1. School Revenue Funding Arrangements 2019-20
Shropshire Governors/Headteachers/School Business Managers
Lord Hill Hotel, Shrewsbury
Wednesday 10 October 2018, 4.30pm to 6.00pm

2. Welcome and Introductions
The key areas that will be covered in the presentation are:
School revenue funding arrangements for
Launch of consultation with maintained schools on de-delegation and top-slicing proposals for education support services in
Forward financial planning
Replacement of the Schools Financial Value Standard (SFVS)
Pressure on High Needs budget

3. School Revenue Funding Arrangements for 2019-20

4. School Revenue Funding (1)
Additional funding for schools of £1.3 billion nationally, originally announced in July £416 million in and £884 million in
National funding formula (NFF) introduced in April 2018 with at least two years transitional arrangements in place for and
Following consultation with Shropshire Schools Forum and the wider school community, Shropshire Council agreed to distribute Shropshire’s Schools Block allocation to Shropshire schools in line with the NFF

5. School Revenue Funding (2)
The schools NFF will be broadly the same as the NFF, with the following key differences (already announced):
The funding floor will increase to 1% against the baseline (0.5% in )
The gains cap will increase to 6.09% against baseline (3% in )
The minimum per pupil funding levels will increase to £3,500 and £4,800 for primary and secondary schools respectively (£3,300 and £4,600 in )
NB The funding floor protection does not protect against a falling roll

6. School Revenue Funding (3)
Additional changes for include:
The introduction of a growth factor on a formulaic basis, rather than historic spend. This is new funding for Shropshire in The local authority will agree a basis for distribution with Schools Forum in line with government required criteria such as meeting basic need.
The primary low prior attainment factor value per pupil will reduce slightly to £1,022 in from £1,050 in to reflect the cohort increase that has followed changes to the Early Years Foundation Stage Profile made in The total proportion of spend on primary LPA nationally will be maintained.
Local funding formula arrangements extended to

7. School Revenue Funding (4)
Premises factors in :
Premises factors (rates, split site, exceptional circumstances, PFI) in will be calculated based on spend levels
The Government is continuing to consider the long term approach to premises factors in the NFF with a view to developing a formulaic approach

8. School Revenue Funding (5)
In Shropshire’s Schools Block allocation of £157.9m was sufficient to fund Shropshire schools through the local funding formula in line with the NFF factor values and transitional funding floor protections and gains caps as well as allow for the transfer of £784k (0.49%) to the High Needs Block.
The Government announced in July 2018 Shropshire’s primary unit of funding (PUF) and secondary unit of funding (SUF) for as £4, and 4, respectively. These units of funding will be multiplied by the total October 2018 school census numbers on roll across Shropshire and added to the historic spend on premises factors and the new growth funding to give a total Shropshire Schools Block allocation for distribution to Shropshire schools through the local funding formula.

9. School Revenue Funding (6)
Individual school budget shares for will be based on October 2018 census data
Shropshire’s local funding formula for will mirror the NFF, as in , including the funding floor protection and gains caps
We will aim to publish individual school budget shares with maintained schools by early February, as in previous years. Academies will receive their 2019/20 general annual grant (GAG) allocations via the Education and Skills Funding Agency (ESFA)
Pupil Premium Grant allocations for will be based on January 2019 school census data. Pupil Premium Grant is allocated to schools in addition to individual school budget shares

10. School Revenue Funding (7)
National Funding Formula – 14 factors

11. School Revenue Funding (8) Formula Factor Weightings Per Pupil - Primary
Basic per pupil funding (AWPU)
£2,746.99
Deprivation:
- FSM
£440.00
- Ever 6 FSM
£540.00
- IDACI Band F
£200.00
- IDACI Band E
£240.00
- IDACI Band D
£360.00
- IDACI Band C
£390.00
- IDACI Band B
£420.00
- IDACI Band A
£575.00
English as an Additional Language
£515.00
Low Prior Attainment
£1,050.00
£1,022.00
Mobility
Historic Spend
Lump sum*
£110,000.00
Sparsity
£0 - £25,000
£0 £25,000
Premises
Growth
Lagged growth
* fixed sum and not weighted on a per pupil basis

12. School Revenue Funding (9) Formula Factor Weightings Per Pupil - Secondary
Basic per pupil funding (AWPU)
Key Stage 3 £3,862.65
Key Stage 4 £4,385.81
Deprivation:
- FSM
£440.00
- Ever 6 FSM
£785.00
- IDACI Band F
£290.00
- IDACI Band E
£390.00
- IDACI Band D
£515.00
- IDACI Band C
£560.00
- IDACI Band B
£600.00
- IDACI Band A
£810.00
English as an Additional Language
£1,385.00
Low Prior Attainment
£1,550.00
Mobility
Historic Spend
Lump sum*
£110,000.00
Sparsity
£0 - £65,000
Premises
Growth
Lagged growth
* fixed sum and not weighted on a per pupil basis

13. Consultation on De-delegation and Top-slicing from Maintained School Budgets in 2019-20

14. Background
Shropshire Schools Forum made commitment in January 2017 to formally consult annually with the wider maintained schools community on any future proposals on the central retention of Dedicated Schools Grant (DSG)
Key decisions were made by Schools Forum on 7 December 2017 on the top-slicing and de-delegation for central support services from maintained school budgets in the financial year
The consultation on the central retention of DSG from April 2019 is being launched today and will run until 16 November
Important to note that decisions taken by Schools Forum, following consultation, impact on all maintained schools
Delegation = the schools taking responsibility for the aspect currently supported by retention

15. De-delegation
Centrally held budgets within the Schools Block of DSG can be de- delegated to maintained schools by the sector representatives on Schools Forum, with decisions taken on an annual basis
Schools Forum 7 December 2017
Approved de-delegation of funding in the following service areas:
pupil growth contingency (primary only)
maternity cover
trade union duties, and
school improvement
Did not approve the de-delegation of funding for fidelity insurance

16. Top-slicing
In December 2016 the Government’s school revenue settlement guidelines allowed local authorities to retain some of their Schools Block of DSG to carry out statutory duties for maintained schools, previously funded through general duties Education Services Grant, which was removed in September 2017
Schools Forum 7 December 2018
Approved top-slicing of maintained school budgets to continue support for: redundancies, statutory and regulatory duties in respect of human resources and health & safety, statutory finance functions, and statutory duties in relation to education welfare and inclusion

17. Impact in

18. Pupil growth contingency
Contingencies budget for targeted support to maintained primary schools where pupil numbers increase by at least 15% of their funded number on roll (raised in from previous level of 10%)
Funds actual additional costs directly resulting from pupil growth
Current forecast is that the budget may underspend in

19. Maternity cover
Funds salary costs of staff on maternity leave in maintained primary and secondary schools, with schools only liable for the costs of the replacement employee
Budget increased in due to sharp rise in costs in
Current forecast is that the budget is on track in

20. Trade union duties (facilities time)
Funds costs of trade union representatives supporting their members in maintained schools
Strong lobbying each year from professional associations for the continued de-delegation of these funds (letter from unions in pack)
Budget has reduced over the years in line with reducing number of maintained schools

21. School improvement
Part funds statutory school improvement support for maintained schools through the Education Improvement Service
Costs are partly offset by the receipt of School Improvement Monitoring and Brokering Grant, for which confirmation has been received that it will be continuing into
Reduced level of de-delegation being sought in , down from £150,000 to £100,000
No proposal being presented for a delegated or buy-back option, given the statutory nature of the support being provided

22. Redundancy fund
Underwrites the cost of premature retirement and redundancy of staff in maintained schools
Overall costs have risen in the last three years, despite the number of maintained schools reducing
Cost per pupil has been held at £19.81 for two years – every effort will be made to keep the unit cost at current level, but maintained schools need to prepare for a possible increase

23. Statutory school finance
Centrally retained funding underwrites the costs of officer support for statutory financial functions on behalf of maintained schools
Support includes: monitoring/control of school balances; advice/ support to schools in financial difficulties; challenge to schools not exercising appropriate financial controls, and; appraising/approving licensed budget deficits
No proposal being presented for a delegated or buy-back option, given the statutory nature of the support being provided

24. Statutory human resources and health & safety
Funds statutory and regulatory functions in the area of human resources and occupational health and safety, previously funded through general duties Education Services Grant
Local authority remains the employer of staff in maintained schools, with the exception of voluntary aided schools, who employ own staff
These functions are not costed into the annual service level agreements
Top-slice for will remain unchanged for a third year, at £4.40 per pupil

25. Education welfare and inclusion
Part funds education welfare, delivered through the Education Access Service (EAS), which also receives funding through the retained duties Education Services Grant, as well as trading with academies
Top-slice provides maintained schools with access to all EAS support including education welfare, attendance and inclusion/exclusion officers, a gypsy Roma and traveller teacher, child employments services and performance licensing
Top-slice for is being held at the level of £11.52 per pupil

26. Consultation
A consultation document is being released today to all maintained schools – consultation document and response form in your pack
Copies available on the Shropshire Learning Gateway at
The consultation will run until Friday 16 November
Completed forms to be scanned and ed to
A report to Schools Forum on 22 November will be informed by the consultation responses
Decisions on the central retention of Schools Block funding in , through de-delegation or top-slicing, will be taken at this meeting
Maintained schools will be informed of the Schools Forum decisions before the end of the Autumn term

27. Are there any questions?

28. Forward Financial Planning

29. Forward Financial Planning (1)
Sound forward financial planning is key to ensuring a school’s ongoing financial sustainability
Many Shropshire schools have set budget plans with in-year deficits that are not sustainable beyond the end of this financial year
Governing bodies should be considering at least 3 year forward plans on a rolling basis
If there is uncertainty over longer term affordability of new or replacement staffing posts, consider temporary appointments
Consultation on the removal of the control on balances mechanism

30. Forward Financial Planning (2)
Cost pressures:
Incremental pay progression
Pay awards
Teachers pay rises between 1.5% and 3.5% - Government will fund rises above 1% with a new teachers’ pay grant
Support staff pay rises between 2% and 9% in and proposed between 2% and 7% in
Employers’ pension liability
Teachers Pension Scheme current employer contribution rate of % will be increasing to an estimated employer contribution rate of 23.6% for the period 1 September 2019 to 31 March 2023
Non-pay inflation

31. Forward Financial Planning (3)
Teachers’ Pay Grant w.e.f. September 2018
Grant based on number of pupils aged 2 to 19
Schools with fewer than 100 pupils, grant will be allocated based on 100 pupils. High Needs settings based on number of places.
Teachers’ pension increase funding w.e.f. September 2019
DfE will provide funding to meet the additional costs of the teachers pension employer contribution rate increase – a consultation process will take place to determine final funding arrangements
£ per pupil
£ per pupil
Primary
16.40
28.29
Secondary
26.54
45.56
Special/AP
65.65
113.46

32. Forward Financial Planning (4)
Support available:
Government’s ‘Supporting excellent school resource management’ website offers information, tools, training and guidance to help schools ‘reduce cost pressures and make every pound count’
management/supporting-excellent-school-resource-management
(see handout in pack)
Government’s schools financial benchmarking website can highlight areas of expenditure for review
Shropshire Council’s traded Schools Finance Team support

33. Replacement of the Schools Financial Value Standard (SFVS)

34. Schools Financial Value Standard
Schools Financial Value Standard (SFVS) assessment has been a requirement since September 2011
Primarily aimed at governors its purpose is to assist schools in managing their finances and to provide assurance of secure financial management
DfE announced their intention to introduce a new school resource management tool to replace the current SFVS from April 2019
The new tool will be in two parts:
A checklist – a series of questions which look at the systems, structures and processes which are in place in making decisions about the allocation of resources
A dashboard – a new data-based element which looks at how a school’s data compares to thresholds

35. Pressure on the High Needs Budget

36. High Needs funding
Significant pressure on the High Needs budget in Shropshire, reflected nationally
Increasing numbers of pupils with high needs, increasing complexity of need and increasing costs of specialist provision
Shropshire’s notional High Needs Budget only increases by £0.116m from £25.089m in to a notional allocation of £ in
High Needs budget funds special schools/academies, AP, high needs top-ups in mainstream schools/academies, hospital education, SEN support services and places in independent special schools

37. School funding briefing
Shropshire is part of f40, a lobby group of the lowest funded education authorities in England
Shropshire Schools Forum and f40 supported the move towards a National Funding Formula and welcomed the additional funds in
However, concerns remain about one unfair system being replaced by another, with existing inequalities being ‘locked in’
Schools Forum, Council members and officers continue to lobby local MPs to press for more funding for schools and a fairer formula
f40 have summarised their concerns and presented ideas on how these can be addressed (see handout in your pack)
It is incumbent upon all members of the education community to continuing lobbying for a better deal for Shropshire schools and our children and young people

38. In conclusion, are there any final questions?

39. Thank you
If you have any queries or require further information, contact:
Phil Wilson –
Gwyneth Evans –