Decision details

Developer Contribution - cost per school place multiplier rate update

Decision Maker: Interim Assistant Director Education, Access, Quality, and Improvement

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

Any number of additional homes built in Surrey are likely to yield an additional number of school age children. The number of additional children expected to be provided from new housing is calculated using a specified pupil product ratio – for example, it is currently estimated that 100 new homes would provide 25 additional primary aged children who require a school place. This number is then multiplied by a cost per place, usually based on the Department for Education (DfE) basic need cost multipliers – the current costs are set out below:

 

 

Early Years

Primary

Secondary

DfE 2024-25 cost multipliers

£13,541 per FTE

£19,345

£24,856

 

The basic need rate per place for 2025/26 calculated by DfE, uses the base rate per place from the 2017-18 allocations, inflated according to the independent Building Cost Information Service (BCIS) All-in Tender Price Index (TPI). This is so that it reflects changes in construction inflation construction inflation between August 2017 and August 2025. The rate per place is subsequently weighted by BCIS regional location factors.

 

The secondary cost is set at 30% higher than the primary rate to reflect the higher costs associated with creating secondary school places. The funding rates have then been uplifted by around 10% to support costs associated with achieving improved sustainability standards, providing the following cost multipliers for 2025/26:

 

 

Early Years

Primary

Secondary

DfE 2025-26 cost multipliers

£13,754 per FTE

£19,648.88

£25,246.53

 

Details of the basic need rates for 2023/24 to 2025/26 are shown in Annex 1.

 

The proposal is to update the cost multipliers to reflect the later rates from DfE.

Decision:

It was AGREED that:

 

1. The cost multipliers be updated to 2025-26 rates as set out in the summary.

 

Reasons for the decision:

The rates being used are those used by DfE for our basic need funding allocation and therefore should be more representative of actual costs.

 

Alternative options considered:

None

Interests and Nature of Interests Declared:

None.

Publication date: 28/03/2025

Date of decision: 27/03/2025