Consultation on Primary & Secondary Formulae Review

1. Consultation on Primary & Secondary Formulae Review Presented By: Andrew Redding andrew.redding@bradford.gov.uk 01274 385702 Sarah North sarah.north@bradford.gov.uk 01274 385701

2. Session Outline • Presentation • Time for questions • Time to complete a responses form

3. Session Purposes • To present an overview of the reasons why changes are being implemented • To share the thinking behind the proposals • To present an overview of the impact of changes • To answer your questions • To enable you to respond more confidently to the consultation • To collect immediate feedback

4. Do Not Panic!

5. The MFG & the Ceiling • The Minimum Funding Guarantee will protect ‘losers’ • MINUS 1.5% per pupil in 2013/14 & 2014/15 • The Ceiling will cap the gains of the ‘winners’ to pay for the MFG • INDICATIVELY set at 1.73% per pupil • Whether a school or academy* is protected by the MFG or capped by the Ceiling is shown in Appendix 4 • The MFG will not protect against reductions in pupil numbers * recoupment academy (converted from maintained)

6. Appendix 4 Modelling • INDICATIVE ONLY – not representative of 2013/14 allocations • Designed to show the impact of changes vs. 2012/13 actual • Enables schools & academies to “look at the detail” if they wish • x3 key columns in summary • Column 8 (pink): variance in formula funding only • Column 28 (brown): variance including MFG & Ceiling • Column 31 (purple): variance also including estimated Pupil Premium increase in 2013/14 (£900)

7. Caution • All modelling is based on: • 2012/13 DSG funding envelope • Data taken from the October 2011 census, as provided by the EFA • October 2011 pupil numbers • Is your October 2011 census data accurate? • Vitally important that the 4 October 2012 census is completed accurately • No “second chances” • Impact to be reviewed once October 2012 Census dataset is available in December

8. Additional LA Consultations • Early Years Funding • No intended changes to the Early Years Single Funding Formula • Transitional protection for maintained providers ends this year • Integration of the extension of the free entitlement to 2 year olds • Funding High Needs Provision • Significant changes for special schools, resourced & alternative provision • Establishment of a clear ‘continuum’ of funding across all settings • P & S consultation covers the funding of mainstream SEN

9. Why Change? • Required by Government – all Local Authorities • In preparation for a ‘national funding formula’ from April 2015 (at the earliest) • Cross cutting themes: • Simplification & transparency • Less local flexibility • Greater consistency in funding levels • More direct funding relationships e.g. between commissioners & providers of SEN • Less centrally managed support > academies & self managing maintained schools • Greater EFA scrutiny

10. Headlines • Switch from January to October census as the basis for funding • Data on which schools are funded to be provided by EFA rather than calculated by the LA • Much simpler formulae – max of 12 allowable factors, set by DfE • Same formulae apply to maintained & academies • Greater proportion of the DSG delegated to maintained schools • Fewer centrally managed funds and contingencies available for maintained schools to access • Much continuity in the funding of SEN in mainstream schools & academies • Continuation of the Pupil Premium; expected to increase in 2013/14 & 2014/15 • Clear decision making “by phase” required within the Schools Forum

11. Anticipated Impact? • More responsive but less protection against reducing rolls • More responsive but less protection against data ‘blips’ • More funding allocated via pupil no.s alone vs. smaller schools • Individual variances influenced by previous access to factors no longer allowed e.g. specialist schools, NQTs, buildings area • Greater potential for pressure on school budgets from the reduction in centrally managed funds & contingencies, influenced by the extent to which schools accessed these funds • Negatively affects schools with later intakes. Encouragement for earlier intake of children • Schools with higher levels of mobility potentially have a greater exposure to cost pressure & budget uncertainty

12. What are we seeking to achieve?

13. What We Can Influence • The factors we use – only required to have an amount per pupil, a deprivation factor and to employ the MFG • How we use certain factors, where the regulations allow choice e.g. FSM / IDACI; EAL 1 / 2 / 3 • The values we assign to each of the factors i.e. how we choose to distribute the overall value of funding available • How we continue to provide support through centrally managed, de-delegated and contingency funds, within tight regulatory constraints • Our approach to mainstream SEN funding, within DfE national expectations

14. What We Cannot Influence • The use of the October census • That certain current formulae factors are no longer allowed by the regulations • The formulae behind each of the factors, in the vast majority of cases • That the value of the lump sum must be the same for both Primary & Secondary (max £200,000) • That certain existing centrally managed funds are no longer allowed • That certain contingencies currently held are no longer allowed • The value of the Pupil Premium in 2013/14 • The level of the MFG

15. Current Formulae • Based on a wholesale review conducted during 2003/04; implemented at April 2004 • “Activity” or “needs” led • Annually reviewed & adjusted by the Schools Forum • Additional wholesale deprivation & SEN funding review implemented in April 2005 e.g. introduction of IMD, uncoupling of SEN funding from Statements • Reviewed alongside the mainstreaming of standards funds at April 2011 • Forum has strengthened funding approaches for changing circumstances as these have arisen e.g. new to English migrants

16. Review Principles • To build on principles established in previous reviews • Overarching “fair and equitable allocation of DSG resources” • Replication of our current distribution, when looking at themes or averages of types of schools • Small vs. large • High deprivation vs. low deprivation • High ethnicity vs. low ethnicity • ‘Best fit’ where replication is not fully achievable, governed by: • Ringfencing of phase budgets • Ringfencing of funding by current factor & purpose • Adjustments where these minimise funding variances • Consideration of the anticipated impact of the new model

17. Impact - Themes • See handouts – scattergraphs showing overall per pupil profile x3 themes: size, deprivation & ethnicity • Prior to MFG & Ceiling • Impossible to address all individual school circumstances • Remember – protection against formula change via the MFG

18. Simplified Formulae (1) • 12 allowable factors, of which 11 apply to Bradford District • Key principle: factors need to “add value” • Proposing to use 9 of the 11 (including 2 deprivation factors): • Basic amount per pupil • Deprivation: Free School Meals • Deprivation: IDACI • Low Prior Attainment • English as an Additional Language • Pupil Mobility • Lump Sum • Split Sites • Rates • PFI

19. Simplified Formulae (2) • Means 2 factors not used: LAC & Post 16 • For the vast majority of factors there is no choice on how allocations are calculated; formulae are set by the DfE • Formulae are very different from those we use currently • ‘AWPU’ replaced by a base amount per pupil • Less allowance for ‘saturation’ within additional needs funding • No allowance in the calculation of FSM% for new to English migrants • No reference to levels of attainment in EAL data • Switch from KS1 to FSP results for Primary low attainment • No use of 3 year rolling averages

20. Simplified Formulae (3) • Formulae are shown in the consultation document • Simple • Calculated on %s based on the October census • Simplification is the main cause of variances • Appendix 4 – look at your allocation for each of the factors • Compare with your current S251 Budget Statement • Compare against the schools you choose to benchmark against • Note – safeguarded salaries & expanding schools / academies will be funded outside the formula in the future

21. Simplified Formulae (4) The Lump Sum: • Crucial factor in providing some budget stability • Main cause of variances in the Secondary formula • Regulations • Maximum value of £200,000 (to be reviewed for 2014/15) • Must be the same value for Primary & Secondary • Current ranges: • Primary £121,000 to £210,000 • Secondary £359,000 to £589,000 • Proposal to set at £175,000 • For Primary: strikes the right balance between providing for stability and not causing redistribution between small / large • Does not help smaller Secondary (but £200,000 doesn’t help either)

22. Simplified Formulae (5) Deprivation • Compulsory factor • Will continue to allocate deprivation & SEN formula funding • Proposal to continue to use 2 measures equally : FSM & IDACI • Proposal to use ‘Ever 6’ FSM (as per the Pupil Premium) • IDACI is not a significant change from IMD • Crucial in being able to recognise ‘saturation’; weighted model • Crucial in countering the redistributing effect of the FSM formulae • Careful to avoid ‘cliff edges’; incremental funding model • Weightings subject to review for the October 2012 dataset

23. Simplified Formulae (6) Other Key Factors • Low Prior Attainment • Primary: switch to FSP; choice on 73 or 78; proposal to use 73; concern over robustness; proposal to reduce the budget by £3.2m • Secondary: continued use of KS2, but now measured on pupils not achieving L3 in English AND Maths • EAL • Applies to all pupils regardless of attainment • Choice of EAL 1, EAL 2 or EAL 3; proposal to use EAL 3 • Allocates the former £500 new to English fund • Pupil Mobility • Proposal to increase the budget to support schools with higher levels of turbulence; recognition of the loss of central funds & the impact of other formula changes

24. Simplified Formulae (7) The October – January Reception uplift • Schools & academies that continue to admit significant numbers of pupils after the October census will see a permanent reduction in funding over time • The ‘Uplift’ applies to admissions into Reception classes only i.e. does not help where mobility affects all year groups • Retrospective adjustment based on the intake between October and January in the previous year; dataset provided by EFA • Must apply to all Primary schools & academies or not at all • Proposal to adopt the uplift for 2013/14 but to review for 2014/15

25. Funding Mainstream SEN • Much continuity - we moved to a delegated model in 2005/06 • Focus on establishing a clear continuum • Key proposals: • Continue to allocate the vast majority of SEN resources to schools via the SEN funding formulae (which have now changed) • Shift the ‘threshold’ for funding high value statements from £5,155 to £6,000 to replicate the national formula • Continue to allocate > £6,000 separately, based on actual value & adjusted on a monthly basis • Continue to employ the SEN Funding Floor to ensure a minimum level of SEN formula funding • Continue to calculate a notional SEN figure & to separately identify all SEN resources within a school’s budget (I03 funding)

26. National High Needs Model • National financial definition of High Needs > £10,000 pa • Funded in 3 elements: • Element 1: £4,000 – base formula funding that all children attract • Element 2: £6,000 – additional resources allocated to the school’s budget via SEN formulae • Element 3: value >£10,000 – top up paid directly by the commissioning local authority for the difference between £10,000 and the assessment of the total actual cost of provision

27. SEN Resources (I03) SEN Formula Funding + Specific funding for the values of Statements > £6,000 + SEN Funding Floor + Notional SEN

28. Notional SEN • A defined sum within a school’s base formula funding that is identified to support pupils with SEN • Currently 6% of AWPU • Proposal essentially to keep this level, but to reduce the % recognising that more funding is now allocated via the base per pupil amount • Primary reduced to 5.5%; Secondary reduced to 4.5% • This maintains the overall position, though there will be some differences for individual schools & academies • Note that I03 funding values will be greater due to the inclusion now of former mainstreamed grants funding (correct to do so)

29. New Delegation • DfE: maximum delegation to schools & academies • Greater proportion of DSG funding delegated to schools • Fewer centrally managed funds & contingencies • Continued allowance of specific named DSG funds • Proposals TBC but based on likely majority view & recognising the purposes for which funds are currently held • Further development of traded services • Elements: • Identifying the value of new delegation into school budgets • Being clear on the funds that will continue to be managed centrally & the contribution from schools to enable these • Being clear on what funds will no longer be available • Academies – this approach replaces DSG LACSEG

32. De-Delegated Items • Maintained schools only • Proposed: • Electrical Health & Safety Testing • Support for minority ethnic & underachieving groups • Licences / subscriptions • Maternity & Paternity costs • Trade union duties facilities time • Discretionary exceptions • FSM eligibility (education welfare) • Behaviour support services • Funded by reducing base per pupil funding

33. Central Funds No Longer Available • The following existing funds will no longer be available; the funding delegated to school & academy budgets: • DSG RCCO • Redundancies in schools • 14-19 confederations • Provision of school milk • Minibus driver assessments • Cost Pressures • Carbon reduction costs charged to school & academy budgets • No central fund planned for single status costs at this stage

34. Continued Contingencies • Can now only be held in specific circumstances • Proposed: • Ringfenced Growth Fund • Exceptional / Unforeseen Costs • Schools in Financial Difficulties • Safeguarded Salaries • Values to be agreed by Forum within phases • Criteria driven under Forum management • Limited access / limited adjustment of budgets in year • Funded by reducing base per pupil funding

35. Contingencies No Longer Available • Infant Class Sizes – exceptional circumstances only • £500 new to English new starters (EAL) • General schools contingency for data changes • Small school investigations – exceptional circumstances only • Looked After Children – replaced by the Pupil Premium

36. Funding Expanding Schools • Regulations allow a ringfenced ‘Growth Fund’ • Available to both maintained & academies; Primary & Secondary • Proposed to continue to fund • Permanently expanding schools • Bulge classes

37. Immediate Next Steps • Consultation closes 23 October • Pro-forma submitted to EFA by 31 October • Additional EYSFF & High Needs consultations • October 2012 dataset available December - review

38. Budget Timetable 2013/14 • Mid / late February 2013: publication of Primary & Secondary formula allocations for 2013/14 • no “indicative budget checking” for P & S formulae • First draft EYSFF allocation published at the same time • Mid / late March 2013 – publication of confirmed indicative EYSFF allocations • See BSO for a more detailed timetable