Autumn Finance Groups Funding Update Ian Hamilton Schools & PVI

1. Autumn Finance GroupsFunding UpdateIan HamiltonSchools & PVI

2. Autumn Finance GroupsFunding UpdateChris ScottSchools & PVI

3. News • School Funding Reforms 2014/15 • Pupil Premium Changes • PE & Sport Grant • Year 7 Catch-up • Universal Free School Meals

4. Mandatory Changes to the Funding Formula • From 2014/15 the pupil led factors must distribute at least 80% of the schools block of the Dedicated Schools Grant (DSG) • Kent already distributes approximately 89% by this measure • There will be a new Post 16 representative on the School Funding Forum

5. Factor 1 – Basic Entitlement • From 2014/15 there will be a minimum rate of £2,000 for primary pupils and £3,000 for secondary pupils • The 2013/14 rates in Kent already exceed this threshold at £2,727, £3,788 and £4,157

6. Factor 3 – Looked After Children • Currently this factor can count pupils who have been looked after for 1 day, 6 months or 12 months • From 2014/15 the only permissible option will be 1 day • Kent has already implemented this factor using the 1 day measure

7. Factor 4 – Low Cost, High Incidence SEN • Primary • Pupils will now be counted if they either have a score of 78 and below OR a judgement of less than good • Unclear what impact this may have on the total count/rate • Secondary • Pupils will now be counted if they have achieved less than a level 4 at KS2 in EITHER Maths or English • This will significantly increase the number of pupils counted and will affect the rate each pupil attracts

8. Factor 6 – Lump Sum • Schools which amalgamate will receive 85% of the two previous lump sums until the end of the financial year after the one in which they amalgamate

9. Discretionary Changes to the Funding Formula • The DFE has announced two new optional factors and changed the rules for the Lump Sum and Mobility Factors

10. Factor 6 – Lump Sum • The DfE have removed the requirement that the Lump Sum is the same for both Primary and Secondary schools • Analysis of the modelling completed for Kent supports the current rate of £120k for all schools and so this freedom will not be exercised • The maximum permissible Lump Sum has been reduced to £175k • Still substantially more than the level set in Kent

11. Mobility • There is an optional Mobility factor • Measured by counting in year admissions • Last year it was decided not to use this factor and there is no intention to introduce it in 2014/15 in Kent • However whereas all schools could previously be funded for any level of mobility, in 2014/15 at least 10% of the school pupils would have to be considered mobile before funding could be provided

12. Sparsity Factor • The DfE have created an optional Sparsity Factor • Schools which meet the criteria are deemed ‘necessary small schools’ and can then attract funding • Primary schools must have less than 150 pupils and secondary schools less than 600 pupils • Primary schools must have a sparsity distance of greater than 2 miles secondary schools greater than 3 miles • Sparsity distance is the mean distance that the pupils for whom this is their closest school would have to travel to the next nearest school

13. Sparsity Factor • This factor will not be included in the Kent formula • Few of the many small schools in Kent actually meet the criteria • The schools that do meet the criteria generally benefitted already from the new formula so it is questioned whether this is needed in Kent • Could be considered arbitrary and unfair

14. Schools with Falling Rolls / Spare Capacity • The DfE have allowed authorities to set aside a ‘small budget’ for schools in a very specific set of circumstances • The school must be below capacity in a situation where there is evidence that the capacity will be needed within the medium term to meet rising demand • The school must be rated as Good or Outstanding by OFSTED • The school could then receive funding for the empty capacity

15. Schools with Falling Rolls / Spare Capacity • This will not be implemented in Kent • Difficult to measure whether or not there is evidence that the capacity will be needed or when • Difficult to measure how much empty capacity becomes a budgetary issue for the school • Requirement to be Good or Outstanding will exclude many of the schools in this situation

16. Pupil Premium - Deprivation • There has been an announcement that the primary ever 6 rate will increase to £1300 • A separate announcement suggested that the secondary rate would be £935 • These rates have not yet been documented • There has been no explanation of the rationale for introducing separate rates

17. Pupil Premium – Looked After Children • Government has announced a £1000 increase in the Pupil Premium for LAC • Now anticipate a rate of £1900 in 2014/15 • It is possible that we may move to fund this using three counts per year rather than the current one

18. Year 7 Catch Up Premium • We have received a number of queries about this but have no information at this time

19. PE & Sport Grant • Allocations and Conditions of Grant are both on Kent Trust Web • Lump Sum element has been calculated incorrectly, DFE advises that this will be corrected but we don’t know when • Some questions over pupil numbers which we are trying to resolve

20. PE& Sport Grant • Should be £8,000 plus £5 per eligible pupil • 65% now then 35% in next financial year as Additional Grant for Schools uses school year not financial year • Is ring fenced for Sport provision • Schools must report on their website what their allocation is and how it is being spent

21. Universal Free School Meals • Government has announced intention to provide free school meals for all KS1 pupils • There has been no detailed announcement about how this will be funded • Some issues which could arise are: • Kitchen capacity • Identifying FSM as defined for Pupil Premium • Lack of time to prepare