School and Academy Funding Guidancefebruary 2017

School and Academy Funding GuidanceFebruary 2017

Northamptonshire School and Academy

Funding Guidance 2017-18

(Updated February 2017)

Contents

Introduction

Factor 1 - Basic Per Pupil Entitlement

Factor 2 - Deprivation

Factor 3 – English as An Additional Language (EAL)

Factor 4 – Prior Attainment

Factor 5 – Lump Sum

Factor 6 – Split Sites

Factor 7 - Rates

Factor 8 - PFI Funding

Factor 9 – Amalgamating schools

Minimum Funding Guarantee and Funding CAP

De-Delegated Items

Notional SEN Budget

Other Funding Sources and Considerations

a. Pupil Premium Grant

b. Devolved Formula Capital

c. Pupil Growth Fund

d. Apprenticeship Levy

Note: Any reference to schools also applies to academies unless specified otherwise.

Introduction

2017-18 Individual School Budgets (ISB)

1. The 2017-18 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, secondaryand 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 2017-18 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 9 funding formula factors which will be used within the Schools Block for 2017-18 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:

• Looked after children (LAC)
• Mobility
• Sparsity Factor
• 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. Local authorities may choose to increase the pupil number count where schools had previously had higher reception pupil numbers in January than in the October census. This is referred to as reception uplift and NCC have chosen to apply this uplift which adds 132 pupils to 67 schools.

6. 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 2017-18

Phase / DfE Minimum Funding Level / NCC Funding in 2016-17 / NCC Funding in 2017-18 / Proposed in National Funding Formula for
2019-20
Primary / £2,000 / £2,699.58 / £2,689.29 / £2,712
Key Stage 3 / £3,000 / £3,848.91 / £3,834.23 / £3,797
Key Stage 4 / £3,000 / £4,347.91 / £4,331.32 / £4,312

Factor 2 - Deprivation

7. Deprivation is funded via the Free School Meal ever 6 data (FSM6) component. FSM6 numbers are calculated by the DfEtaking 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 2017-18, it is the January 2016 proportion multiplied by the October 16 NOR that determines the proportion of pupils generating this part of the schools budget.

8. 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. In the National funding formula from 2019/20 there will be funding rates applied to FSM6, FSM (in recognition that current FSM will have a meal cost, whereas FSM6 that are not current FSM will not) and the IDACI (Income Deprivation Affecting Children Index) bands (the highest band that a pupil qualifies is what is awarded, i.e. the rates aren’t cumulative).

Table 2:Deprivation rates for the Free School Meal Ever 6 proportion:

Free School Meal Ever 6
FSM6 Phase / NCC Rate 2016-17 / NCC Rate 2017-18 / National Formula Funding 2019-20
Primary / £2,362.56 / £2,026.75 / £540
Secondary / £3,292.24 / £2,867.34 / £785
Free School Meal FSM
Phase (additional to FSM6 rate above) / NCC Rate 2016-17 / NCC Rate 2017-18 / National Formula Funding 2019-20
Primary / 0 / 0 / £440
Secondary / 0 / 0 / £440
IDACI Bands (additional to FSM and FSM6, one band rate applies per pupil) / NCC Rate 2016-17 / NCC Rate 2017-18 / National Formula Funding 2019-20
IDACI Band F / 0 / 0 / £200
IDACI Band E / 0 / 0 / £240
IDACI Band D / 0 / 0 / £360
IDACI Band C / 0 / 0 / £360
IDACI Band B / 0 / 0 / £420
IDACI Band A / 0 / 0 / £575

9. Northamptonshire’s formula distributed in 2016-17 a higher than average amount of funding to deprivation compared to our statistical neighbours, the deprivation rates in both sectors were significantly above national averages. Following consultation and discussions at schools forum the total amounts distributed to each sector for deprivation were reduced and the funding redistributed through the Prior Attainment and English as Additional Language factors to move towards the national funding formula.

10. Note - There is currently 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.

Factor 3 – English as An Additional Language (EAL)

11. After consultation with schools and school’s Forum, EAL is to be used in Northamptonshire’s schools funding formula in 2017-18. The rates are shown in the table below and reflect the rates consulted on with all schools in 2016. This moves a step towards the National Formula proposed rates for 2019-20.The deprivation rates have been reduced to ensure the formula change is cost neutral.

Description / Phase / Amount per pupil 2017-18 / NFF Amount per pupil 2019-20
English as an Additional Language (EAL) / EAL 3 Primary / £183.33 / £515
EAL 3 Secondary / £351.67 / £1,385

Factor 4 – Prior Attainment

12. The Prior Attainment factor which acts as a proxy indicator for low level, high incidence special educational needs, is also being introduced into the Northamptonshire Schools Funding Formula for 2017-18.

13.The allocation for primary, infant and junior schools is based on Early Years Foundation Stage Profile. The allocation for secondary schools is based on the end of KS2 tests

14. The rates to be used in the 2017-18 schools funding formula are shown in the table below and as with EAL, these move towards the proposed rates for the national funding formula being introduced in 2019-20 and are those in the Northamptonshire schools consultation in 2016. The deprivation rate has been reduced to make the formula change cost neutral to the overall funding for the schools formula.

Description / 2017-18 Weighting / 2017-18 Amount per pupil / Percentage of eligible pupils / NFF 2019-20 Amount per pupil
Prior attainment / Low Attainment % new EFSP / 46.93% / £289.71 / 18.58% / £1,050
Low Attainment % old FSP 78 / 18.58%
Secondary low attainment (year 7) / 48.02% / £356.18 / 24.42% / £1,550
Secondary low attainment (years 8 to 11) / 24.27%

Factor 5–Lump Sum

15. 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.2016-17wasthe last year of a three year distribution of ‘one-off’ funding and this was distributed to schools through the lump sum.

Table 3: Lump sum rates for 2017-18

Lump Sum Phase / Lump Sum2016-17* / Lump Sum 2017-18 / NFF Lump Sum 2019-20
Primary / £138,400 / £125,000 / £110,000
Secondary / £175,000 / £125,000 / £110,000

*included one-off funding, without one-off funding was £125k for both phases.

Factor 6–Split Sites

16. 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.

17.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.

18. Schools will be assessed at their request based on these new criteria including those schools currently in receipt of split site funding.

19. The criteria to qualify for thefunding 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 2017-18

Phase / a. Leadership Costs(*) / b. Building Care & Maintenance / c. Staff and pupil travel / d. Secondary 5+ miles apart
Primary / 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 (£125,000 in 2017-18)

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 7 - Rates

20. This is funded at the estimated rate of charge.

21. For non-academyschools the budget allocated to schools for National Non-Domestic Rates in the schools budget for 2017-18is equal to the amount NCC will invoice for the year2017-18.

22. 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:

Factor 8- PFI Funding

23. The DfE introduced the PFI factor to recognise the unique costs of PFI arrangements. As a result of the school funding reforms the authorityuses this factor in respect of PFI schools and academies.

Factor 9 – Amalgamating schools

24. 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

25. The Minimum Funding Guarantee prevents a reduction in formula funding of more than 1.5% per pupil. This rate is set nationally.

26. prior to 2016-17schools that gain were also capped to ensure that the overall funding is affordable and can be sustained into the future. In 2017-18 we have again been able to remove the cap completely. This allows these schools to move to 100% of the formula funding.

De-Delegated Items

27. The only areas of the Individual Schools Budget authorised by Schools Forum to be de-delegated for 2017-18are:

• Primary and Secondary Trade Unions Facility Time - £2.10 per pupil
• Primary School Improvement Grants - £7.50 per pupil
• Primary and Secondary redundancy contingency - £5 per pupil. New for 2017-18 as Government ESG general duties funding for a number of NCC funded areas removed in 2017-18. Contribution for maintained schools redundancy costs where school is in deficit. A business case application process applies.

28. This applies to maintained schools only and not academies. The total amount for de-delegation will be deducted from the school budget allocation.

Notional SEN Budget

29. 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 2017-18 is calculated as:

• 8.3% of each school or academy per pupil AWPU allocation plus
• 12% of each schools deprivation allocation.

30. 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 and Considerations

31. Schools will continue to receive the following funding outside of their school formula allocations:

a. Pupil PremiumGrant

32. Pupil Premium will continue to be funded predominantly as it is currently. The rates for 2017-18are the same as in 2016-17.

Table 5: Pupil Premium Grant rates 2017-18

Disadvantaged pupils / Pupil premium per pupil
Pupils 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

33. It should be noted that the funding for summer schools is not continuing in 2017-18.

b. Devolved Formula Capital

34. 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:

c. Pupil Growth Fund

35. 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 Primary school is unchanged from 2016-17 and is detailed in Table 6 below.

Table 6: Pupil Growth Fund Rates for 2017-18

Growth Fund Element / 2017-18 Rates / 5/12ths
Apr-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

4)Forum also agreed to introduce a new secondary pupil growth rate for 2017-18. Details on the rates are shown below –

Growth Fund Element / 2017-18 Rates / 5/12ths
Apr-Aug / 7/12ths
Sept-Mar
30 pupil increase
Teacher / £46,700 / £19,458 / £27,242
LSA / £26,000 / £10,833 / £15,167
Total / £72,700 / £30,292 / £42,408
Consumables - optional
Consumables. Maximum per 30 pupils. / £3,000 / £1,250 / £1,750

d. Apprenticeship Levy

36. The apprenticeship levy will impact on all UK employers with a paybill of over £3 million per year. This includes maintained schools, academies and multi-academy trusts. The levy payable is equivalent to 0.5% of their payroll, but each employer will receive an annual allowance of £15,000 to offset against the required amount.

37. The latest guidance from the LGA states that the liability for the levy will depend on the type of school:

• Community and Voluntary Controlled (VC) schools – in these schools the local authority is the employer and therefore all staff in these schools will be included within the LA calculation.
• Voluntary Aided (VA) and Foundation schools. In these schools (as in academies) the governing body is considered to be the employer, rather than the LA. Therefore each VA/foundation school’s liability for the levy will be based on its own paybill.

38. Community/VC schools will have to make provision for the relevant cost of the levy in their individual budgets, in the same way as other payroll costs e.g. National Insurance etc. DfE does not intend to allow the Schools Budget to be top-sliced by the council at the LA level for the levy, and the operational guidance for schools revenue funding in 2017-18 does not make any provision for DSG to be topsliced in this way. As a result, all community/VC schools will need to ensure they have taken account of this additional cost when they set their budgets for 2017-18. A mechanism will then be developed to recharge these costs to individual community/VC schools. Qualifying academies, academy trusts and VA/ foundation schools will be responsible for calculating their own liability and make arrangements for payment.

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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