School and Academy Funding Guidance February 2016
School and Academy
Funding Guidance 2016-17
(Updated February 2016)
Contents
Introduction 2
Factor 1 - Basic Per Pupil Entitlement 2
Factor 2 - Deprivation 3
Factor 3 – Lump Sum 3
Factor 4 - Split Sites 4
Factor 5 - Rates 5
Factor 6 - PFI Funding 5
Factor 7 – Exceptional Circumstances 5
Minimum Funding Guarantee and Funding CAP 5
De-Delegated Items 5
Notional SEN Budget 5
Other Funding Sources 6
a. Pupil Premium 6
b. Devolved Formula Capital 6
c. Pupil Growth Fund 6
Note: Any reference to schools also applies to academies unless specified otherwise.
Introduction
2016-17 Individual School Budgets (ISB)
1. The 2016-17 ISBs continue the simplified local funding system introduced by the Secretary of State in 2013-14. The schools funding formula to which this guidance relates is only applicable to primary, secondary and all-through schools and academies (i.e. not special schools, nursery schools or PRUs).
Detailed Formula Guidance - The Schools Block
2. The Dedicated Schools Grant (DSG) for 2016-17 will be split into 3 elements. The Early Years Block for pre-reception funding, the High Needs Block and the Schools Block.
3. This document provides guidance in respect of the 7 funding formula factors which will be used within the Schools Block for 2016-17 and also information relating to other areas of school funding.
4. The optional schools formula funding factors which are NOT used by NCC in the schools funding formula for distributing DSG to schools are:
o Looked after children (LAC)
o English as an Additional Language
o Mobility
o Prior Attainment
o Sparsity Factor
o London Fringe Payments
Factor 1 - Basic Per Pupil Entitlement
5. A compulsory factor that assigns funding to individual pupils based on the October census preceding the ISB budget year. The DfE has recognised that there are differences in expenditure between Primary and Secondary key stages. This has been reflected by allowing the use of different rates as follows
Table 1: Average Weighted Pupil Unit (AWPU) rate for 2016-17
Phase / DfE Minimum Funding Level / NCC Funding in 2016-17Primary / £2,000 / £2,699.58
Key Stage 3 / £3,000 / £3,848.91
Key Stage 4 / £3,000 / £4,347.91
Factor 2 - Deprivation
6. Deprivation is funded via the Free School Meal ever 6 data (FSM6) component. FSM6 numbers are a calculated by the DfE taking the proportion of pupils on the January census that have ever been entitled to free schools meals in the last six years, compared to those who have not been entitled, multiplied by the total numbers on roll (NOR) in the October census. So for 2016-17, it is the January 15 proportion multiplied by the October 15 NOR that determines the proportion of pupils generating this part of the schools budget.
7. It is compulsory that there is a deprivation factor used but the EFA does not impose a minimum or maximum level on the rate applied.
Table 2: Deprivation rates for the Free School Meal Ever 6 proportion:
Free School Meal Ever 6FSM6 % Phase / NCC Rate 2016-17
Primary / £2,362.56
Secondary / £3,292.24
8. Northamptonshire’s formula distributes a higher than average amount of funding to deprivation compared to our statistical neighbours, the deprivation rates in both sectors are significantly above national averages and both rates are in the upper quartile of deprivation unit rates nationally. Following consultation and discussions at schools forum the total amounts distributed to each sector for deprivation were capped at the 2015-16 levels. Applying this principle the unit rates have reduced by 2.2% primary and 0.75% secondary.
9. Note - There is no funding distributed via the IDACI data set. This is because using the numbers of free school meals gave a closer approximation of the 2012-13 patterns of deprivation funding allocations than if IDACI was used, mitigating against significant losers in respect of this factor at an individual school level.
Factor 3 – Lump Sum
10. The lump sum is an optional factor that NCC does include in schools formula funding. The EFA give a maximum value for this which is £175,000 for both phases. 2016-17 is the last year of a three year distribution of ‘one-off’ funding and this is being distributed to schools through the lump sum. The one off funding is outside of the MFG calculations.
Table 3: Lump sum rates for 2016-17
Lump Sum Phase / NCC Rate BASE 2016-17 / NCC one off funding 2016-17 / NCC TOTAL Lump Sum 2016-17Primary / £125,000 / £13,400 / £138,400
Secondary / £125,000 / £50,000 / £175,000
Factor 4 - Split Sites
11. The DfE has referred to split site funding specifically within the new school funding arrangements. It is recognised that these schools incur higher running costs, for example extra staffing costs due to travel between sites and the care and maintenance of 2 sites.
12. NCC provides split site funding in three component elements, leadership costs, building care and maintenance and staff and pupil travel. A school may be entitled to one, two or all three. There is a fourth component level for Secondary Schools only, where the buildings are more than 5 miles apart and this is exclusive of, not in conjunction with, the other three elements. The funding in each of the component elements would be maximums allowing lower amounts to be applied where circumstances warrant this.
13. Schools will be assessed at their request based on these new criteria including those schools currently in receipt of split site funding.
14. The criteria to qualify for the funding elements are as follows:
a. Where a school is more than 1 mile apart an allocation is given to support extra leadership costs including site management. Primary schools of less than 400 pupils in total or secondary schools of less than 1,500 pupils would be entitled to this element of funding. It is assumed larger split site schools should have sufficient scale to manage the efficient use of their site not to require this element of split site funding; and/or
b. Where a school is separated by a public road that utilises traffic funding will be given to support the extra pressure incurred by having 2 sites incurring higher fixed costs for the care, maintenance and operation of the buildings; and/or
c. Where a school is separated by a public road that utilises traffic and there is daily movement of pupils between sites there will be a contribution towards the extra costs of staff and pupils transportation between the 2 sites.
d. Any Secondary schools with sites greater than 5 miles apart would receive split site funding equivalent to the Secondary lump sum funding amount.
Table 4: Split Site Rates for 2016-17
Phase / a. Leadership Costs(*) / b. Building Care & Maintenance / c. Staff and pupil travel / d. Secondary 5+ miles apartPrimary / Up to a maximum of
£25,000 / Up to a maximum of
£20,000 / Up to a maximum of
£30,000
Secondary / Up to a maximum of
£40,000 / Up to a maximum of
£25,000 / Up to a maximum of
£50,000 / Total of the Secondary Lump Sum up to £175,000
Note (*) applies where a Primary school is less than 400 pupils in total or a Secondary school is less than 1,500 pupils in total.
Factor 5 - Rates
15. This is funded at the estimated rate of charge.
16. For mainstream schools the budget allocated to schools for National Non-Domestic Rates in the schools budget for 2016-17 is equal to the amount NCC will invoice for the year 2016-17.
17. The arrangements for rates in academies differ slightly so these schools should see the EFA guidance on this area. The latest information, at the time of writing this document, is available on the DfE website:
https://www.gov.uk/guidance/academies-funding-allocations
Factor 6 - PFI Funding
18. The DfE introduced the PFI factor to recognise the unique costs of PFI arrangements. As a result of the school funding reforms the authority uses this factor in respect of PFI schools and academies.
Factor 7 – Amalgamating schools
19. It is a EFA requirement that In the first year after amalgamating the school is entitled to 85% of the lump sums of the previously separate schools.
Minimum Funding Guarantee and Funding CAP
20. The Minimum Funding Guarantee prevents a reduction in formula funding of more than 1.5% per pupil. This rate is set nationally.
21. In most years schools that gain are also capped to ensure that the overall funding is affordable and can be sustained into the future. In 2016-17 we have been able to remove the cap completely. This allows these schools to move to 100% of the formula funding.
De-Delegated Items
22. The only areas of the Individual Schools Budget authorised by Schools Forum to be de-delegated for 2016-17 are:
· Primary Trade Unions Facility Time - £2.10 per primary pupil
· Primary School Improvement Grants - £10 per primary pupil
23. This applies to maintained primary schools only and not academies. The total amount for de-delegation will be deducted from the school budget allocation.
Notional SEN Budget
24. As part of the funding reforms the authority is required to calculate notional SEN budgets for mainstream schools and academies. The notional SEN budget shown on the budget information for 2016-17 is calculated as:
· 8.3% of each school or academy per pupil allocation plus
· 12% of each schools deprivation allocation.
25. Schools should note that the notional SEN schools block budget figure excludes funding for SEN units (to be allocated from the High Needs block) and any top ups (element 3 of the high needs funding approach) for mainstream high needs pupils.
Other Funding Sources
26. Schools will continue to receive the following funding outside of their school allocations:
a. Pupil Premium Grant
27. Pupil Premium will continue to be funded predominantly as it is currently. The rates for 2016-17 are the same as in 2015-16.
Table 5: Pupil Premium Grant rates 2016-17
Disadvantaged pupils / Pupil premium per pupilPupils in year groups reception to year 6 recorded as Ever 6 FSM / £1,320
Pupils in years 7 to 11 recorded as Ever 6 FSM / £935
Looked-after children (LAC) defined in the Children Act 1989 as one who is in the care of, or provided with accommodation by, an English local authority / £1,900
Children who have ceased to be looked after by a local authority in England and Wales because of adoption, a special guardianship order, a child arrangements order or a residence order / £1,900
Service children
Pupils in year groups reception to year 11 recorded as Ever 6 Service Child or in receipt of a child pension from the Ministry of Defence / £300
28. It should be noted that the funding for summer schools is not continuing in 2016-17.
b. Devolved Formula Capital
29. Devolved Formula Capital will continue to be funded as it is currently. The latest information, at the time of writing this document, is available on the DfE website:
https://www.gov.uk/government/publications/capital-allocations
c. Pupil Growth Fund
30. Where schools are requested to increase their pupil admission number (PAN) by the local authority or where a new school is being established by the authority, the full pupil/class increase will be taken into account in determining the funding. The allocations, which apply to all maintained schools and academies, will be based on the following criteria;
1) The NCC Admissions and School Place Planning Manager will:
· confirm with the school if the lower (15 pupil increase - £13,129 p.a.) or higher (30 pupil increase - £49,354 p.a.) reimbursements rate will be utilised and
· confirm if an allocation for consumables is required,
· Funding will be issued for the period from the intake of pupils to the subsequent issue of the budget where the pupils are then included in the base budget.
2) This funding is calculated using Pupil Census data or schools admissions data. Where school admission data is used to calculate the increase in pupil numbers this will subsequently be verified by the following Pupil Census data and adjusted up or down as applicable.
3) The level of funding per school is detailed in Table 6 below.
Table 6: Pupil Growth Fund Rates for 2016-17
Growth Fund Element / 2016-17 Rates / 5/12thsApr-Aug / 7/12ths
Sept-Mar
15 pupil increase
Classroom Support (15 pupil increase) / £13,129 / £5,470 / £7,658
30 pupil increase
Teacher / £39,900 / £16,625 / £23,275
LSA / £9,454 / £3,939 / £5,515
Total / £49,354 / £20,564 / £28,790
Consumables - optional
Consumables. Maximum per 30 pupils. / £1,000 / £417 / £583
Queries relating to information in this document should be sent to:
High Needs:
SEN Units:
Growth Fund:
Formula Budget:
Pupil Premium:
Other Queries:
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