1. School Funding Formula 2014/15 Consultation Felicity Roe Assistant Director, Children’s Services

2. Hampshire School Funding Review of 2013/14 arrangements How Hampshire compares with the national picture National issues 2014/15 arrangements Consultation on changes to the formula for pupils in mainstream schools Questions

3. Review of 2013/14 arrangements Recap on the last year –March 2012 - “Next Steps towards a fairer system” –June 2012 - “Arrangements for 2013/14” –July 2012 - Principles agreed as Schools Forum –September 2012 - Consultation with all schools –October 2012 Agreed factors submitted to EFA –Late December - DSG confirmed –31 January 2013 Final pro-forma to EFA –20 March 2013 New style budget shares produced

4. 2013/14 Review Primary phase Number of losers 191 (208 in initial modelling) Number of losers and gainers over 10%: 15 schools (25 in initial modelling) 72% of schools lost or gained less than 5% of their 12/13 budget share Differences between July modelling and final outcomes largely due to DfE changes to lump sum ceiling and the introduction of a mobility factor

5. Bandings Actual Funding Formula July 2012 Forum Paper (£000’s)GainersLosersGainersLosers 0 - 25 14082107119 25 - 50 63515445 50 - 75 2231 20 75 - 100 6111815 100 - 150 21477 150 - 200 0102 200 + 0100 Total 233191217208 2013/14 Review: Primary

6. 13/14 Review Secondary phase Number of losers 28 ( 34 in initial modelling) Number of losers and gainers over 15%: 1 (2 in initial modelling) 73% of schools lost or gained less than 5% of their 12/13 budget share Differences between July modelling and final outcomes largely due to DfE changes to lump sum ceiling and the introduction of a mobility factor

7. 2013/14 Review: Secondary Bandings Actual Funding Formula July 2012 Forum Paper (£000’s)GainersLosersGainersLosers 0 - 25 75210 25 - 50 6541 50 - 100 8287 100 - 150 7663 150 - 200 7083 200 - 300 7272 300 - 400 0516 Greater than 400 0302 Total 42283634

8. National comparisons Primary NOR No. of GainersNo. of Losers 0 - 5012 51 - 100277 101 - 1504915 151 - 300119 301 - 5003342 501+46 Total233191 Gainers and Losers by Number on Roll Primary NORNo. of GainersNo. of Losers 0 - 5012 51 - 100277 101 - 1504915 151 - 300119 301 - 5003342 501+46 Total233191 Secondary NORNo. of GainersNo. of Losers 0 - 50003 501 - 700213 701 - 1000138 1001 - 1300193 1301 - 160050 1601+31 Total4228

9. Comparison of HCC and national picture IndicatorHigh / Average / Low Comments Age Weighted Pupil Unit (AWPU) value £ LowDue to high lump sum. Still above minimum requirement (£2,000 Primary, £3,000 KS3+4) % of deprivation fundingBelow average100% of deprivation funding received is allocated which is lower compared to other authorities % of funding distributed though EAL factor Average % of funding distributed though mobility factor Average % of funding distributed though Low attainment factor Average LAC value £Above averageMost authorities in region of £500 - £1500 (HCC £1983) Lump SumHighRanges from less than £50k - £200k. Most LA between £100k - £150k

10. National Comparisons HCC

11. National Comparisons

14. National position Spending Review plans for 2015/16* –Schools budget including pupil premium to be protected in real terms –16-19 and early education sector will be required to improve their efficiency –Increase to 40% of 2 year olds entitled to free early education –National school funding formula for 2015/16. Consultation Autumn 2013. *(26 June 2013 announcement)

15. National position for 2014/15 General points Same per pupil funding for DSG – flat cash Continue with 3 notional blocks (Early Years, Schools and High Needs) Restrictions placed on funding through pupil led factors (minimum of 80%) Minimum AWPU values imposed. £2,000 for Primary and £3,000 for KS3 & KS4

16. National changes for 2014/15 Lump Sum – maximum value reduced from £200,000 to £175,000 New factor for Sparsity Secondary Low Attainment – remains level 3 or lower in KS2 but can now be in either Maths OR English (from 2013 failure to achieve L4 in reading or teacher assessed writing) Primary Low Attainment – remains EYFSP but changes to non-achievement of any of the 12 prime areas of learning Y1 2013 onwards Mobility – threshold of above 10%

17. New national factor for 2014/15 Sparsity The distance a pupil lives from their second nearest school as the crow flies DfE – “Necessary schools in rural areas” Criteria 37 Primary and 3 secondary eligible in Hampshire PhaseNORSparsity measure Primary<1502 miles Secondary<6003 miles

18. Hampshire Formula 2014/15: consultation Key principles* Maintain current funding distribution between phases and blocks Maintain current size of funding ‘pot’ for each factor High end lump sum to protect small schools *(remain the same as for 2013/14) The consultation asks only for objections to these principles

19. Hampshire formula 2014/15: consultation Options for restricting gains Gains can be restricted. No national set rate. Two methods allowed: Option 1 – ‘Capping’ gains per pupil Option 2 – ‘scaling back’ (reduction) of gains The consultation in 2012 showed schools favoured the cap as it mirrored the principle of MFG. Proposal Apply the cap in 2014/15 to keep turbulence to a minimum. The actual cap value will be dependent on the cost of MFG and the final DSG settlement The consultation asks only for objections to this proposal. MFG and Cap calculator provided with the consultation

20. Hampshire formula 2014/15: consultation Size of the lump sum For 2014/15 the maximum allowable lump sum is £175,000. (Can be different for each phase). After extensive modelling £175,000 has been calculated as being the optimum amount for both primary and secondary. This minimises the impact of the funding reform on smaller schools in Hampshire. The consultation asks only for objections to this proposal.

21. Hampshire formula 2014/15: consultation Sparsity funding In order to protect small schools from the potential loss in lump sum from £190k - £175k a fixed sum has been set at £15,000 Disappointing number of Hampshire schools qualified for funding due to the DfE’s set criteria School Forum were minded to support those schools that are eligible The consultation asks only for objections to this proposal.

22. Hampshire formula 2014/15: consultation Mobility funding 2013/14 most schools received some funding 10% threshold significantly reduces number of schools eligible Primary 60 schools eligible in 2014/15 Primary budget reduced by 50% to remove excess levels of funding Secondary 1 school eligible in 2014/15 Value set at £20,000 – taking into account previous turbulence and mobility funding The consultation asks only for objections to this proposal.

23. Hampshire formula 2014/15: consultation Re-distribution of funds There will be a surplus of funds arising from: –Changes to mobility factors; –the lower lump sum These need to be re-distributed elsewhere in the formula The consultation outlines four options with surplus funds going to either AWPU or low attainment or a combination of both. Schools are being asked to indicate which method for re-distribution they would prefer.

24. Hampshire formula 2014/15: consultation De-delegated in 2013/14 Contingencies (including schools in financial difficulties) Licences / Subscriptions Staff costs -Trade union duties, suspensions, headteacher conferences Ethnic Minority and Traveller Achievement Service (EMTAS) Behaviour Support Teams Delegated 2013/14 School milk Insurance Library and museum services Use of Free School Meals (FSM) factor Removal of factor for 2014/15 The consultation asks for responses on continued de-delegation of the five services shown above & any objections to the removal of FSM

25. Hampshire formula 2014/15: consultation What do you want to do if the DSG settlement gives you additional or reduced levels of funding in schools block? Change unit values OR Increase / decease cap Let us know through the consultation

26. Place funding –Special schools and resourced provisions (including post 16 places) will be funded at £10,000 (additional post 16 funding will be included within the top up framework) Minimum Funding Guarantee (MFG) –Continues at -1.5% for special schools and resourced provisions –In 2014/15 MFG only protects for changes due to the formula and pupil characteristics, not due to changes in place numbers –MFG also applies to top-up funding. Values set should be no less than 98.5% of the 2013/14 value National consideration is being given to a High Needs factor in the formula in future years. In 2013/14 Schools forum agreed a budget to support disproportionate numbers of SEN children in mainstream schools (The consultation seeks views on whether this should continue in 2014/15 ) High needs pupils

27. Other national changes Schools with falling rolls New in 2014/15 Top-slice DSG to create a fund to support schools in exceptional circumstances Clear demographic data required to show there will be an increase in next 2-3 years Must be rated good or outstanding by Ofsted Criteria will be taken to December Schools Forum Schools Forum representation Must include a rep from an institution providing post 16 education (replacing rep from a 14-19 partnership)

28. Consultation Closes 20 th September Seeking views on: Principles Lump sum, sparsity and mobility changes Options for re-distribution Delegation / de-delegation Comments

29. Timeline 2013 10 July Schools Forum agrees principles, consultation timeline 30 AugustHampshire formula consultation sent to schools 20 Sept Hampshire consultation closes 24 October Schools Forum to agree formula and de-delegation 31 OctoberLocal authorities to submit schools draft block pro- forma to Education Funding Agency. 16 Dec DfE to confirm the DSG allocations for 2014-15 21 JanSchools Forum agree final proforma sign off 21 JanLocal authority submit draft block pro-forma to Education Funding Agency 28 FebHampshire school budget shares issued

30. Questions