School Funding Reforms 2013/14

1. School Funding Reforms 2013/14 Update – November 2012 Susan Fielden, CYP Finance Manager

2. Introduction • The Department for Education requires the local authority and Schools Forum to implement reforms to school funding with effect from April 2013. • There is no substantive change to the funding levels for Somerset pupils overall but very significant simplification of the formula is required • Initial consultation has taken place in two stages, from July through to October, with a provisional formula submitted to the Education Funding Agency by 31 October deadline • This formula differs from the one exemplified in the consultation following feedback from schools, the Schools Forum and the Technical Working Group • All schools and academies are affected by the changes • Final formula values must be fixed by 18 January

3. Summary of future funding arrangements

4. Basic Formula Recommendations: Lump Sum £103,948 Primary per pupil £2,659 KS3 per pupil £3,654 KS4 per pupil £4,158 Actual funding for rates - Per pupil values include funding for insurance, maternity cover, licences & subscriptions. Maintained schools voted at Schools Forum to de-delegate (re-centralise) Exceptional Circumstances PFI contract costs Split site additional costs – various rates depending on size Rural Technology College Existing mainstreamed grants relating to post-16 provision Expanding schools and infant class size requirements – specific criteria related to sufficiency and basic need The exceptional circumstances relating to middle schools were not approved by the DfE Schools Block – Element 1: Basic Entitlement – Summary of Recommendations

5. Question 1: is there a better balance of lump sum and per pupil funding?

6. Question 2: under what circumstances should additional funding be allocated to schools? Growth Fund (schools and academies) • New simplified funding formula cannot include step funding • Budget can be help centrally to allocate to schools and academies when a new class must be funded. The criteria must be agreed by the Schools Forum Recommended Outline Criteria: funding will be allocated for an extra class: • In order to avoid a breach of Infant Class Size legislation • Where a basic need for school places in an area forces expansion and unavoidable increased teaching costs • Increase of significant housing development with planned in-year growth Contingency Fund (maintained schools only) • Exceptional and unplanned circumstances beyond the control of the governing body

7. Schools Block – Element 2: Additional Educational Needs Data Options Data sets provided by DfE cover: • Deprivation • Current FSM pupils or pupils eligible for FSM in last 6 years • Income Deprivation Affecting Children Index – 6 bands of deprivation based on geographical areas of approximately 400 households • Poor prior attainment • Foundation Stage – either a score of 73 or below or 78 or below • KS2 – level 3 or below in both English and Maths • Other Additional Needs • Number of children with English as an additional language • Number of Looked After children • Pupil mobility

9. Question 3: is there a better way to use the limited data available? Current proposal: • 30% based on FSM (Ever6 measure) • 20% based on deprivation measured through IDACI using weightings • 50% based on low prior attainment If each school could look at all the children identified as having additional needs and analyse according to FSM, low prior attainment and IDACI score (using tool on DfE website by post code) then the TWG would have a rich source of data to consider

10. Income Deprivation Affecting Children Index (IDACI) DfE IDACI Tool: http://www.education.gov.uk/cgi-bin/inyourarea/idaci.pl

11. Question 4: are there additional categories of vulnerable children that need extra support? Additional targeted funding for vulnerable pupils allocated on a termly basis, reflect additional support needs: • Pupils with English as an additional language - consideration needs to be given to the period for which this allocated is paid given analysis of outcomes • Gypsy Roma and Traveller children • Those children living in a Women’s refuge • Looked After Children (consideration to be given to inclusion of children for a period after adoption) • Reintegration of excluded pupil (and potentially a wider correlation with the Fair Access Protocol) • Consideration to be given to an allocation to support a student moving schools in year 11

12. Schools Funding – Element 3: High Needs Pupil Block Top-Up Recommendations • The new formula arrangements assume that a significant proportion of the funding for pupils with high levels of need is delegated to schools through the AEN element • Element 3 of the funding for schools and academies is within the High Needs Pupil Block of the budget and this funds a top up, for those pupils with a level of need equivalent to Level 2 or 3 of School Action Plus • The top-up equates to the current tariff less £6,000 as this amount is assumed to be in the main school formula funding • Contingency arrangements are proposed for small schools where this assumption presents a risk of inadequate funding and for larger schools with a disproportionate number of high needs pupils. • These arrangements would require an approach similar to the existing audit

13. Question 5: how do we find the right balance in funding pupils with high levels of need? • Ability to respond to high levels of need in schools • A manageable level of bureaucracy associated with preparing a bid for funding • A balanced budget that respects the need for universal and targeted funding in schools • A clear statement for schools of the Notional SEN budget • Clarity for parents

14. Question 6: If we were able to influence the national funding arrangements for 2014/15, what additional flexibility would we ask for, recognising the policy commitment to simplicity? Question 7: If simplicity is the new certainty, how do we marry that with a complex and diverse pattern of schools across Somerset?

15. A summary of the key questions: • Basic entitlement (Element 1): is there a better balance of lump sum and per pupil funding? • Under what circumstances should additional growth and contingency funding be allocated to schools? • Additional Educational Needs (Element 2): is there a better way to use the limited AEN proxy data? • Are there additional categories of vulnerable children that need extra support? • High Needs Pupils (Element 3): how do we find the right balance in funding pupils with high levels of need? • If we were able to influence the national funding arrangements for 2014/15, what additional flexibility would we ask for, recognising the policy commitment to simplicity? • If simplicity is the new certainty, how do we marry that with a complex and diverse pattern of schools across Somerset?