1. Fairer Schools Funding and Schools Funding Formula in 2015-16 Agenda Item 10

2. Fairer Funding for 2015-16 On the 13 th March 2014 the Department for Education (DfE) announced proposals to increase DSG allocations for the least fairly funded areas. Begins to address the historical funding basis within the current system. A further stepping stone to a National Funding Formula – although deferred until the government can set plans over a longer period of time. These are positive initial steps but the DfE state that: “Beyond 2015-16 the allocation of funding between local authorities will be a matter for the next spending review.”

3. Original Indicative Impact for Northamptonshire in 2015-16 Latest Indicative Impact

4. Summary of July 2014Discussion Points with Responses Allocate over all 3 blocks? YES Top slice for £1.5m high needs base shortfall? YES Basis of split over the blocks? Number On Roll (NOR) with a High Needs Special Schools x4 multiplier Primary/Secondary split base on NOR? YES Schools formula factors to apply to? AWPU If use to increase the cap? YES

5. £m Revised Fairer Funding Estimate9.9 Increase Due to Carbon Reduction Adjustment (0.3) High Needs Top Slice Agreed with Forum (1.5) Total Available to Distribute8.1 Revised Funding to be Allocated

6. Allocation Across DSG Blocks Forum’s preference was to allocate to all blocks using the NOR with a weighting of 4 for special school pupils (to reflect the higher cost of these pupils) Phase Allocated by NOR July (£) Allocated by NOR October (£) Primary3,195,7104,541,272 Secondary1,880,8022,672,719 High Needs261,376371,429 Early Years362,111514,579 Total5,700,0008,100,000

7. Schools Block Forum Discussion – Capping Levels The fairer funding is not outside of the MFG, therefore as funds are put into AWPU, less total MFG protection is needed (protection level nationally set - 1.5% per pupil). The total removed from capped schools cannot exceed the total value of the MFG protection. With an additional allocation of £7.2m to the AWPU the minimum possible level of cap is 5.7% and the maximum is 6.65%. Possible range of Cap/AWPU levels with allocation of £7.2m MIN Increase in AWPU Value* CAPPrimary (£)Secondary (£) 5.70%79.8575.27 MAX Increase in AWPU Value* CAPPrimary (£)Secondary (£) 6.65%75.8571.27

8. Schools Block – Capping Levels Year/Option 14-15 15-16 MIN 15-16 MAX CAP4.52%5.7%6.65% Number of protected schools 10422 Number of capped schools446649 Number of schools with no capping or protection 145212229

9. Summary 5.7% CAP6.65% CAP No. of Schools £ No. Of Schools £ MFG(+ve) CAP(-ve) Total Pre MFG/CAP300410,693,146300410,303,664 Primary Capped66(1,635,342)49(1,284,263) Primary Protected181,178,901181,205,631 Primary No Cap/Prot17801950 Secondary Protected4459,9364471,650 Secondary No Cap/ Prot340 0 Total Post MFG/CAP300 410,696,641300410,696,682 ESTIMATED BUDGET 410,698,901 DIFFERENCE (not significant) (2,260) (2,220)

10. 2015-16 Proposals 1.To allocate the additional fairer funding allocation as set out in this presentation and to set the cap at the indicative 6.65% as this results in the highest number of schools not subject to capping or protection and results in the minimum number subject to the cap. 2.The reduced funding from central schools block expenditure will be allocated through the formula. 3.All other formula factors will remain as per 2014-15 with unit rates to be finalised when the final DSG announcement is made.

11. 2014-15 factors – no changes proposed to factors in 2015-16 DescriptionUsed in 2014-15 Basic per pupil entitlement (AWPU)Yes (mandatory) Deprivation (based on ever 6 FSM numbers) Yes (mandatory) Private Finance InitiativeYes Split siteYes RatesYes Lump sumYes

12. Factors not used in 2014-15 and NOT proposed for 2015-16 DescriptionReasons (see previous forum papers for more details) Prior AttainmentIn respect of primary schools the use of EYFS is considered not to target the correct schools and concern exists on this data set changing nationally in the future. Looked After ChildrenThis would be allocated by numbers at only one particular point of time i.e. not necessarily reflecting current school need Education as an Additional Lang (EAL) This would be allocated by numbers at one particular point of time i.e. not reflecting current school need. Pupils language skills improve over time and not all EAL pupils need additional support. The above have been debated and their non inclusion agreed annually. The majority of the discussion and analysis took place in the original planning for the new schools funding arrangements – 16 October 2012 forum – agenda item 5.

13. Factors not used in 2014-15 and NOT proposed for 2015-16 DescriptionReasons (see previous forum papers for more details) MobilityOnly if above 10% mobility can eligible schools be funded. Significant problems with EFA data sets provided on this element. (e.g. conversion to academy = 100% mobility) 21 st January 2014 forum (agenda item 5) SparsityOnly impacts on few schools i.e. not all small schools 21 st January 2014 forum (agenda item 5)

14. 2015-16 Proposals Vote Under the Schools and Early Years Finance Regulations Forum is required to vote on the proposed formula factors. However the final decision in respect of the funding formula remains with the local authority.