Agenda item

TY introduced the report which requested a steer from Forum Members about how to apply the funding formula.  He reported that:

1.      Due to tight timescales for submitting information to the ESFA in January, it was important to get an early steer on how to apply the funding formula.

2.      The issues requiring a steer were whether to transfer money to the High Needs block to support the Education Transformation Programme and if so, how much; the value of the minimum funding guarantee; what value to set on funding factors including a lump sum; whether to prioritise any sector and allocate any funding for growth fund. 

3.      The was no proposal for a falling rolls fund.

SE reported that the Finance Sub-Group had met and looked at these issues in detail and summarised the recommendations of the Group as follows:

1.      The pressure on the High Needs Block was recognised and it was agreed there should be a 0.5% transfer, however the Group requested evidence to see how the money had been spent in previous years and whether there had been an impact.  It was noted that this had been addressed by the update report considered earlier in the meeting.

2.      The Group had also discussed retaining the lump sum at the current level, the minimum funding guarantee and the allocation of spare funding.  The Group supported maintaining the MFG at 0.5% as if it was set too high, schools would get more protection if their deprivation levels dropped. 

3.      In terms of the allocation of spare funding and how best to allocate, it was noted that there was not one option that was best for all schools.  The Group supported more money going towards the deprivation factors and that option also benefitted the most schools. 

4.      The Group also had a discussion on the Growth Fund and had agreed that, where a school had come to an agreement with a local authority to expand and would be funded for a certain period to support this, it would be unfair to subsequently withdraw funding.

In response to a question about consultation with schools, TY confirmed there had been 37 responses as follows:

-          23 favoured the block transfer of 0.5% to the High Needs Block

-          36 supported the MFG set at 0.5%

-          31 preferred preserving the lump sum and supporting Additional Educational Needs (AEN);

-          18 supported favouring all sectors in the unit funding and 19 favoured supporting the primary sector.

Schools Forum members supported the proposals, subject to a final decision being made at the January meeting once funding levels had been confirmed by the EFSA.

AGREED:

1.      The changes in the formula methodology for 2022/23 be noted.

2.      The following proposed arrangements for 2022/23 be agreed in principle, subject to a final decision at the January meeting once the final figures had been confirmed:

a. transfer 0.5% to High Needs Block

b. set MFG at 0.5%

c. retain lump sum at current level

d. allocate any spare funding (after mandated items) to AEN

e. allocate £2m to Growth Fund

3.      The potential changes to the National Funding Formula for 2023/24 be noted.