“ Fairer” Funding – A Strategy for WAG?

1. “Fairer” Funding – A Strategy for WAG? Alistair ThomasParent GovernorLindridge CE Primary School

2. “Fairer” Funding – A Strategy for WAG? • Where funds come from today • Flawed new formula redefines fairness • Final 2013/14 allocation gives false hope • Can WAG win for Worcs where others have failed? • Help Schools respond to DfE Review • Help Schools engage with WCC spring Consultation Wednesday, 21 March 2013

3. Where Funds Come From Today • Designated Schools Grant (DSG) + Standards Fund = school funding until 2011 • DSG makes up 87% of current funding, historically heavily biased to urban centres • Standards fund covers many things – Even less evenly distributed than DSG • Current Government mainstreamed Standards Fund into DSG until after 2015 • Deprivation was funded twice in the DSG and again in parts of the Standards Fund Wednesday, 21 March 2013

4. The Designated Schools Grant (DSG) • Prior to 2006, education spending was not ring fenced • The Education Formula School Share (EFSS) guided LAs on what they should spend • DSG captured EFSS spending levels in 2006 • LAs funding above EFSS had that advantage cemented • LAs funding below EFSS had top-ups to EFSS level over three years • Original AEN/SEN funding was wrapped up in DSG • DSG showed heavy bias towards urban centres from the outset • By 2010, Birmingham received 19% or £762 more / pupil than Worcs Where Funds Come From Today

5. The Standards Fund • Standards Fund at £4.85 billion makes up 13% of overall funding • It covers 15 areas including SSG, SDG, School lunches, EMAG, Extended Schools, National Strategies + more • Even national strategies in Primary / Secondary Learning or for school lunches, extended schools and 1-2-1 tuition are loaded in favour of urban centres • The inequity of the Standards Fund is so marked that Birmingham receives 57% more / pupil than Worcs • The combined inequity of the DSG and the Standards Fund gives Birmingham 23.7% or £1038 more / pupil than Worcs Where Funds Come From Today

6. Mainstreaming of Grants in 2011 • Mainstreaming funds for schools to spend as local needs dictate is sound • Freezing the embedded unfairness from 2010-11 for 4 more years was a huge mistake • Head Teacher / Governor judgement now trumps Ministerial Priorities • Fund distribution logic that accompanied Ministerial Priorities is no longer relevant and cannot be justified Where Funds Come From Today

7. Flawed New Formula Redefines Fairness • 87% of Primaries need MFG protection or capping, 60% experience over 5% change • Two main categories of loser under flawed formula • Rural schools • Schools that were highly favoured under current local allocation • New formula is deficient lacking a rural factor • New formula is simplistic in some other regards (lump sum, KS1 AWPU etc.) • Formula Factors + Pupil Premium = Double funding • Greater simplicity and transparency are worthy principles Thursday, 28 February 2013

8. Final 2013/14 Allocation Gives False Hope • AWPUs increased dramatically from October • Nominal Worcs budget is £27M bigger than it is in reality • Only MFG capping (0.75% per pupil) keeps the budget in check • Clever trick buys time for 2013/14 • Schools must face reality when MFG unwinds and factors have to comply with real budget • The formula is still flawed • It must be fixed in time for 2014/15 allocation Thursday, 28 February 2013

9. Can WAG Win Where others have failed? • The DfE has turned a deaf ear to WCC demands for a phase specific lump sum • Both DfE and f40 have been told there is no new money for low funded LAs • WAG can push for a strategy as yet untried: • Fix the formula • Redistribute some national funding now • Explore national funding solutions virtually, now Thursday, 28 February 2013

10. Fix the formula • LA requests for more money, more flexibility won’t fly • DfE arguments are pricipled and formulaic • Applying the formula to national allocations suggests the need for national & local Factors • National: Deprivation, EAL, SEN etc • Local: Lump sum, AWPUs • Two types of loser with flawed formula: Rural schools, highly favoured schools under old system • Need a working party to research / formulate proposals for change • A rural factor • Some factors to be retrieved due to over simplification Winning Strategy for WAG

11. Redistribute Some National Funds Now • Fair distribution of the Standards Fund could make a big difference for low funded LAs • Not significant enough to cause chaos in well funded LAs • Significant enough to bring all LAs into the debate • Worcs should expect £8.3M extra from fair distribution of this fund • Lobby Worcs representatives to get behind this • Lobby DfE / Ministers to adopt this • The current unfairness is so marked that media exposure might force the Government’s hand Winning Strategy for WAG

12. Explore Virtual National Solutions Now • Even the flawed formula has enough substance to try shadow allocations of national funds • DSG can’t be touched until after 2015, but if we don’t start research now, solutions will be even later Winning Strategy for WAG

13. Help schools with DfE Review • Detailed comments on DfE guidance • Proposed WAG response to DfE Questionnaire • WCC and f40 responses • Show school colleagues different perspectives, help answer questions Thursday, 28 February 2013

14. Help schools with WCC consultation • Ask for real 2013/14 allocation • Ask for old system version with 2013/14 data for comparison • Push for modelling of formula modifications • Etc … Thursday, 28 February 2013

15. Questions Thursday, 28 February 2013

16. Glossary • HNP – Higher Needs Pupils • IDACI – Income Deprivation Affecting Children Index • LA – Local Authority • LACSEG – Local Authority Central Spend Equivalent Grant • MFG – Minimum Funding Guarantee • NGA – National Governors’ Assoc. • NOR – Nominal On Roll • SEN – Special Educational Needs • SSG – School Standards Grant • SDG – School Development Grant • WAG – Worcs Assoc. of Governors • WCC – Worcs County Council • WSF – Worcs Schools Forum • ACA – Area Cost Adjustment • AEN – Additional Educational Needs • AWPU – Age weighted Pupil Unit • DfE – Department for Education • DSG – Designated Schools Grant • EAL – English as an Additional Language • EFSS – Education Formula School Share • EMAG – Ethnical Minority Achievement Grant • EYFSP – Early Years Foundation Stage Profile • F40 – Group of 40 lowest funded LAs • FSM – Free School Meals • GUF – Guaranteed Unit of Funding Thursday, 28 February 2013

17. Conspiracy Theories Abound • Many Heads worry that adverse affect on small rural schools is deliberate • So many small schools affected it can’t just be by chance • Pressure to federate or join multi-academy trusts is increasing • DfE argues that a large lump sum protects small schools providing for up to 70 pupils • WCC level of lump sum is the smallest in the country • Makes no sense for a political party to undermine education chances in areas where its support is strongest • Minister assures us that no good/outstanding schools will be forced to close due to the changes • Could facilitating the opening of new Free Schools in any area be the hidden agenda with lump sum nonsense? Flawed New Formula Redefines Fairness

18. New Small Free Schools Hidden Agenda • A lump sum protects small schools regardless of economics • It applies to urban areas just as much as rural areas • A new Free School gets funding for up to 64 pupils before the first pupil even crosses the threshold • The funding advantage lasts until the breakeven point at about 210 pupils • Local lump sum means new schools funded at expense of existing ones • Sparsity only applies to rural areas, thwarting government plans Chart data is based upon 171 Worcs Primary Schools, 35,756 pupils and original lump sum of £42,000 – Oct 2012 Flawed New Formula Redefines Fairness