1. From the School Budget and Private Voluntary Independent (PVI) Team
School Budget Update 2017/18
From the School Budget and Private Voluntary Independent (PVI) Team

2. Introduction Two sections: Update Schools Funding for 2017-18
Update on Schools National Funding Formula (SNFF) consultation

3. Guidance School Budgets were issued on Tuesday 28 February
The following documents have been generated:
E-bulletin 28 February Patrick Leeson – providing an overview of the funding headlines for
Delegated Funding Guidance – detailed guidance on the changes for (published on KELSI)
Primary and Secondary School Funding Guidance detailed guidance (currently being updated and will be published on KELSI)
Funding Templates (published on KELSI)
Guidance how to complete Templates (published on KELSI)
Please read

4. Section 1 - Update on Schools Funding for 2017-18
Seventh consecutive year of DSG flat cash per pupil, this means no funding for inflationary pressures
Will explain under national funding formula what is happening in future years
Un-funded pressures include: Apprenticeship Levy, Teachers pay award and Support Staff pay award – around 2% overall pressure
Minimum Funding Guarantee (MFG) set at -1.5%, set at the same rate since

5. Schools update continued
Apprenticeship Levy- overview
For the purpose of calculating the Apprenticeship Levy there are two categories of schools: Community (Com) and Voluntary Controlled (VC) schools - the employer is considered to be the local authority and so for the purpose of the Levy calculation the schools are included. This means any school in this category will be liable to pay the levy, regardless of whether they use the Council for payroll services
Voluntary Aided (VA), Foundation and Academy (incl. MAT’s) schools – the employer is considered to be the governing body and so they must assess the size of their pay bill and act accordingly
0.5% increase on salary bill, £3m threshold and £15,000 exemption
E-bulletin 10th January
For further advice about the budget and paying the levy please contact the Business Manager Schools Financial Services
For advice and support in employing and training an apprentice please contact Head of Skills and Employability

6. Schools update continued
Mainstream High Needs - Funding Pressure
Significant increase in the number of primary aged pupils claiming High Needs funding
Spend = £14m, estimated spend £23m
Budget £18m, an overspend of £5m
At SFF meeting on the 9th December, it was agreed to transfer £5m from the Schools Block to the High Needs Block
The £5m pressure will be funded by reducing the Primary School low prior attainment factor by £ per pupil

7. Schools update continued
Mainstream High Needs - Funding Pressure continued
Also agreed on the 9th December was to reduce notional SEN budget by £1.8m for future high needs pressures
No school will pay more than 3% of its notional SEN budget towards the first £6,000 has now increased to 10%
Schools receiving notional SEN funding of up to £200,000 were getting some notional SEN top up in
Now only schools receiving notional SEN funding of up to £60,000 will receive some notional SEN top
Second threshold where schools will not pay more than 20% of notional SEN funding towards the £6,000 has increased to 28%

8. Schools update continued
Change to Factor 2 - Income Deprivation Affecting Children's Index (IDACI)
In the IDACI dataset was updated– cost to Kent’s MFG was £2m
Education Funding Agency (EFA) nationally acknowledged level of turbulence and adjusted the number of children in each band to better reflect the distribution of
This change would have cost Kent a further £1.5m in
We have adjusted rates to reflect the redistribution of children, so that overall funding level is similar to – no additional cost
Point to note – EFA have changed description of bands, band 1, now band F, band 2 now band E and so on

9. Schools update continued
Primary Phase adjustment to Low Cost High Incidence SEN (LCHIS) funding rate, formula factor 6
Primary rate reduced from £ to £ per pupil.
Transfer in funding from Schools Block to High Needs block to fund pressure for additional Mainstream HNPs - £178.27
Foundation Stage Profile – Change in profile
As judgements replace scores one year group at a time, the percentage of primary pupils qualifying for Factor 6 continues to increase.
A judgement of ‘Failing to achieve a good level of development’ (Yr groups 1, 2 3 and 4) or a score of less than 78 (Yr groups 5 and 6) qualifies. More pupils qualify under the new judgement than the score of 78.
A reduction in the rate of £20.32 (£ to £530.52) has been made in order to maintain the same level of funding overall.

10. Schools update continued
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 early in March confirming entitlement and amount.
If you are entitled to RR it will be shown on the growth tab on the template.

11. Schools update continued
Pupil Premium
Same rates as :
Ever 6 Free School meal (E6FSM) – Primary £1,320 and Secondary £935
Ever 6 Service Children (E6SC) - £300
Post Looked After Children (PLAC) - £1,900
Based on January count, indicative budgets for E6FSM and E6SC (April to June) - adjustment in July

12. Schools update continued
Pupil Premium- continued
The Virtual Schools Kent (VSK) will be publishing further guidance in due course and it is our understanding that this information will be published on their website
However based on the information supplied by the VSK Headteacher, 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

13. Schools update continued
Universal Infant Free School Meals (UIFSM)
Academic year is the third 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
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 and adjusting for change in eligible pupil numbers.
Devolved Capital Formula (DCF)
We have published indicative DFC budgets for that are based on the January 2016 census and the current years funding rates. Final allocations will be confirmed in March, although we are not expecting any material changes.

14. Schools update continued
Year 7 Catch Up
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 2016 to March 2017 in November The final payment for the period April 2017 to August 2017 will be made to schools in May 2017
The DfE has committed to continue to fund the Primary PE and Sport premium at £150m a year until Details of the academic year allocations and grant conditions have not been published and we are not expecting them until October

15. Schools update continued
Early Years 3 & 4 Year Old Free Entitlement
There was an Early Years National Funding Formula consultation in
The proposed outcome for will be ratified shortly
There are two changes that maintained providers need to be aware of, all else has remained the same
Base rate will increase from £3.91 to £3.96 from September 2017 (dependent of ratification)
The 30 hour free entitlement will come into effect from September 2017

16. Section 2 - Proposed New Schools National Funding Formula (SNFF)
The SNFF consultation closes on the 22 March – so changes could still be made, not set in stone
E-bulletin circulated to schools 24 January:
Includes an overview of the proposed changes
Link to individual school calculation provided by Education Funding Agency – based on budgets
Link to consultation documents
Schools encouraged to respond to consultation
Joint response LA and SFF- broadly the same

17. SNFF continued What is the new SNFF ?
It is a national redistribution, no additional funding
It is called a Hard SNFF
It has 9 factors which are applied to all schools in the country
The funding rates for the factors will be the same for all schools in the country

18. SNFF continued
Proposed factors and funding rates for the proposed new national funding formula.

19. SNFF continued Winners and Losers in Kent % movement
Selective schools

20. SNFF continued
In total, Kent schools are set to gain £29.5m (+3.6%) when the NFF is fully implemented
Some of our schools are gaining 10%+
But 140+ schools are set to lose

21. SNFF continued Generally speaking . . . Schools in deprived areas gain
Schools who have high numbers of pupils with low prior attainment gain
Secondary non-selective schools will see the largest gains
Secondary selective schools will only see small gains
Small primary schools lose

22. SNFF continued - Implementation
no change to methodology
Funding given to LAs (Pupil No x LA rate per pupil)
LAs operates local formula
LA can move funding between blocks (with Forum permission)
Soft NFF
LA total is aggregate of NFF for each school
Transitional movement in funding Kent will get £12.7m of the overall £29.5m
Schools who gain – capped at 3%
Schools who lose - MFG -1.5%
LA operates local formula

23. SNFF continued- implementation
= Soft NFF continued
Greater restrictions on moving funding between blocks
= Hard NFF
EFA operates national formula
Schools who gain – capped at 2.5% (maximum overall increase 5.5%)
Schools who lose – MFG -1.5% and Floor -3%
100% of schools block goes to schools
No LA discretion (except possibly rates, PFI, Split sites, exceptional premises factors)

24. What happens next LA and SFF response to consultation- main points:
It is good that overall Kent schools have benefitted from the funding reforms (£29.5m)
However:
National rates are based on current spending averages rather than an evidenced/needs led basis – All schools should have basic amount to deliver curriculum
A new floor to limit the reduction to -3% per pupil Some schools therefore protected on historic funding levels for many years - Does not achieve main objective of SNFF – FAIRNESS
The SNFF needs to recognise there have been so many years of flat cash and more funding needs to be put in to school funding
Restriction on moving funding between blocks
Schools are encouraged to respond to the consultation

25. Forecasting DSG income 2018-19 and 2019-20
MFG – template options -1.5% to 3%
Options -1.5% to 0% - same criteria as last year
Options 0.5% to 3% - may adjust when we know more about outcome of national funding formula.
MFG – template options -1.5% to 5.5%
Options 0.5% to 5.5% - may adjust when we know more about outcome of national funding formula