1. 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

2. Introduction
The main topic of the presentation is the introduction Schools National Funding Formula (NFF) from 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

3. 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
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)
Kent’s Local Funding Formula rates and indicative rates for
Please read

4. Update on Schools Funding for 2018-19
Background
Changes to Kent’s Local Funding Formula (LFF) for 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.

5. 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.

6. Headlines from the ESFA Consultation Response - Continued
and 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 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.

7. 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
+ 2.6 % increase to its DSG in
A further + 1.5% increase in its DSG post – 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

8. 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.

9. 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

10. 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 fully reflects the Governments NFF rates

11. What are the changes Kent has two Area Cost Adjustments (ACA) :
London Fringe Schools (Dartford and Sevenoaks Districts) – 3.709% (3.64% %)
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

12. Minimum Funding Level (MFL)
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.

13. 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 and % over the two years.
Kent’s MFG has been set at minus 1.5% for and
Lump Sum
NFF Lump Sum £110, 000
Kent has retained its current lump of £120,000 (£120,083 including ACA 0.069%) for and

14. Ever 6 FSMs and Low Prior Attainment
NFF rate
LFF rate
% of NFF rates
% of NFF rates
Primary
£540
£232
43%
£324
60%
Secondary
£785
£338
£471
Low Prior Attainment
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%

15. 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

16. 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

17. 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

18. 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

19. 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 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.

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

21. Pupil Premium (PP)
Same rates as 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

22. 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

23. Universal Infant Free School Meals (UIFSM)
Academic year 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
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)
Indicative budgets for 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. 

24. 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 2017 to March 2018 in November The final payment for the period April 2018 to August 2018 will be made to schools in May 2018
Academic year saw an additional increase in funding, rates were doubled. Schools should plan for the same funding rates in Final ESFA confirmation likely to be received in October 2017

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

26. 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 ,770 – HNP
Initial action taken – reduce rates for New HNPs from September 2017 by 30% and pay from December.

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

28. Early Years 3 & 4 Year Old Free Entitlement
Same level of Funding received from the Government in compared to – 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 is going to be 39 week year instead of 38 week

29. Any Questions