1. Governor’s FUNDING BRIEFING 2014-2015 And beyond 1

2.  Local Authority get Dedicated Schools Grant (DSG) allocations  Three spending blocks for each authority  an early years block  a schools block  high needs block  Flat cash per pupil for 2014-15  No authority loses more than 2% of its budget in cash terms  Minimum Funding Guarantee that ensures that no school sees more than a 1.5% per pupil reduction in 2014-15 budgets  Excludes sixth form funding and Pupil Premium SCHOOL FUNDING SETTLEMENT FOR ENGLAND FOR 2014/15 School Funding Reform April 2014 2

3.  Process in 2012 to reform the school funding system, so that it is: –fairer –more consistent –transparent  Funding intended for education reaches schools and the pupils that need it most  Move towards National (Fair) Funding Formula  Consultation on ‘Fairer schools funding in 2015-16’  Additional £350m for schools block SIMPLIFICATION OF ENGLAND FUNDING ARRANGEMENTS 3

4.  Delegated to schools in the first instance  More delegation to schools than in the past  Contingencies can be retained centrally but limited range of circumstances  Seven exceptions:  Administration of free school meals eligibility;  Insurance;  Licenses or subscriptions;  Staff costs or supply cover (trade union facilities/civic duties long term supply);  Support for minority ethnic pupils or underachieving pupils;  Behaviour support services; and  Library and museum services. FUNDING ASSUMPTIONS 4

5.  Minimum of 80% of delegated schools block funding is allocated through pupil-led factors. –Age Weighted Pupil Unit (AWPU) † –Deprivation † –Prior attainment –Looked after children (LAC), and –English as an additional language (EAL). († Mandatory factor) PUPIL-LED FUNDING 5

6.  A single per pupil amount (for primary, KS3 and KS4)  Require all local authorities to set an AWPU rate: –at least £2,000 for primary –at least £3,000 for KS3 and KS4.  Deprivation* (* No change from last year) MANDATORY FACTORS 6

7.  Looked after children  SEN / prior attainment  English as an additional language* (EAL)  Pupil mobility  Post-16 provision*  Lump sum  Sparsity (new)  Split sites*  Rates*  PFI*  London fringe* (* No change from last year) OPTIONAL FACTORS (skip) 7

8.  Pupils who were being looked after on 31st March 2013  Regardless of how long they had been looked after i.e. one day  In 2013-14 local authorities had a choice of whether to apply the factor to those who had been looked after for at least a day, at least six months or at least 12 months. LOOKED AFTER CHILDREN 8

9.  Data from the new early years foundation stage profile used in deciding whether a pupil attracts prior attainment funding.  Pupils who did not achieve level 4 in mathematics OR English to attract prior attainment funding.  Mobility applies where more than 10% of pupils in a school are mobile.  For 2013-14 the factors applied where a school had any number of mobile pupils. PRIOR ATTAINMENT AND PUPIL MOBILITY 9

10.  Local authorities to set a lump sum of up to £175,000 and set a different lump sum for primary and secondary schools.  For 2013-14 the lump sum limit was £200,000 and had to be the same for primary and secondary schools. LUMP SUM FUNDING 10

11.  A fixed or variable amount may be applied to small schools  Average distance to pupils’ second nearest school is more than –2 miles (primary) –3 miles (secondary).  The maximum value for the sparsity factor is £100,000 per school  Either as a lump sum to all schools or a tapered amount related to school size. SPARSITY (skip) 11

12.  Where two or more schools merge in 2013-14, the local authority should pay the merged school a lump sum equal to 85% of the two lump sums that the schools would have received in 2014-15 if they had not merged MERGING (skip) SCHOOLS WITH FALLING ROLLS Local authorities to retain a falling rolls fund for good or outstanding schools (including academies) if the schools’ capacity is likely to be needed within the next three years to meet rising pupil numbers 12

13.  Local authorities make initial determination of 2014-15 schools budget, and informing schools of budget shares moves from 15th March to 28th February.  Local authorities put unspent money from the 2013-14 growth and infant class size funds into the 2014-15 individual schools budget, so that it is recycled to schools.  Local authorities to carry over to 2014-15 unspent de-delegated central expenditure to be used for the same purpose as it was used in 2013-14. OTHER CHANGES 13

14.  Protect per pupil funding for schools one year to the next against significant changes  Continue in 2014-15 to operate an MFG set at the same level as for 2013-14 - minus 1.5%  Continue to exclude from MFG calculation : –lump sum; –post-16 funding; –allocations from the High Needs Block, including those for named pupils with SEN; –allocations made through the early years single funding formula; –rates. MINIMUM FUNDING GUARANTEE 14

15. HIGH NEEDS FUNDING School Funding Reform April 2014 15

16.  Place-led funding –Number and distribution of places in the system reflects need and provides financial stability for institutions –Does not require a named individual for a place to be confirmed –Based on the outcome of LA place reviews  Top-up funding –LAs to use high needs budget to meet the individual needs –Over and above the funding provided to institutions through place-led funding HIGH NEEDS FUNDING 16

17.  Funding for SEN pupils in primary and secondary school budgets calculated with reference to a threshold of £6,000.  Schools are expected to meet the costs of the additional support required by pupils with SEN up to that cost threshold  Special schools receive flat rate £10,000 for all their places, including students aged 16-19 HIGH NEEDS FUNDING 17

18. PUPIL PREMIUM AND UIFSM School Funding Reform April 2014 18

19.  Eligible for the pupil premium funding if registered for FSM at any point in the last 6 years (Ever 6 FSM).  Total of £1.875 billion in 2013-14.  In December the DfE announced a ‘top-up’ of £53 for primary FSM or Ever6 FSM pupils.. PUPIL PREMIUM 2013/14 19

20.  Total pupil premium budget increase  £1.875 billion to £2.5 billion  £1,300 for primary school pupil  More ambitious targets and clear expectations of what every child needs to achieve.  By 2016 primary schools at least 85% of their 11 year olds above new threshold  £935 for secondary pupils  £300 for service pupils  £1,900 for children who were looked-after for one day PUPIL PREMIUM 2014/15 School Funding Reform April 2014 20

21.  Head teachers decide how to use the pupil premium  They are held accountable for the decisions they make through:  the performance tables which show the performance of disadvantaged pupils compared with their peers  the Ofsted inspection framework, under which inspectors focus on the attainment of pupil groups, and in particular those who attract the pupil premium  the reports for parents that schools have to publish online PUPIL PREMIUM 21

22.  Free school meals for every child in reception and years 1 and 2 of primary education in England from September 2014  £600m of additional funding made available  £150 million provided to local authorities and through the Academies Capital Maintenance Fund to expand kitchen and dining facilities where needed. £22.5m to small schools in 2014-15 UNIVERSAL INFANT FREE SCHOOL MEALS (UIFSM) School Funding Reform April 2014 22

23. NATIONAL FAIR FUNDING School Funding Reform April 2014 23

24.  Consultation was expected in December 2013  Announcement was expected before Local Elections in May 2014  So that NFFF in place by April 2015  Before the General Election  Clegg and Gove representations to Osborne?  Avoid massive turbulence in transition  Treasury – no money until next CSR  Consultation on ‘Fairer schools funding in 2015-16’  Rushed out on 13 March  Additional £350m for schools block  62 of 152 to benefit NATIONAL ‘FAIR’ FUNDING FORMULA School Funding Reform April 2014 24

25.  Share of £350m  0.68% of total schools budget  Summing amount  New funding amount for LA  Increase to this level if less – 62 0f 152 LAs  Stays the same if more - 90 of 152 LAs  MFG -1.5% still applies  Impact on LAs not receiving more ?  Pay award  2.3% increase in employer pension contributions  General inflation pressures ‘ FAIRER SCHOOLS FUNDING IN 2015-16’ School Funding Reform April 2014 25

26. ‘ FAIRER SCHOOLS FUNDING IN 2015-16’ Top ten getting more School Funding Reform Local Authority Total (Millions) % increase Surrey£24.84.5% Cambridgeshire£20.57.0% Bromley£19.111.3% Leicestershire£17.25.1% Devon£16.24.5% Norfolk£16.03.7% Buckinghamshire£15.25.5% Derbyshire£14.03.4% Brent£13.26.9% Warwickshire£13.04.6% April 2014 26

27. ‘ FAIRER SCHOOLS FUNDING IN 2015-16’ Bottom ten getting something School Funding Reform Local Authority Total (Millions) % increase Oxfordshire£0.50.1% Plymouth£0.50.4% Walsall£0.50.3% Bedford£0.40.4% Milton Keynes£0.30.2% West Berkshire£0.30.3% Barnet£0.20.1% Hillingdon£0.20.1% Isle of Wight£0.20.3% Derby£0.10.0% April 2014 27

28. POST-16 FUNDING School Funding Reform April 2014 28

29.  Moved from funding per qualification to funding per learner. removed any incentive for providers to put students on bigger programmes simply to earn more funding given providers flexibility to determine programmes that meet the needs of students within framework of programmes of study significantly simplified the funding system and audit requirements  Removed funding linked to achievement while retaining funding linked to retention. removed any incentive for providers to put students on easier courses to protect their success rate freed providers to put students on courses more likely to stretch them and draw out their potential including those needing more maths and English POST-16 FUNDING School Funding Reform April 2014 29

30.  Funding no longer to the student for individual qualifications  But for a substantial programme of study.  Full time programmes have to be between 540 hours and 600 hours.  Part time learning is anything less than 540 hr  3 funding rates for part time study. CHANGES IN 16-19 FUNDING METHODOLOGY 30

31.  There is still a funding gap between what schools and FE colleges receive in cash terms for 16-19.  DFE set out a clear plan to close the gap  Take until about 2016 to harmonise funding  DFE is also making substantial year-on-year cuts to funding per student  Offering transitional protection to ensure schools or colleges don’t lose more than 3% per year SCHOOLS VS COLLEGES 31

32.  Total planned budget £7.18 billion  National funding rate for 16-17 year olds maintained at £4000  Rate for 18 year olds reduced to £3300  Impact of 18 y/o changes capped at 2% of programme funding  Disadvantage Block 2 rate remains at £480/£960 for all ages  Formula Protection Funding  Transferred to formula for those earning more  Fixed for those earning less  Last year of Transitional Protection  Mandatory Maths and English a condition of funding  Allocations issued by end of March PARTICIPATION BUDGET 2014-15 32

33.  17.5% cut in funding per full-time student aged 18 at the start of the academic year 2014-15,  Funding per student aged 18 reduced from £4,000 to £3,300  Part of a strategy to achieve the savings required in the 2015- 16 spending review period.  Estimated to affect 100,000 students and save £150 million,  Average cost of £600,000 per post-16 provider  Some will suffer much greater cuts in excess of £1 million.  Sixth-form colleges hit  Many have already suffered substantial funding cuts  Some face the loss of as much as a third of their funding over between 2010 and 2015. STUDENTS AGED 18 33