National Children’s Commissioning and Contracting Conference.

1. National Children’s Commissioning and Contracting Conference. Innovation through Austerity? Implementation of the new National Funding Formula. Lessons learnt. Annette Jones and Jackie Ong, SEN team Bristol City Council

2. Why a National funding formula? • To move towards a fairer funding system by redistributing existing funding • To allow parents to express a preference of school irrespective of funding costs, or designation • To align the pre and post 16 systems in preparation for wider DfE changes under the Children and Families Bill. eg.EHCP’s,0-25 system, personalised budgets • To improve outcomes for yp • To show vfm on use of the “ public purse” • This is the most highly audited budget of ALL councils spend

3. What is the National funding formula ? The DfE introduced a requirement for all LA’s to implement a New National funding formula (NFF) from April 2013. A pupil led funding system by changing the way ALL schools and Education providers are funded through the Dedicated Schools Grant (DSG) via agreements with the Schools forum for the use of the High Needs Block. We move towards a National system by 2015.

4. Who does it apply to ? • All state funded Mainstream schools, Academies and Free schools • All maintained specialist provision including resource bases • All alternative education providers and PRU’s • All non maintained special schools (NMSS) • All colleges of FE • All specialist FE colleges (ISP’s) • By 2015 all INM schools • ALL JOINT/ POOLED BUDGET PLACEMENTS

5. So what …does this mean for commissioners ? A pupil led funding system that follows the young person • All commissioning arrangements related contracts will change to become child centred • Will align 0-25, with all transitions being pivotal • Will be outcomes based • Will generate new markets through strategetically commissioned services with CCG’s and others • Will be flexible, responsive and Vfm

6. So what’s ….this have to do with placements? All LA’s are required to have a Schools Forum under the “Schools Finance and Early Years Regulations” The Schools Forum has representatives of each sector, and the LA must consult them. The schools forum have discretion over all systems and allocations for all placements- including joint funded or pooled arrangements.

7. Activity • Do you know how the funding scheme works? • How do you breakdown costs? • How do you compare your first 10K to other providers? • How are you going to comply with LA’s top up costs? • How do you measure against outcomes currently Progress and outcomes ? • How do you show measurable progress? • Could it be better?

8. How does it work ? It’s a place Plus scheme. Each setting has a “place “ amount per pupil, either notional or set. Pupils needs then direct the additional funding Bristol introduced such a delegated scheme in 2009, and so have had 3 years of learning from this which we have brought to the new National scheme

9. Bristol City Council -Our Context • Bristol is an urban LA in a predominantly rural region • Nearly 2000 statements with additionally 1200 plus funded • Annual pre NFF budget of £ 25 M • Rapidly increasing population ICOCo suggests 7.8% to 2017 • Academies, free schools, maintained mainstream and special, independents, UTC. • Increasing demand for local specialist placements

10. Why delegate funding ? Principles • Fast, responsive early intervention to meet individual needs • More control and autonomy for Schools to support workforce development to meet their cohorts • Reduction in bureaucracy for Schools and Parents • Most needs could be met from within existing school funding

11. What did we learn from our delegated scheme- SAPE • 63 % immediate reduction in requests for statutory assessments ( £5+k nearly £1M saved from DSG and central services ) • Schools and parents sought clarity in what “ was ordinarily provided “ ( aka early “local offer”) • Parental confidence was key to a quality assured system • Schools ,providers and parents confused the statutory legislation with funding, needs, objectives, provisions, outcomes • Goods schools managed • Top ups panels caused more workload for the LA and budget is “ volatile” • It took 3 years to “learn”

12. Lessons learnt for NFF implementation. • Top-ups via costed provision maps • BUD’s ( Bristol Universal Descriptors) across all settings 0-25 by 2014 • Integrated decision making with schools = transparent • Specialist QA on school based interventions = high parental confidence • Provided clarity on place element provision = early local offer • Ongoing interim support from LA financial teams

13. Universal Banding for High Needs Pre 16 Post 16 MAINSTREAM SPECIALIST ALL SETTINGS • Element 1 • + • Element 2 • Core funding AWPU + Notional SEN DfE -£10,000 p.a. Base Funding of £10,000 allocated on planned places for Special schools, NMSS, RB’s DfE =AEP, PRU, £ 8,000 Programme Costs + Notional SEN DfE= £10,000 p.a. Element 3: High Needs Block BANDs 1 – 6: £2,500 - £35,000 7: >50,000 In addition: School based supplements: allocated per pupil PFI; Hydropool; Residential; Hostel Split Site; Extended Day

14. “Plus “ Where children have needs that require provision to be made above the place cost additional funds to support this are required , this is the “Plus “ • Is called “Top Up” • Is pupil led, and follows the child • Is allocated on a daily basis • Is banded into 7 universal bands ,based on the Bristol Universal Descriptors (BuD’S) • Can be applied for twice a year • Can be allocated for up to 3 years

15. Bristol Universal Descriptors (BuD’s) • Based on 7 universal banding levels, with a single cost per level across all settings…Universal. • Describe the provision needed to meet pupils needs on a “ best fit” basis ….“ pupil typically has ….” • Have been taken from old LMSS bandings, SAPE and Top Up descriptors, existing statements • Are relevant for 2013-15 ARE A WORK IN PROGRESS WILL TAKE 5 YEARS TO EMBED ( 2018)

16. Children in Care All Children in Care are funded by their “home “ LA, and recoupment applies- the Belongings regulations continue to apply For 2013 a LAC factor was “ optional “ in the schools block element ( 1/2) , in 2014-15 this will be mandatory CIC are eligible for pupil premium based on original home address under the “Ever 6”,and post 16 bursary fund to meet further educational needs AS WELL as access to all other School funding streams .

17. What about the future……all change … • Legislation via the Children and Families Bill • By September 2014 a New Code of Practice for SEND • Optional personalised budgets • Duty on Health and CCG’s • Effective person centred flexible joint commissioning • Increased parental and young person choice • The Local Offer -increased integration of all systems, services and providers.