Agenda item

2016-17 Finalised DSG Settlement and guaranteed 2017-18 DSG funding.

To note RBWM’s finalised 2016-17 DSG allocation and receive an update on school funding in 2017-18.

Minutes:

The Forum were informed that the report being considered was split into two parts. The first summarised changes in RBWM’s 2016-17 Dedicated Schools Grant (DSG) allocation as a result of the finalised settlement announced by the Education Funding Agency in July 2016; the impact on planned expenditure in 2016-17, and on the distribution of funding between the Early Years, Schools, and High Needs blocks. 

 

The second part of the report summarised the changes to school funding arrangements for 2017-18 and RBWM’s indicative 2017-18 DSG allocation.

 

The Forum were informed that there was an increase of £123k on the DSG settlement announced in December 2015, as reported to Schools Forum in March 2016. This increase was mainly due to an increase of 31 FTE three and four year olds compared with Jan 2015.

 

The Forum noted that the funding arrangements for 2017 to 2018 would remain broadly similar to last year, as the DfE had announced that implementation of the national funding formula would be put back to 2018-19.  LAs’ 2017-18 allocations for the schools block and high needs block would be based on adjusted baselines reflecting LAs’ pattern of planned spend in 2016-17 rather than how government previously allocated funding. 

 

On page 25 of the report table 4 showed the calculation of  the 2016/17 adjusted baseline to be used for the indicative 2017-18 allocations, including the transfer of £315k Education Services Grant (ESG) retained duties funding in to the schools block DSG and the transfer of £492k of place funding from the EFA’s post 16 budget into the high needs block for high needs places in further education (FE) colleges.

 

The Forum were informed that RBWM’s schools block guaranteed unit of funding for 2017-18, £4,421.73 was £34 per pupil less than in 2016-17 due to the amount of schools block funding that had been transferred into the high needs baseline.

 

With regards to the education services grant general funding rate the Forum were informed that the grant would cease in September 2017 as planned. This grant is currently paid to LAs for its maintained pupils and separately to academies, at the rate of £77 per pupil.

 

As well as delegated and central schools block expenditure, schools block funding in 2017/18 would now include £315k previously paid to the Council as the retained duties element of the education services grant to support statutory services provided centrally on behalf of all schools. This was a transfer of funding from the LA to the Schools Block, not additional funding and the Forum were asked to approve the retention of £315k in the 2017-18 schools block central expenditure budget to continue to support the provision of the statutory services.

 

Resolved Unanimously: that the Schools Forum approved the retention of £315k in 2017-18 for the statutory services set out in paragraph 5.9 previously funded by the retained duties element of the Education Services Grant.

 

The Schools Forum were also asked to comment on and give an in principle agreement to:

 

·         Leave the 2017-18 local school funding formula unchanged from 2016-17 in light of the turbulence expected in 2018-19 when the national funding formula would be implemented

·         Use the 2017-18 basic per pupil entitlement rates across all key stages to balance the schools budget if pupil numbers turn out differently from the estimate.

·         Retain maintained schools DSG funding in 2017-18 at the rate of £11 per pupil and to seek voluntary contributions from Academy schools at a similar level, to part fund school improvement / governor services currently funded by the Education Services Grant general funding grant that is ceasing in Sep 2017

 

The additional £11 per pupil contribution was being asked for as there had been a reduction in funding to the LEA but there had been no reduction in statutory duties.

 

(Alison Alexander joined the meeting)

 

Mike Wallace questioned what the impact would be if the Forum refused the request for £11 per pupil and was informed that if additional funding for the services could not be found then the continued delivery at current levels of services such as school improvement would need to be reviewed.

 

Nick Stevens mentioned that there was a perception that school improvement services were already under resourced and was informed that there were fewer directly employed officers in this area.

 

Clarification was sought regarding getting funding from academy schools and the forum were informed that they would be written to and asked to contribute.  The LA currently provided improvement support to all schools; however if academies say no to this proposal then this offer would have to be reviewed.

 

Mike Wallace said he would like to get the views of academies on this proposal before the Forum make a decision as if they said no this would change the proposition. 

 

Isabel Cooke and Heidi Sweindenbank both felt that academies would not support this proposition.

 

Resolved unanimously: that the Schools Forum note the report.

 

Supporting documents: