SCHOOL FUNDING BRIEFING

1. SCHOOL FUNDINGBRIEFING Funding Settlement Devolved Nations Reform In England Arrangements and Changes for 2014-15 Proposals for 2015-16 High Needs, Pupil Premium and UIFSM Post 16 The way ahead for NASUWT School Funding Reform

2. SCHOOL FUNDING SETTLEMENT FOR ENGLAND FOR 2014/15 April2014 • Details of the local authority DSG allocations • Continued to be based on the current “spend-plus” methodology for 2014-15 • Three spending blocks for each authority • an early years block • a schools block • high needs block • Flat cash per pupil for 2014-15 • No authority loses more than 2% of its budget in cash terms • Minimum Funding Guarantee that ensures that no school sees more than a 1.5% per pupil reduction in 2014-15 budgets • Excludes sixth form funding and Pupil Premium School Funding Reform

3. DEVOLVED NATIONS April 2014 School Funding Reform

4. SCHOOL FUNDING FOR WALES April2014 • Welsh Government pledge to increase school budgets by 1% above the rate of change of the overall Wales block grant. • Gross schools expenditure of £2,518 million for 2013/14 • Increase of 0.9% over the previous year • Gross schools expenditure per pupil average £5,592 • Increase of 1.3% or £72. • £4,601 per pupil delegated to schools • £992 per pupil retained for centrally funded school services, • Significant variations between local authorities • Local authorities delegate between 78% and 85% to schools • Welsh Government expectation is for delegation to rise to 85% • Only Merthyr Tydfil local authority met this target • Pupil Deprivation Grant in 2013/2014 to £36.78 million School Funding Reform

5. SCHOOL FUNDING FOR WALES 2014-15 April2014 • Welsh Local Government Settlement 2014-15 • £4,260 billion • Down from £4,413 billion • 3.5% cut • Education and schools budgets now being set • Ensure 1% promise kept • Serious job loss School Funding Reform

6. SCHOOL FUNDING FOR SCOTLAND April2014 • Scottish Government £30 billion budget • Local authorities allocated budget from Government • Provisionally agreed for a three year settlement at each Spending Review • Provides more certainty and stability for local authorities • Total Revenue • £9,766 million 2013-14 • £9,848 million 2014-15 • £9,800 million 2015-16 * *Provisional on setting of Council Tax School Funding Reform

7. SCHOOL FUNDING FOR SCOTLAND April2014 • Year on year cut led to reductions in school staffing and resources • Cutting of administrative and support staff • Restructing secondary provision • Removal of subject principle teachers replaced by faculty heads • Local authorities issuing HR1 forms School Funding Reform

8. SCHOOL FUNDING FOR SCOTLAND April2014 • £61 million increase in college funding • College budget • £522 million for 2014-15 • £526 million for 2015-16 • Prioritised investment • Early Years • £55m over two years to expand provision of free school meals • Increase in numbers learning, speaking and using Gaelic • School infrastructure • Schools for the future • £1.25 billion • 67 new schools School Funding Reform

9. SCHOOL FUNDING FOR NORTHERN IRELAND April2014 • Aggregated Schools Budget (ASB) of £1.1billion • Common Funding Scheme (CFS) • Changes to the formula • Additional £15.8 million • Core principle • Break the link between social deprivation and educational outcome • Those schools with higher levels of social deprivation require more resources to tackle those challenges. • More money from the ASB going to schools with higher levels of social deprivation. School Funding Reform

10. SCHOOL FUNDING FOR NORTHERN IRELAND 2014/15 April2014 • 13 March all grant-aided schools informed of budgets • Final decisions on changes to the CFS • Money directly delegated to schools to rise by £26.5 million • Two discrete funding streams within the formula • one for primary and nursery • one for post-primary. • Funding under the ‘Warnock’ factor • One-third redirected to primary schools’ core budgets, • Balance to tackling disadvantage. • Transitional payments for schools whose budget is less than would have received. • Only 2.5% of schools will require a transitional payment in excess of £5,000. School Funding Reform

11. SCHOOL FUNDING FOR NORTHERN IRELAND April2014 • £3 million investment in 20 new Nurture Units • £134 million School Enhancement Programme • 51 school enhancement projects • Refurbishment or extension of school buildings • £11.5million investment in 150 new school buses School Funding Reform

12. ENGLAND FUNDING ARRANGEMENTS April 2014 School Funding Reform

13. SIMPLIFICATION OF ENGLAND FUNDING ARRANGEMENTS • Process in 2012 to reform the school funding system, so that it is: • fairer • more consistent • transparent • Funding intended for education reaches schools and the pupils that need it most • Move towards National (Fair) Funding Formula • Consultation on ‘Fairer schools funding in 2015-16’ • Additional £350m for schools block School Funding Reform

14. FUNDING ASSUMPTIONS • Delegated to schools in the first instance • More delegation to schools than in the past • Contingencies can be retained centrally but limited range of circumstances • Seven exceptions School Funding Reform

15. SCHOOLS FORUM ‘DE-DELEGATION’ • Administration of free school meals eligibility; • Insurance; • Licenses or subscriptions; • Staff costs or supply cover (trade union facilities/civic duties long term supply); • Support for minority ethnic pupils or underachieving pupils; • Behaviour support services; and • Library and museum services. School Funding Reform

16. DE-DELEGATION OF FACILITY TIME 152 local authorities 122 responses to NASUWT survey 56 responded to de-delegation question 46 known to de-delegate (82.1%) Joint trade union group Letters to LAs, schools and academies Academies pot Many Academies not contributing Some LAs not allowing Academies to pay in April2014 School Funding Reform

17. PUPIL-LED FUNDING • All local authority areas in 2014-15 • Minimum of 80% of delegated schools block funding is allocated through pupil-led factors. • Age Weighted Pupil Unit (AWPU) † • Deprivation † • Prior attainment • Looked after children (LAC), and • English as an additional language (EAL). († Mandatory factor) School Funding Reform

18. MANDATORY FACTORS • A single per pupil amount (for primary, KS3 and KS4) • Require all local authorities to set an AWPU rate: • at least £2,000 for primary • at least £3,000 for KS3 and KS4. • Deprivation* (* No change from last year) School Funding Reform

19. OPTIONAL FACTORS • Looked after children • SEN / prior attainment • English as an additional language* (EAL) • Pupil mobility • Post-16 provision* • Lump sum • Sparsity (new) • Split sites* • Rates* • PFI* • London fringe* (* No change from last year) School Funding Reform

20. LOOKED AFTER CHILDREN • Pupils who were being looked after on 31st March 2013 • Regardless of how long they had been looked after i.e. one day • In 2013-14 local authorities had a choice of whether to apply the factor to those who had been looked after for at least a day, at least six months or at least 12 months. School Funding Reform

21. PRIOR ATTAINMENT AND PUPIL MOBILITY • Data from the new early years foundation stage profile used in deciding whether a pupil attracts prior attainment funding. • Pupils who did not achieve level 4 in mathematics OR English to attract prior attainment funding. • Mobility applies where more than 10% of pupils in a school are mobile. • For 2013-14 the factors applied where a school had any number of mobile pupils. School Funding Reform

22. LUMP SUM FUNDING • Local authorities to set a lump sum of up to £175,000 and set a different lump sum for primary and secondary schools. • For 2013-14 the lump sum limit was £200,000 and had to be the same for primary and secondary schools. School Funding Reform

23. SPARSITY • A fixed or variable amount may be applied to small schools • Average distance to pupils’ second nearest school is more than • 2 miles (primary) • 3 miles (secondary). • The maximum value for the sparsity factor is £100,000 per school • Either as a lump sum to all schools or a tapered amount related to school size. School Funding Reform

24. MERGING SCHOOLS WITH FALLING ROLLS • Local authorities to retain a falling rolls fund for good or outstanding schools (including academies) if the schools’ capacity is likely to be needed within the next three years to meet rising pupil numbers • Where two or more schools merge in 2013-14, the local authority should pay the merged school a lump sum equal to 85% of the two lump sums that the schools would have received in 2014-15 if they had not merged School Funding Reform

25. OTHER CHANGES • Local authorities make initial determination of 2014-15 schools budget, and informing schools of budget shares moves from 15th March to 28th February. • Local authorities put unspent money from the 2013-14 growth and infant class size funds into the 2014-15 individual schools budget, so that it is recycled to schools. • Local authorities to carry over to 2014-15 unspent de-delegated central expenditure to be used for the same purpose as it was used in 2013-14. School Funding Reform

26. MINIMUM FUNDING GUARANTEE • Protect per pupil funding for schools one year to the next against significant changes • Continue in 2014-15 to operate an MFG set at the same level as for 2013-14 - minus 1.5% • Continue to exclude from MFG calculation : • lump sum; • post-16 funding; • allocations from the High Needs Block, including those for named pupils with SEN; • allocations made through the early years single funding formula; • rates. School Funding Reform

27. HIGH NEEDS FUNDING April 2014 School Funding Reform

28. HIGH NEEDS FUNDING • Place-led funding • Number and distribution of places in the system reflects need and provides financial stability for institutions • Does not require a named individual for a place to be confirmed • Based on the outcome of LA place reviews • Top-up funding • LAs to use high needs budget to meet the individual needs • Over and above the funding provided to institutions through place-led funding School Funding Reform

29. HIGH NEEDS FUNDING • Funding for SEN pupils in primary and secondary school budgets calculated with reference to a threshold of £6,000. • Schools are expected to meet the costs of the additional support required by pupils with SEN up to that cost threshold • Special schools receive flat rate £10,000 for all their places, including students aged 16-19 School Funding Reform

30. PUPIL PREMIUM AND UIFSM April 2014 School Funding Reform

31. PUPIL PREMIUM 2013/14 • Eligible for the pupil premium funding if registered for FSM at any point in the last 6 years (Ever 6 FSM). • Total of £1.875 billion in 2013-14. • In December the DfE announced a ‘top-up’ of £53 for primary FSM or Ever6 FSM pupils. . School Funding Reform

32. PUPIL PREMIUM 2014/15 April2014 • Total pupil premium budget increase • £1.875 billion to £2.5 billion • £1,300 for primary school pupil • More ambitious targets and clear expectations of what every child needs to achieve. • By 2016 primary schools at least 85% of their 11 year olds above new threshold • £935 for secondary pupils • £300 for service pupils • £1,900 for children who were looked-after for one day School Funding Reform

33. PUPIL PREMIUM • Head teachers decide how to use the pupil premium • They are held accountable for the decisions they make through: • the performance tables which show the performance of disadvantaged pupils compared with their peers • the Ofsted inspection framework, under which inspectors focus on the attainment of pupil groups, and in particular those who attract the pupil premium • the reports for parents that schools have to publish online School Funding Reform

34. UNIVERSAL INFANT FREE SCHOOL MEALS(UIFSM) April2014 • Free school meals for every child in reception and years 1 and 2 of primary education in England from September 2014 • £600m of additional funding made available • £150 million provided to local authorities and through the Academies Capital Maintenance Fund to expand kitchen and dining facilities where needed. • £22.5m to small schools in 2014-15 School Funding Reform

35. NATIONAL FAIR FUNDING April 2014 School Funding Reform

36. CURRENT FUNDING MODEL April2014 School Funding Reform

37. NATIONAL FAIR FUNDING FORMULA April2014 • Funding system unchanged since 2006-07 • Funding since has built on historical pattern • Changes have occurred regarding deprivation, density, etc. • Not accounted for in funding model • 2013-14 and 2014-15 reforms tighten rules • 37 factors down to 13 • Funding Local Authorities? • Funding schools direct from Whitehall? School Funding Reform

38. NATIONAL ‘FAIR’ FUNDING FORMULA April2014 • Consultation was expected in December 2013 • Announcement was expected before Local Elections in May 2014 • So that NFFF in place by April 2015 • Before the General Election • Clegg and Gove representations to Osborne? • Avoid massive turbulence in transition • Treasury – no money until next CSR • Consultation on ‘Fairer schools funding in 2015-16’ • Rushed out on 13 March • Additional £350m for schools block • 62 of 152 to benefit School Funding Reform

39. ‘FAIRER SCHOOLS FUNDING IN 2015-16’ April 2014 • Consultation to 30 April • “Step towards fairer funding” • Proposes minimum funding levels • Average amounts set by LAs that use these factors (?) • Five pupil characteristics • Age weighted pupil unit • Deprivation • Looked after children • Low attainment • English as additional language • Two school characteristics • Lump sum • Sparsity • Area Cost Adjustment School Funding Reform

40. ‘FAIRER SCHOOLS FUNDING IN 2015-16’ April 2014 • Share of £350m • 0.68% of total schools budget • Summing amount • New funding amount for LA • Increase to this level if less – 62 0f 152 LAs • Stays the same if more - 90 of 152 LAs • MFG -1.5% still applies • Impact on LAs not receiving more ? • Pay award • 2.3% increase in employer pension contributions • General inflation pressures School Funding Reform

41. ‘FAIRER SCHOOLS FUNDING IN 2015-16’Top ten getting more April 2014 School Funding Reform

42. ‘FAIRER SCHOOLS FUNDING IN 2015-16’Bottom ten getting something April 2014 School Funding Reform

43. POST-16 FUNDING April 2014 School Funding Reform

44. POST-16 FUNDING April 2014 • Moved from funding per qualification to funding per learner. • removed any incentive for providers to put students on bigger programmes simply to earn more funding • given providers flexibility to determine programmes that meet the needs of students within framework of programmes of study • significantly simplified the funding system and audit requirements • Removed funding linked to achievement while retaining funding linked to retention. • removed any incentive for providers to put students on easier courses to protect their success rate • freed providers to put students on courses more likely to stretch them and draw out their potential including those needing more maths and English School Funding Reform

45. CHANGES IN 16-19 FUNDING METHODOLOGY Funding no longer to the student for individual qualifications But for a substantial programme of study. Full time programmes have to be between 540 hours and 600 hours. Part time learning is anything less than 540 hr 3 funding rates for part time study.

46. SCHOOLS VS COLLEGES There is still a funding gap between what schools and FE colleges receive in cash terms for 16-19. DFE set out a clear plan to close the gap Take until about 2016 to harmonise funding DFE is also making substantial year-on-year cuts to funding per student Offering transitional protection to ensure schools or colleges don’t lose more than 3% per year

47. PARTICIPATION BUDGET 2014-15 Total planned budget £7.18 billion National funding rate for 16-17 year olds maintained at £4000 Rate for 18 year olds reduced to £3300 Impact of 18 y/o changes capped at 2% of programme funding Disadvantage Block 2 rate remains at £480/£960 for all ages Formula Protection Funding Transferred to formula for those earning more Fixed for those earning less Last year of Transitional Protection Mandatory Maths and English a condition of funding Allocations issued by end of March

48. STUDENTS AGED 18 17.5% cut in funding per full-time student aged 18 at the start of the academic year 2014-15, Funding per student aged 18 reduced from £4,000 to £3,300 Part of a strategy to achieve the savings required in the 2015-16 spending review period. Estimated to affect 100,000 students and save £150 million, Average cost of £600,000 per post-16 provider Some will suffer much greater cuts in excess of £1 million. Sixth-form colleges hit Many have already suffered substantial funding cuts Some face the loss of as much as a third of their funding over between 2010 and 2015.

49. NASUWTPRIORITIES April 2014 School Funding Reform

50. NASUWT SCHOOLS FUNDING April 2014 • Provide equality of opportunity for all learners and contribute to raising educational standards for all pupils and narrow the achievement gap; • Ensure the provision of, and access to, high-quality education and related support services for children and young people, including vulnerable children; • Provide equality of entitlement for all learners to be taught by qualified teachers and for the recruitment and retention of a high-quality workforce in every school; and • Be responsive to changing needs and circumstances and support democratic participation in, and public accountability of, schools and education. School Funding Reform