kN/A+88k

27. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 27 MFG and Capping New Formula– 57 Primary schools on MFG £1.568m 6 Secondary schools on MFG £0.333m 48 Primary schools capped £1.318m 6 Secondary schools capped £0.583m Funded per the formula 20 primary schools 6 secondary schools

28. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 28 Why ‘winner or loser’ Historic grant funding Formula factors that can no longer be used ie ICSF, energy, incremental drift, small school support etc Different pupil numbers used Different data set Only one lump sum

29. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 29 Low funding Pockets of deprivation Large rural LA with a wide range of school sizes- large number of schools compared to pupils Condition of buildings Issues for ER schools

30. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 30 Pupil Premium Worst21st133rd90th10th ERLeedsHullLeicestershire 2012-13£4.912m£19.447m£8.742m£10.261m Pupils42,17695,07231,80784,569 Average pp£116.48£204.56£274.86£103.19 2013-14£7.096m£28.094m£12.629m£12.607m 2014-15£9.462m£37.459m£16.839m£16.809m Average pp£224.35£394.01£529.41£198.76

31. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 31 Educating Hull pupils Out of a total number of pupils including nursery 46882, 3046 are from Hull 6.5% ER schools block £4,257.73 Hull £4,713.02 Diff £455.29 * 3046 = £1.387m Also if from deprived postcodes takes money out of overall ER pot to fund deprivation

32. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 32 Pupil premium v schools block If pupil premium funding was in the formula and allocated to LAs on pupil numbers the ERYC would be better off by:- Total pupil nos 6,677,261- ER 42,176 0.6316% Total PP 2012-13 £1,181bn ER £4.9m 0.415% If pp funding had been given out on pupil nos ER would get £7.459m an extra £2.559m in 2012- 13 (13-14 £3.695m 14-15 £4.927m)

33. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 33 Pockets of Deprivation Size of primaryRangeNo on FSM6 0-54£1800- £171003-19 (5%-34% 55-79£900-£225001-25 (2%-35%) 80-149£900- £324001-36 (1%-37%) 150-199£3600-£909004-101 (2%-63%) 200-299£4500-£1053005-117 (2%-40%) 300-399£9000-£18720010-208 (3%-53%) 400+£13500-£11070015-123 (3%-25%)

34. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 34 Please Lets not forget about ensuring there is enough funding to educate those pupils that are not from deprived backgrounds

35. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 35 Food for thought How fast can schools react to change and unpredictability and forward plan? Budgets in the ER are tight already:- funding is low- no increase for 3 years increase in costs year on year (combined with reduced rolls) what will happen to MFG/ pupil premium/ new builds? How can this not lead to: 1) increase class sizes ? 2) less investment in buildings ? 3) lack of resources ? How can this lead to increased standards?

36. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 36 Old formula – not perfect Government priorities SDG- ie Sutton v Rawcliffe (see handout) We were going to launch our own consultation with schools to move away from the old SF grants – would have created winners and losers MFG protects these imperfections

37. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 37 Lump sums- impact on a rural LA LANo of Pupils No of schools Lump% distFreed up ERYC41,176143£130k10.52% Redbridge 42,18570 £123,343 4.56%£9.0m Barnet42,287108£122k6.39%£4.27m Leicester 42,70098£100k5.00%£4.5m Bolton40,932111£150k9.11%£4.8m

38. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 38 Sparsity factor at LA level The allocation of lump sums across different LAs with similar pupils numbers, demonstrates how costly it is to a LA to have a higher proportion of schools compared to pupil numbers. The ERYC would like this to be recognised at national level This is not a local issue as a flexible lump sum would address this and we are not in favour of a 13 th factor for sparsity Funding is spread more thinly over other factors as a higher % of the overall funding goes on the lump sum.

39. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 39 Change of pupil count date January 2012, October 2013 - budgets out sooner – great - mfg calc used October 11 pupil numbers for 2012- 13 budgets- challenged several times - lack of consistency-1) pupil premium still based on January – still no final 2013-14 allocations (could use same as dataset) 2) sports grant – based on January pupil numbers – still no final allocations

40. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 40 School closures- proposal Currently at the consultation stage of 3 primary schools Two with high per capita costs- One listed on a recent publication as one of the 50 highest primary schools per capita costs by David Laws.

41. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 41 Impact on a village if school closes Will vary depending on whether the school is the ‘heart of the community’ and therefore has the greatest impact. – becomes a ‘retirement community’ Where the school plays no other part than to educate, the village often carries on as before Very hard to say with any certainty

42. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 42 Small village schools Inflexibility eg. Teachers don’t leave- results in high cost teachers Class size implications- volatile pupil numbers – a few pupils number change makes a big difference – lumpy intakes/ split age classes Low ISR for heateachers- recruitment and retention issues Headteachers have a teaching commitment/ who is in charge when not in school ie out on courses etc Segregation of duties/multi tasking Economies of scale ie school meals Old victorian school house- no hall – does not lend itself to current educational needs High proportion of SEN pupils – resources diverted to meet their needs The old ERYC funding formula addressed these issues

43. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 43 Rural- additional costs/ issues Difficulty with collaboration and partnership working- distance apart- although some very good examples in the ER where this is working well. Holding meetings/ training sessions-distance to travel Transport links Distance not as the crow flies More premises to fund- lump sums Headteacher recruitment- small field of applicants Falling rolls in secondary schools, temporary staff appointments/ redundancies/ recruitment, retention in subject areas

44. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 44 State of school buildings- see handout Old buildings- –Diverts funding away from teaching and learning (including IT) to running and maintenance costs of the building –Size of rooms, some schools still needing major overhaul –Roofing/ boilers/ toilet refurbishments/ general r&m/ high energy costs New funding formula does not recognise this in any way. Devolved capital only enough to cover minor works

45. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 45 ERYC Capital Position 145 schools in ERYC (excludes 7 academies) £445m – estimated cost of capital works required 2013/14 Funding £6.421m (excludes Devolved Capital) 69 years to fund works required No Building Schools for the Future in ERYC 4 ERYC Schools in Priority School Building Programme (includes 2 academies) In comparison Hull’s BSF Programme £400m

46. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 46 High needs pupils in other LA’s ER have 135 High Needs pupils in 24 settings across 3 other LAs, Hull, York and North Yorkshire. Only 10 settings responded to our letter after 4 weeks. No agreement reached with any setting yet. Time consuming nightmare!

47. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 47 What the ER would like Formula changes to reflect -Variable lump sum on size and sector of school -A factor to reflect the condition survey of school buildings -A factor to reflect class sizes and ICSR’s -3 year averages for attainment data -BUT must have a fair allocation of the overall funding pot- which includes recognising sparsity and the additional costs associated with a rural authority. If not just moving money around, creating different winners and losers

48. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU17 9BA Telephone 01482 887700 www.eastriding.gov.uk 48 Suggestion KS1 funding- As the DFE will already have the data on the number of pupils in KS1, have the number of ‘phantom’ pupils to bring up to the next multiple of 30 as a factor and let LAs attach a value. Very simple and transparent and will fund KS1 classes appropriately to meet ICS regulations.