Agenda item

RESOLVED:

1.    That appeals be lodged with the Secretary of State to overturn the decisions of the Schools Forum and:

a)    permit the transfer of 0.5% of the Schools Block (£3.1m) to support High Needs Special Education Needs & Disability (SEND)

b)    enable the council to introduce a control mechanism on maintained schools’ excessive balances to support High Needs SEND. 

2.    That to ensure the sustainability of the additional SEN funding factor provided to mainstream schools with high numbers of SEND pupils, the threshold for funding be increased and thereby targeted to fewer schools. This recommendation was in the context of increased funding for Low Prior Attainment provided by the National Funding Formula. 

3.    That the transition to the National Funding Formula (NFF) progresses at a steady rate from 72.5% to approximately 85% of NFF values in 2019/20. This facilitates a move to 100% by 2020/21 when the full NFF funding is available.

4.    That the council implement the Minimum Per Pupil Level (MPPL) in full. However, should the appeal to the Secretary of State to transfer £3.1m to High Needs be approved, the full MPPL should be reduced by approximately £31 per pupil to ensure all schools contribute. (The Schools Forum supported the full MPPL but refused the £3.1m transfer.)

5.    That the following formula recommendations from the Schools Forum be approved:

Schools Formula Funding

a)    The minimum funding guarantee (MFG) for schools should be set at zero

b)    All minor formula changes involving facilitating the transition towards the National Funding Formula are implemented. (E.g. notional SEN funding)

c)    £0.3m from the surplus on the de-delegated primary schools’ contingency should be distributed to primary schools reflecting the origin of the funds.

Early Years Funding

d)    The SEN Inclusion Fund to provide additional funding to providers for 3-4 year olds with SEND should be set at £1.4m

e)    Funding for individual Early Years providers should be at rates which are commensurate with the levels of Direct Schools Grant (DSG) funding, currently estimated at:

·         £4.65/ hour for three and four year olds (£4.60 in 2018/19);

·         £5.88 / hour for two year olds (unchanged); and

·         £2.77 / hour additional deprivation funding (based on eligibility for the early years pupil premium on economic grounds (unchanged)

f)     That 2.5% of formula funding is allocated as a deprivation supplement for children meeting the Department for Education criteria for the early years pupil premium.

g)    Funding for free meals provision in maintained and academy nurseries should remain unchanged.

6.    That authority is delegated to the Director of Education, Lifelong Learning & Culture in consultation with the Leader and the Cabinet Member for All-Age Learning to approve amendments to the schools and early years formulae as appropriate following receipt of the DSG settlement and DfE pupil data in December 2018. This was to ensure that total allocations to schools under this formula remain affordable within the Council’s DSG settlement.

7.    That the Leader write to the Secretary of State and lobby the Local Government Association with regards to applying the same conditions on academy schools in respect of balances.

Reason for Decisions:

To comply with Department for Education regulations requiring formal council approval of the local funding formula for Surrey’s primary and secondary schools.  

[The decisions on this item can be called in by the Children and Education Select Committee]

The Cabinet Member for All-Age Learning introduced a report that set out how the funding of all Surrey schools (including academies) and the free entitlement to early years nursery provision were funded from the Council’s Dedicated Schools Grant (DSG). Each local authority was required to consult on and maintain local formula arrangements to allocate the DSG.  The report also set out the recommended funding formula for Surrey schools in 2019/20 and, following a joint consultation with Early Years providers, also proposed the principles to be adopted in the funding of early years in 2019/20.

She also explained that this year, increasing pressures in providing for pupils with Special Educational Needs and Disabilities (SEND) had necessitated requests for support from the Schools block which were not supported by the Schools Forum and the Cabinet was asked to consider an appeal to the Secretary of State.

Mr Chris Botten addressed the Cabinet and requested that additional steps be taken to minimise the impact of the proposals on vulnerable schools. He himself was Chair of Governors at two schools and one of which was a 1 Full Time Equivalent (FTE) infant school that could not afford the proposed £31 per child. He requested that a risk analysis be undertaken on small schools in Surrey to check the affordability of the proposals. He also thought that the Secretary of State would be more likely agree the proposed appeal if mitigation measures had been put in place for those vulnerable schools. Mr Botten also requested that assessment be made when looking at a schools built up reserves in that it may be for a particular reason e.g. Ofsted inspection.

The Cabinet Member for All-Age Learning responded by explaining that there were expert officers that understood schools budgets and would look at this on a school by school basis. The budget pressures faced by schools was understood. She also explained that the Department for Education (DfE) would be paying the increase in pension costs and details of that were expected in January 2019. It was recognised that schools had contributed £32m over the last five years to High Needs, however, the Council was in a difficult situation and needed to make an appeal. If agreement was given to transfer the £3.1m from schools budgets then the ceiling would be lowered on the top gainers of the additional £11m going to schools as this would not be distributed equally to everyone. The Council would continue to monitor and support schools.  With regard to the clawback of excessive balances, only excessive balance beyond the 20% of the budget from 31 March 2019 and 15% thereafter would be clawed back in line with DfE guidance. There was also a set of criteria to ensure that the proposals did not have a destabilising effect on schools, particularly small schools and those with high numbers of children with high needs. Mr Botten was reassured by this response from the Cabinet Member.

RESOLVED:

1.    That appeals be lodged with the Secretary of State to overturn the decisions of the Schools Forum and:

a)    permit the transfer of 0.5% of the Schools Block (£3.1m) to support High Needs Special Education Needs & Disability (SEND); and

b)    enable the council to introduce a control mechanism on maintained schools’ excessive balances to support High Needs SEND. 

2.    That to ensure the sustainability of the additional SEND funding factor provided to mainstream schools with high numbers of SEND pupils, the threshold for funding be increased and thereby targeted to fewer schools. This recommendation was in the context of increased funding for Low Prior Attainment provided by the National Funding Formula. 

3.    That the transition to the National Funding Formula (NFF) progresses at a steady rate from 72.5% to approximately 85% of NFF values in 2019/20. This facilitates a move to 100% by 2020/21 when the full NFF funding is available.

4.    That the Council implement the Minimum Per Pupil Level (MPPL) in full. However, should the appeal to the Secretary of State to transfer £3.1m to High Needs be approved, the full MPPL should be reduced by approximately £31 per pupil to ensure all schools contribute. (The Schools Forum supported the full MPPL but refused the £3.1m transfer.)

5.    That the following formula recommendations from the Schools Forum be approved:

Schools Formula Funding

a)    The minimum funding guarantee (MFG) for schools should be set at zero

b)    All minor formula changes involving facilitating the transition towards the National Funding Formula are implemented. (E.g. notional SEN funding)

c)    £0.3m from the surplus on the de-delegated primary schools’ contingency should be distributed to primary schools reflecting the origin of the funds.

Early Years Funding

d)    The SEN Inclusion Fund to provide additional funding to providers for 3-4 year olds with SEND should be set at £1.4m

e)    Funding for individual Early Years providers should be at rates which are commensurate with the levels of Dedicated Schools Grant (DSG) funding, currently estimated at:

·         £4.65/ hour for three and four year olds (£4.60 in 2018/19);

·         £5.88 / hour for two year olds (unchanged); and

·         £2.77 / hour additional deprivation funding (based on eligibility for the early years pupil premium on economic grounds (unchanged)

f)     That 2.5% of formula funding is allocated as a deprivation supplement for children meeting the Department for Education criteria for the early years pupil premium.

g)    Funding for free meals provision in maintained and academy nurseries should remain unchanged.

6. That authority be delegated to the Director of Education, Lifelong Learning & Culture in consultation with the Leader and the Cabinet Member for All-Age Learning to approve amendments to the schools and early years formulae as appropriate following receipt of the Dedicated Schools Grant settlement and Department for Education pupil data in December 2018. This was to ensure that total allocations to schools under this formula remain affordable within the Council’s DSG settlement.
7. That the Leader write to the Secretary of State and lobby the Local Government Association with regards to applying the same conditions on academy schools in respect of balances.

Reason for Decisions:

To comply with Department for Education regulations requiring formal Council approval of the local funding formula for Surrey’s primary and secondary schools.  

The meeting adjourned for five minutes and resumed at 16.42pm