School Budget Update 201718 From the School Budget

School Budget Update 2017/18 From the School Budget and Private Voluntary Independent (PVI) Team 1

Introduction Two sections: • Update Schools Funding for 2017 -18 • Update on Schools National Funding Formula (SNFF) consultation 2

Guidance • School Budgets were issued on Tuesday 28 February • The following documents have been generated: – E-bulletin 28 February Patrick Leeson – providing an overview of the funding headlines for 2017 -18 – Delegated Funding Guidance – detailed guidance on the changes for 2017 -18 (published on KELSI) – Primary and Secondary School Funding Guidance 2017 -18 - detailed guidance (currently being updated and will be published on KELSI) – Funding Templates (published on KELSI) – Guidance how to complete Templates (published on KELSI) • Please read 3

Section 1 - Update on Schools Funding for 2017 -18 • Seventh consecutive year of DSG flat cash per pupil, this means no funding for inflationary pressures • Will explain under national funding formula what is happening in future years • Un-funded pressures include: Apprenticeship Levy, Teachers pay award and Support Staff pay award – around 2% overall pressure • Minimum Funding Guarantee (MFG) set at -1. 5%, set at the same rate since 2011 -12 4

Schools update continued Apprenticeship Levy- overview • • For the purpose of calculating the Apprenticeship Levy there are two categories of schools: Community (Com) and Voluntary Controlled (VC) schools - the employer is considered to be the local authority and so for the purpose of the Levy calculation the schools are included. This means any school in this category will be liable to pay the levy, regardless of whether they use the Council for payroll services Voluntary Aided (VA), Foundation and Academy (incl. MAT’s) schools – the employer is considered to be the governing body and so they must assess the size of their pay bill and act accordingly • 0. 5% increase on salary bill, £ 3 m threshold and £ 15, 000 exemption • E-bulletin 10 th January • For further advice about the budget and paying the levy please contact the Business Manager Schools Financial Services Siobhan. Cheeseman@kent. gov. uk • For advice and support in employing and training an apprentice please contact Sue. Dunn@kent. gov. uk, Head of Skills and Employability 5

Schools update continued Mainstream High Needs - Funding Pressure • Significant increase in the number of primary aged pupils claiming High Needs funding • Spend 2015 -16 = £ 14 m, estimated spend 2016 -17 £ 23 m • Budget £ 18 m, an overspend of £ 5 m • At SFF meeting on the 9 th December, it was agreed to transfer £ 5 m from the Schools Block to the High Needs Block • The £ 5 m pressure will be funded by reducing the Primary School low prior attainment factor by £ 178. 27 per pupil 6

Schools update continued Mainstream High Needs - Funding Pressure continued • Also agreed on the 9 th December was to reduce notional SEN budget by £ 1. 8 m for future high needs pressures • No school will pay more than 3% of its notional SEN budget towards the first £ 6, 000 has now increased to 10% • Schools receiving notional SEN funding of up to £ 200, 000 were getting some notional SEN top up in 2016 -17 • Now only schools receiving notional SEN funding of up to £ 60, 000 will receive some notional SEN top • Second threshold where schools will not pay more than 20% of notional SEN funding towards the £ 6, 000 has increased to 28% 7

Schools update continued Change to Factor 2 - Income Deprivation Affecting Children's Index (IDACI) • In 2016 -17 the IDACI dataset was updated– cost to Kent’s MFG was £ 2 m • Education Funding Agency (EFA) nationally acknowledged level of turbulence and adjusted the number of children in each band to better reflect the distribution of 201516 • This change would have cost Kent a further £ 1. 5 m in 2017 -18 • We have adjusted rates to reflect the redistribution of children, so that overall funding level is similar to 2016 -17 – no additional cost • Point to note – EFA have changed description of bands, band 1, now band F, band 2 now band E and so on 8

Schools update continued Primary Phase adjustment to Low Cost High Incidence SEN (LCHIS) funding rate, formula factor 6 Primary rate reduced from £ 729. 11 to £ 530. 52 per pupil. Transfer in funding from Schools Block to High Needs block to fund pressure for additional Mainstream HNPs - £ 178. 27 Foundation Stage Profile – Change in profile • As judgements replace scores one year group at a time, the percentage of primary pupils qualifying for Factor 6 continues to increase. • A judgement of ‘Failing to achieve a good level of development’ (Yr groups 1, 2 3 and 4) or a score of less than 78 (Yr groups 5 and 6) qualifies. More pupils qualify under the new judgement than the score of 78. • A reduction in the rate of £ 20. 32 (£ 550. 84 to £ 530. 52) has been made in order to maintain the same level of funding overall. 9

Schools update continued Pupil Growth Funding • Must be a basic need school – The Df. E define Basic Need as new pupil places which are requested by the LA because there are insufficient places available for pupils in the area. Area Education Officers (AEOs) determine if schools meet eligibility for the Df. E basic need criteria. • Two strands – Reorganisation Funding and Rising Roll (RR). • If you are entitled to Reorganisation Funding you will receive an email early in March confirming entitlement and amount. • If you are entitled to RR it will be shown on the growth tab on the template. 10

Schools update continued Pupil Premium Same rates as 2017 -18 : • Ever 6 Free School meal (E 6 FSM) – Primary £ 1, 320 and Secondary £ 935 • Ever 6 Service Children (E 6 SC) - £ 300 • Post Looked After Children (PLAC) - £ 1, 900 • Based on January count, indicative budgets for E 6 FSM and E 6 SC (April to June) - adjustment in July 11

Schools update continued Pupil Premium- continued • The Virtual Schools Kent (VSK) will be publishing further guidance in due course and it is our understanding that this information will be published on their website • However based on the information supplied by the VSK Headteacher, an allocation of £ 900 per eligible pupil will be paid to schools in 3 instalments of £ 300 each. In addition to this, schools can bid for additional amounts based on evidenced levels of need • Remember- can only get a maximum of E 6 SC + one of the following Ci. C, PLAC and E 6 FSM • Remember- adjustment in January - where a E 6 FSM is subsequently identified as Ci. C 12

Schools update continued Universal Infant Free School Meals (UIFSM) • Academic year 2016 -17 is the third year of UIFSMs. The Education Funding Agency (EFA) has confirmed that this grant will continue until the end of this Parliament; however currently no funding guidance has been issued for the academic year 201718. • On the bases that the underlying methodology for calculating the grant will continue, we are advising schools to base future funding forecasts on the underlying calculation for 2016 -17 and adjusting for change in eligible pupil numbers. Devolved Capital Formula (DCF) • We have published indicative DFC budgets for 2017 -18 that are based on the January 2016 census and the current years funding rates. Final allocations will be confirmed in March, although we are not expecting any material changes. 13

Schools update continued Year 7 Catch Up 2016 -17 • 2016 -17 allocation now on KELSI, paid in full March advance • Conditions of grant published on KELSI Primary PE and Sport Premium Grant • Schools received their funding for the period September 2016 to March 2017 in November 2016. The final payment for the period April 2017 to August 2017 will be made to schools in May 2017 • The Df. E has committed to continue to fund the Primary PE and Sport premium at £ 150 m a year until 2020. Details of the 2017 -18 academic year allocations and grant conditions have not been published and we are not expecting them until October 2017. . 14

Schools update continued Early Years 3 & 4 Year Old Free Entitlement • There was an Early Years National Funding Formula consultation in 2016 -17 • The proposed outcome for 2017 -18 will be ratified shortly • There are two changes that maintained providers need to be aware of, all else has remained the same • Base rate will increase from £ 3. 91 to £ 3. 96 from September 2017 (dependent of ratification) • The 30 hour free entitlement will come into effect from September 2017 15

Section 2 - Proposed New Schools National Funding Formula (SNFF) • The SNFF consultation closes on the 22 March – so changes could still be made, not set in stone • E-bulletin circulated to schools 24 January: - Includes an overview of the proposed changes - Link to individual school calculation provided by Education Funding Agency – based on 2016 -17 budgets - Link to consultation documents - Schools encouraged to respond to consultation - Joint response LA and SFF- broadly the same 16

SNFF continued What is the new SNFF ? • It is a national redistribution, no additional funding • It is called a Hard SNFF • It has 9 factors which are applied to all schools in the country • The funding rates for the factors will be the same for all schools in the country 17

SNFF continued • Proposed factors and funding rates for the proposed new national funding formula. 18

SNFF continued Winners and Losers in Kent % movement Selective schools 19

SNFF continued • In total, Kent schools are set to gain £ 29. 5 m (+3. 6%) when the NFF is fully implemented • Some of our schools are gaining 10%+ • But 140+ schools are set to lose 20

SNFF continued • Generally speaking. . . • Schools in deprived areas gain • Schools who have high numbers of pupils with low prior attainment gain • Secondary non-selective schools will see the largest gains • Secondary selective schools will only see small gains • Small primary schools lose 21

SNFF continued - Implementation • 2017 -18 - no change to methodology • Funding given to LAs (Pupil No x LA rate per pupil) • LAs operates local formula • LA can move funding between blocks (with Forum permission) • 2018 -19 - Soft NFF • • • LA total is aggregate of NFF for each school Transitional movement in funding Kent will get £ 12. 7 m of the overall £ 29. 5 m Schools who gain – capped at 3% Schools who lose - MFG -1. 5% LA operates local formula 22

SNFF continued- implementation • 2018 -19 = Soft NFF continued • Greater restrictions on moving funding between blocks • 2019 -20 = Hard NFF • • • EFA operates national formula Schools who gain – capped at 2. 5% (maximum overall increase 5. 5%) Schools who lose – MFG -1. 5% and Floor -3% 100% of schools block goes to schools No LA discretion (except possibly rates, PFI, Split sites, exceptional premises factors) 23

What happens next LA and SFF response to consultation- main points: • It is good that overall Kent schools have benefitted from the funding reforms (£ 29. 5 m) However: • National rates are based on current spending averages rather than an evidenced/needs led basis – All schools should have basic amount to deliver curriculum • A new floor to limit the reduction to -3% per pupil Some schools therefore protected on historic funding levels for many years - Does not achieve main objective of SNFF – FAIRNESS • The SNFF needs to recognise there have been so many years of flat cash and more funding needs to be put in to school funding • Restriction on moving funding between blocks • Schools are encouraged to respond to the consultation 24

Forecasting DSG income 2018 -19 and 2019 -20 MFG 2018 -19 – template options -1. 5% to 3% Options -1. 5% to 0% - same criteria as last year Options 0. 5% to 3% - may adjust when we know more about outcome of national funding formula. MFG 2019 -20 – template options -1. 5% to 5. 5% Options -1. 5% to 0% - same criteria as last year Options 0. 5% to 5. 5% - may adjust when we know more about outcome of national funding formula 25