1. Agenda – Schools Forum May 11 2012 School Reform – what is happening and what does that mean for Leicestershire? Questions The Leicestershire Consultation Response Future membership of Schools Forum Stage 1 Consultation

2. School Funding Reform: Next Steps Towards a Fairer System (?)

3. School Funding Reform Consultation issued March 2012 and builds upon earlier consultations in April / July 2011 Introduces a new system of school funding from April 2013 Consults on aspects of new system, not whether the new system is to be introduced Closing date 21 May – not DfE standard 12 week Different proposals for mainstream and special schools

4. School Funding Reform Not the expected movement to national Funding Formula – now delayed until 2015/16 at the earliest Adopts principle that as much funding as possible is delegated to schools Reduces formula factors Maintains Minimum Funding Guarantee at - 1.5% per pupil for 2013/14 & 2014/15 No movement to formulaic DSG distribution to local authorities Makes no change to the relative funding position of Leicestershire

5. School Funding Reform Moves Dedicated Schools Grant (DSG) from per pupil to three notional funding blocks; Schools / High Cost Pupils / Early Years Establishes a role for the Education Funding Agency (EFA) in validating local formulae Funds academies and maintained schools on the same year data ‘Improves’ Schools Forum arrangements Tables proposals for the replacement of LACSEG

6. Maintained Primary & Secondary Schools Reduces formula factors to 9 (10 th factor only relates to 5 London fringe authorities): Per pupil entitlement – primary and secondary values Deprivation; FSM or IDACI Looked after children* English as additional language* Low cost, high incidence SEN A lump sum of ‘limited size’ Split sites Rates Private finance initiative** * Not currently used in Leicestershire ** Not relevant to Leicestershire

7. Maintained Primary & Secondary Schools Expected minimum thresholds for basic pupil entitlement (options given) Deprivation through IDACI may be ‘banded’ Prior attainment data restricted Lump sum between £100k - £150k and of equal value for all schools, may differentiate between primary / secondary / middle / all through schools Rates allowable – in year adjustments now retrospective i.e. following financial year Ratio between primary / secondary pupils – for 2014/15

8. Maintained Primary / Secondary Schools Principle that Schools Block should be delegated except where; Maintained schools agree that a service should be provided centrally – if school phase agrees collectively Historic commitments – no new commitments or additional expenditure allowable Statutory functions of the local authority – no new commitments or additional expenditure allowable

9. Schools Forum No change to powers / decision making Limits the number of local authority participants to Lead Member, DCS and those providing specific financial or technical advice Only school members allowed to vote Report / minutes to be published Meetings to be open to public Need to reconstitute by July 2012 Potential for further changes

10. Academies Greater budget alignment with mainstream schools Continue to be funded with local authority formula but by EFA Funded on same financial year basis as maintained schools Continue to be involved in Schools Forum decision making

11. Dedicated Schools Grant DSG Blocks; Schools Block – assumed all delegated unless decision taken for centrally held and based upon October census High Needs – includes special schools and 16-25 year olds in further education, based upon 2012/13 spend Early years – budgets for PVI and centrally retained functions, based upon January census

12. High Needs Pupils Applies to special schools and alternative provision Picture unclear about applicability to independent providers A place led approach with ‘top up’ funding All pre 16 SEN pupils ‘High Cost’ where cost of education exceeds £10,000, £8,000 for alternative provision No formula driven budget for maintained special schools

13. High Needs Pupils – Special Schools/Units Base budget £10,000 per place Top up funding dependant upon pupil need SEN Units no longer receive funding through mainstream budget for places Top up funding determined between provider (maintained special school) and commissioner (local authority) possibly on banding system One school potentially - many commissioners Current system of inter authority-recoupment removed

14. High Needs Pupils – Special Schools/Units Outreach, outside place led budget and centrally funded Place numbers set initially at current number of funded places Changes in number of places determined between commissioner and provider Local authority gains funding responsibility for pupils aged 16-25 in FE provision

15. Early Learning & Childcare Local authorities must publish details of the formula and centrally retained early years spend No structural changes for the formula but deprivation must be targeted on the circumstances of the child and not the setting Local authorities to be funded by participation rather than % of population taking up provision Funding for all early years providers to be paid through local authorities More benchmarking on funding across areas

16. Timescales Consultation closes May 21 st Headteacher / Governor Briefings May 31 st – 1st stage of consultation ( formula factors / additional items for delegation) Modelling of options underway Consultation with schools and academies June – July (including summer break) September - Schools Forum to approve changes October - Cabinet to approve changes Proposals submitted to Education funding Agency October 31 st Budgets issued to schools March 2013

17. Challenges Complexity and level of change Time – conflict between modelling and consultation. Non negotiable EFA deadline of 31 st October Engaging schools, academies and Schools Forum in dialogue on options – working groups? Supporting Schools Forum decision making with potentially new Forum members Expectation management

18. Challenges New ways of financial planning for special schools Understanding current costs – high cost pupils Establishing new commissioning framework for high cost pupil places Capacity and resources Communication Developing school understanding of change and its implications

19. Next Steps Consultation response completed and approved Programme of change established and local authority leads identified Establish working group of Schools Forum (1 member per school phase) Establish working group of school business managers / bursars (1 member per school phase) Schedule meetings of Schools Forum – frequency / purpose?