Specific Grants Review Group Date: 24th May 2012

Agenda Item 4

REPORT TITLE: Current Formula Factors compared to the Simplified Funding Formula Report by Yannick Stupples-Whyley Contact details: Telephone (01245) 433171; e-mail: yannick.stupples-whyley@essex.gov.uk 1. Purpose of report

1.1 To update the SGRG of how the current Formula for Funding Schools compares to the DfEs proposed simplified formula for 2013/14. 2. Recommendations

2.1 To agree the factors that require review in formulating the new Essex Formula for Funding Schools. 3. Relevance to Strategic Plans

3.1 The Schools Budget supports the strategic objectives of the LA around the childrens agenda. 4. Finance Implications

4.1 The table at Annex A shows the factors within the current Essex Formula for Funding Schools and the factors allowed in the new simplified Essex Formula for Funding Schools. 4.2 It can be seen that Essex currently use a total of 19 funding factors out of the 37 factors that are permitted by the School Finance Regulations 2012. 4.3 The factors for SEN and Delegated Enhanced Provision will transfer to the High Needs Block and will be funded separately to the Formula for Funding Schools. 4.4 Essexs AEN Factor will be split into the new deprivation factor and the new low cost, high incidence SEN factor. 4.5 The factors for free school meals, sewage treatment works, small school subsidy, admissions, key stage 1 class size adjustment, opening, closing, reorganising schools, turbulence, MOD pupils, practical learning and Joint Use will disappear. 1

4.6 The Lump Sum will need to be reviewed and recalculated as there will be one Lump Sum applicable to all primary and secondary schools. The DfE state within the consultation document that the Lump Sum should be sufficient to ensure efficient small schools to survive. 4.7 The deprivation factor can only be calculated using free school meals or IDACI data or a combination of the two. If IDACI is used it is proposed that this can be weighted. 4.8 Low cost, high incidence SEN will be funded using prior attainment data. 4.9 The last review did not review the split site or London Weighting factors so the Group may wish to review these factors this time. 4.10 There are two factors not currently used by Essex, English as additional language and looked after children. Funding is held centrally for EAL, so the Group may wish to decide to devolve this funding through the Formula. 4.11 The DfEs proposal is for the entire Schools Block to be devolved to schools and then for the LA to seek agreement for funding to return to the LA to centrally provide services to schools. The LA would like to seek an early indication of the services schools would like the LA to provide. 5. 6. 7. 8. Other Resource Implications Background Consultation with stakeholders Background / Supporting papers.