School Briefing Funding Changes 2018 19 NFF Formula Values - PDF document

15/11/2017 What we will cover today: • The national funding formula for schools and high needs. School Briefing – Funding Changes 2018 ‐ 19 • NFF Formula Values • Sunderland Context • Decisions Required David May • Next Steps November 2017 National Funding Formula National Funding Formula ‐ Background What’s been announced? • Since 2010, DfE have been reforming the funding system so • In July 2017, DfE confirmed that they would introduce that it is simpler, fairer and more transparent. national funding formulae for the 2018 ‐ 19 allocations of schools and high needs funding to local authorities. • In spring 2016, DFE consulted on the principles that should • At the same time they announced that introduction of underpin the funding system and the factors that the new the formula would be supported by additional formulae should contain. investment of £1.3 billion across 2018 ‐ 19 and 2019 ‐ 20. • December 2016, extensive consultation was launched on the • DfE confirmed that the additional funding would be details of the formulae and illustrated its potential impact. distributed in a way that would enable all schools and local areas to benefit. • DfE received over 26,000 responses to the consultations and • DfE have now set out our full response to the these have all been considered fully. consultation and the details of the final national funding formulae. National Funding Formula The structure of the funding system What’s been published? • Executive summary • From 2018 ‐ 19, DfE have confirmed the following: • Policy document – this sets out the details of the structure of the – The dedicated schools grant for LAs will be allocated in 4 reformed funding system and the final national funding formulae for blocks (schools, high needs, early years and central schools schools, high needs and central schools services. services). Each will be calculated on the basis of a different • Government responses to the consultations – these set out the full national formula. response to the second stage consultation (held between December 2016 and March 2017), on the schools and high needs funding formulae – The vast majority (99.5%) of the schools block will be ring ‐ Allocation tables * – these show the impact of the national funding fenced and must be distributed through the local formula for • formulae over the next two years, including provision allocations for 2018 ‐ schools. With agreement from their schools forum, LAs can 19 move 0.5% into other blocks e.g. high needs. • Equalities impact assessment – updated to reflect the final formula. • It remains DfE long ‐ term intention that schools’ budgets should • Technical notes – these explain the details of the formula calculation be set on the basis of a single, national formula (a ‘hard’ • Collect tables ‐ these show LAs the calculation of their provisional LA level formula). To ensure some transitional stability, LAs will continue NFF allocations and the illustrative NFF allocations for schools in their area to set a local formula for schools in 2018 ‐ 19 and 2019 ‐ 20. . 1

15/11/2017 The schools national funding formula (2) The schools national funding formula (1) • The formula proposed in December has been changed in 3 main ways: • The schools NFF will comprise 14 factors – the minimum per pupil level is – Increased the basic per ‐ pupil amount so that primary schools, key an additional factor to the 13 included in the original proposals stage 3 and key stage 4 pupils will attract £2,747, £3,863 and £4,386 respectively; – The introduction of an additional factor in the formula which will Basic per pupil Age-weighted pupil unit Minimum per pupil level A funding provide a minimum per ‐ pupil funding level over the next two years. For secondary schools this will be £4,800 in 2019 ‐ 20 with a English as an Additional needs Low prior additional transitional amount of £4,600 in 2018 ‐ 19; and for primary schools B Deprivation Mobility attainment funding language this will be £3,500 in 2019 ‐ 20 with a transitional amount of £3,300 in Premises 2018 ‐ 19. School-led Lump sum C Sparsity Growth funding Split sites Exceptional – The funding floor has increased so that the formula will provide for Rates PFI premises an increase of at least 0.5% per pupil in 2018 ‐ 19 and at least 1% per Geographic pupil by 2019 ‐ 20 in respect of all schools compared to their D Area Cost Adjustment funding baselines. NB: Not to scale. Funding for factors in italics will be allocated to local authorities on the basis of historic spend in 2018-19 The schools national funding formula (3) The schools national funding formula (4) • The following slides set out further detail on the 14 factors used – Additional needs funding (£5.9bn, 17.8%) in the formula. With the exception of the changes set out above, • Deprivation funding– deprivation factors include and a small change to the IDACI banding, the final factor values eligibility for free school meals (both current and historic), are as proposed in the second stage consultation. and postcode ‐ based deprivation (IDACI). – Basic per ‐ pupil funding (£24.2bn, 72.9%) • Low Prior Attainment– pupils who do not achieve the • Age Weighted Pupil Units ‐ this is the basic funding that expected level on entry to primary school/at key stage 2 all pupils attract (£2,747 for primary; £3,863 for KS3; will attract additional funding through this factor. £4,386 for KS4). • English as an additional language – a pupil who speaks • Minimum per ‐ pupil funding levels ‐ for secondary schools English as an additional language will attract funding if this will be £4,800 in 2019 ‐ 20 with a transitional amount they have entered the state education system during the of £4,600 in 2018 ‐ 19; and for primary schools this will be last three years. £3,500 in 2019 ‐ 20 with a transitional amount of £3,300 in • Mobility funding ‐ in 2018 ‐ 19 we will allocate funding to 2018 ‐ 19. local authorities on a historic spend basis. The schools national funding formula (6) The schools national funding formula (5) – School ‐ led funding (£3.1bn, 9.3%) • In addition to the factors set out above, the formula includes a funding floor and a gains cap. • Lump sum ‐ every school will attract a lump sum of £110,000. • Sparsity ‐ eligibility for sparsity funding depends on the distance – The funding floor the pupils in the school would have to travel to their next nearest • The formula will provide for an increase of at least 0.5% per school and the average no. of pupils per year group. pupil in 2018 ‐ 19 and at least 1% per pupil by 2019 ‐ 20 in respect • Premises ‐ premises ‐ related funding will be allocated on the basis of all schools compared to their baselines. of historic spend through four factor: rates, split ‐ sites, private • The baseline includes basic per ‐ pupil funding, additional needs finance initiative (PFI) and exceptional circumstances. PFI will be funding and the difference between the school's historic lump uprated annually in line with RPIX. sum/sparsity funding and the NFF lump sum/sparsity funding. • Growth ‐ in 2018 ‐ 19 the growth factor will be allocated on the basis of what each local authority plans to spend in 2017 ‐ 18. – The gains cap – Area cost adjustment ‐ hybrid model which takes into account the • The gains cap will be 3% per pupil in 2018 ‐ 19 and a further 3% general labour market trends and the particular salary variations in per pupil in 2019 ‐ 20, over 2017 ‐ 18 baselines. the teaching workforce. This is applied to basic per ‐ pupil, additional needs and school led funding. 2