Schools Forum

1. Schools Forum Consultation Areas for the Dedicated Schools Grant 2018-2019

2. Schools Funding Formula Changes and the National Funding Formula • Any changes to the Funding Formula requires a full sector consultation • The National Funding Formula is a ‘soft’ funding formula for the next two financial years. No commitment made for 2020/21 onwards. • Schools Forum to consider what changes should be consulted on for implementation April 2018 onwards.

3. Key Questions to Consider • Should we be moving towards the National Funding Formula? • Considering the cost implications this is not possible, which areas should we be prioritising? • Should be consider removing the LAC factor considering the increases and changes in Pupil Premium funding? • Should we consider removing Infant Class Size Funding and moving towards a prior attainment factor in primary?

4. ….continued • Should we consider making changes to free school meals factors? • Should our local mobility factor exist on current methodology rather than the historic basis proposed by the Dfe • EAL factors are an outliner The Minimum Funding Guarantee will be set between 0.5% and -1.5% depending on overall affordability.

5. Transfers Between Blocks • The Schools Block will be ring-fenced for the first time in 2018-19. • 0.5% transfer eligible to transfer to the High Needs Block with Schools Forum Approval • Should the Council seek Secretary of State Approval to transfer more than 0.5% in light of secondary exclusions and potential impact on the High Needs Block

7. Special Schools and Enhanced Resource Units Funding • The sector have been requesting a review of the funding mechanism for a number of years. • Current structure has been in place since 2012 and at the time was created to provide stability to settings as we implemented the ‘place plus’ methodology • They are based on a five band model with each banding being individual to each school and was based on the pupil numbers at the time of implementation. This was necessary at the time to allow the new funding methodology to reflect the historic funding allocations to schools

8. A new funding mechanism is being proposed and is based on the following principles: • They are equitable between schools, a child with the same needs at one school would attract the same funding as a child with similar needs at another school. • The banding system will be removed and a single Top Up rate will exist for each need. • Five bands exist at each special school and each band carries an individual value, the current system is too complex. • 87% of children funded in 2017/18 attracted funding in the top 2 bands (bands 4 and 5) and there is a marginal difference of funding between these bands.

9. … continued • An exceptional needs banding has been implemented which allows additional funding to be allocated to the very complex needs. This will be maintained. • Consideration to be paid to other LA funding rates, necessary because local authorities place outside of their boundaries. • We have to ensure that admission decisions are not based on funding and that places in Derby special schools are prioritised for Derby children. • A period of transition to minimalise turbulence although schools current and historic revenue balances will be considered. • The funding envelope is constrained and the Council is statutorily obliged to set a balanced budget.