1. Education Funding and Academies
Brian Gale
Director Policy and Campaigns

2. Alternative title
What is happening to the money that pays your salary?

3. Content Wider political context – White paper on the public sector
Current funding system
Proposed funding system

4. Political context OPEN PUBLIC SERVICES Choice Decentralisation
Diversity
Fairness
Accountability

5. A sector blind approach
Outlines reform at a macro level setting out a broad vision
No information on specific sectors

6. Open Public Services
There is a clear focus on competition and choice and the role of diverse market provision in driving up standards and in delivering better outcomes for users. (NCVO)

7. Role of the state
A protector of standards and entitlements and as a convenor

8. Standards
The state defines outcomes and standards (a guarantor of standards)
We will ensure that providers of individual services who receive public money are licensed or registered by the appropriate regulator

9. Choice
Wherever possible, we will increase choice by giving people direct control over the services they use. And where it is not possible to give people direct control, elected representatives should also have more choice about who provides services and how.

10. Choice and individual services
We will establish a framework for choice in individual services including health, social care EY provision, schools and FE.

11. The framework will ensure:
Funding follows the individual to their provider of choice
People choosing are well informed and prompted about options available
Providers meet a basic quality requirement enforced by inspectors

12. Choice
We are also fostering the establishment of ‘Choice Champions’ who will promote choice in public services and provide independent scrutiny and challenge to providers and commissioners.

13. Choice
We are also fostering the establishment of ‘Choice Champions’ who will promote choice in public services and provide independent scrutiny and challenge to providers and commissioners

14. Decentralisation
The second principle of open public services: power should be decentralised to the lowest appropriate level.

15. Competition / Diversity
Lack of competition seen as a problem
More competition would improve standards

16. Diversity
We want to embed the idea of diverse and innovative providers competing to raise standards. This includes freeing up providers in the public sector so that they can find newer and better ways of delivering the service. There is now a rich pattern of autonomous providers within the public sector

17. Diversity
To ensure that the benefits of mutualisation are available across the wider public sector, we are giving public sector staff new Rights to Provide – empowering employees to form public service mutuals to bid or request to take over the services they deliver

18. Commissioning Services commissioned from a diverse range of providers
Separation of purchaser / provider roles
Accreditation bodies
Payment by results

19. Existing funding arrangements
Local funding formula for schools and school SEN
National funding for FE and post 16 SEN
Differential funding for academies and maintained schools

20. Dedicated Schools Grant
Sensory Support
Other Service
School
Individual Schools Budget
Centrally Funded Services

21. Individual Schools Budget
Centrally Funded Services
Individual Schools Budget
Sensory Support
Other Service
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School

22. Individual Schools Budget
Centrally Funded Services
Sensory Support
Other Service
School

23. Post 16 SEN Funding YPLA gives LAs a 16-18 SEN Block Grant for schools
FE colleges get an additional support for learning (ASL) budget for students requiring additional funding over and above £5,500
Colleges fund the first £5,500

24. Post 16 SEN Funding
Colleges pay first £5,500 from national funding system which until recently recognised different qualifications
Students costing over £19k funded from Learners with Learning Difficulties or Disabilities placement budget

25. Proposed funding arrangements
School Funding:
Next steps
towards a fairer
system 2012
(but includes FE)

26. Key announcements A new national funding formula
Minimum funding guarantee of –1.5% will continue
Simplified local formulae for distributing money to schools

27. Changes to the way local areas are funded
Consistent funding arrangements for CYP with high needs from birth to 25 years

28. No change to EY funding
Funding of post 16 “high needs budget” transfers from YPLA / Education Funding Agency to Local Authorities

29. FE post 16 “low level” learning difficulties remain with EFA (separate consultation)
For FE move from funding qualifications to programmes of study (Wolf recommendation)

30. The Dedicated School Grant remains (but includes post 16 SEN)

31. The DSG
Schools block
High needs block
Early Years block

32. Schools Block Funds: Maximum delegation
Some minimal LA services
Maximum delegation
Academies & maintained schools more similar

33. Distributing money to schools
Maximise pupil weighting
Reduce formula factors (37 to 10)
Notional SEN budgets retained

34. Notional SEN allocation
Funds first £6,000 of a statement
Can use proxy indicators to determine allocation but not an audit

35. Issue
Should schools be required to pay the first £6,000 of the cost of a statement for a deaf pupil?

36. High Needs Block
Is it a High Needs block or a High Needs and low incidence needs block?

37. High Needs Block A commissioning budget for: Pupils out of school
0 – 25 years with SEN and or a disability with high levels of need

38. HNB pays for: Specialist SEN support services
Additional support in mainstream EY settings, schools, FE (but schools and FE pay first £6,000)
Top up for resourced provision in mainstream and special school provision

39. HNB pays for: SEN Transport Personal SEN budget / direct payments
Educational psychologist??
Statutory assessment teams??

40. SEN Direct Payments Pilots to test direct payments for:
SEN provision set out in part 3 of a Statement and Learning Disability Assessment
Transport provision

41. Specialist provision
Currently funded by the number of purchased places whether occupied or not
Proposal to reduce place funded element to £10,000 per place plus top up based on the number of actual pupils on roll

42. NMSS
Non maintained special schools will receive directly from the government £10,000 per place and LAs will pay the top up fee from the HNB

43. HNB issues A LA commissioning budget not a provider budget?
How are demographic pressures funded?
Should schools partly fund support services?

44. HNB issues
Scope and implications of personalised budgets / direct payments?
Who pays for specialist support in FE in the future?
How is the HNB for each LA to be calculated?

45. HNB issues
Scope and implications of personalised budgets / direct payments
How is the HNB for each LA to be calculated

46. HNB issues
Relationship with the local offer (and national funding for some pre 16 and most post 16 low level learning difficulties)
Viability of specialist provision for pupils with sensory impairment

47. Pre-16 SEN and AP
Post-16 SEN and LDD
Mainstream settings
Specialist settings
All settings
Element 1: Core education funding
Mainstream per-pupil funding (AWPU)
Base funding of £10,000 for SEN equivalent to the level up to which a mainstream provider would have contributed to the additional support provision of a high needs pupil. Base funding is provided on the basis of planned places.
Mainstream per-student funding (as calculated by the national funding system)
Element 2: Additional support funding
Contribution of £6,000 to additional support required by a pupil with high needs, from the notional SEN budget
Contribution of £6,000 to additional support required by a student with high needs
Element 3: Top-up funding
“Top-up” funding from the commissioner to meet the needs of each pupil or student placed in the institution
This diagram appeared as Figure 1 (p.43) of School funding reform: Next steps towards a fairer system.

48. FUNDING FLOW - MAINSTREAM
EFA
EFA
Maintaining local authority
Local authority
Schools Block
Early Years Block
High Needs Block
Schools Block
Early Years Block
High Needs Block
Element 1
Element 2
Element 3
Element 1
Element 2
Element 3
Mainstream maintained school
Mainstream Academy
In the example of the maintained school above, the maintaining local authority is also the commissioning local authority.
The funding for elements 1 and 2 received by mainstream maintained schools and Academies would include separate allocations for pre-16 pupils and post-16 pupils. For maintained schools, these would be passported through the maintaining local authority. For Academies, this would be received direct from the EFA – there is a misprint in the document and we apologise for any confusion (p.82). Top-up funding above this level would be provided from the commissioning local authority, using their High Needs Block.

49. FUNDING FLOW - MAINSTREAM
EFA
EFA
Maintaining local authority
Local authority
Schools Block
Early Years Block
High Needs Block
Schools Block
Early Years Block
High Needs Block
Element 1
Element 2
Element 3
Element 1
Element 2
Element 3
Mainstream maintained school
Mainstream Academy
In the example of the maintained school above, the maintaining local authority is also the commissioning local authority.
The funding for elements 1 and 2 received by mainstream maintained schools and Academies would include separate allocations for pre-16 pupils and post-16 pupils. For maintained schools, these would be passported through the maintaining local authority. For Academies, this would be received direct from the EFA – there is a misprint in the document and we apologise for any confusion (p.82). Top-up funding above this level would be provided from the commissioning local authority, using their High Needs Block.

50. Academy Specialist Provision and FE including ISPs
EFA
Commissioning local authority
Schools Block
Early Years Block
High Needs Block
Special Academy / Free School / FE /FE ISP
Element 1
Element 2
Element 3

51. NatSIP’s and NDCS’s responses to the DfE proposals:

52. Questions? Brian.Gale@ndcs.org.uk