Agenda item

The report of Grant Davis and Bea Seggari (Schools Strategic Financial Support Team) seeks to outline the Governments response to the ‘Schools National Funding Formula: Changes to sparsity funding from 2022-23’ and the changes which have been implemented into the NFF sparsity factor from 2022-23.

Grant Davis (Schools Strategic Financial Support Manager) referred to the report which sought to outline the Government’s response to the Schools National Funding Formula: Changes to Sparsity funding from 2022-23 and the changes which have been implemented into the NFF sparsity factor from 2022-23 and highlighted the following:

·         The report sought to bring the latest government led changes to the attention of members of the Schools’ Forum rather than for consultation. All funding decisions relating to the 2022-23 year would be taken later this year, following the announcement of the 2022-23 funding settlement;

·         In the Spring of 2021 the DfE held the consultation – a total of 618 responses were received with Wiltshire making up 7% of the overall total number of responses submitted – thanks to all those that responded recognising that there are a large number of rural schools in Wiltshire;

·         The proposals consulted upon were:

a)    Measure sparsity distances by road journeys rather than as the crow flies, to better identify schools’ remoteness.

b)    Retain the same distance thresholds of 3 miles or 2 miles

c)    Increase the maximum amount that schools can attract through the sparsity
factor by £10,000 to
i. £55,000 for primary schools
ii. £80,000 for all other schools

·         Previously there have been inequities for similar Wiltshire schools where some would attract funding and some would not;

·         For the 2021-22 year Schools Forum agreed that the sparsity funding would be increased by 3% in line with other funding factors and the maximum funding was set at £26,780 for primaries and £69,525 for secondaries;

·         97% of respondents agreed that sparsity funding should be allocated to a greater number of schools.  95% of respondents agreed that sparsity distances should be measured by ‘road’ distance rather than ‘crow flies’ distance and 60% of respondents agreed to maintain the distance thresholds of 2 miles and 3 miles respectively for primary and secondary schools;

·         The Council supports the proposal that sparsity distances will be measured by road distance and the increase to sparsity factor values;

·         The DfE will also be introducing a ‘distance threshold taper’ which means that schools that are marginally below the main distance thresholds of 2 or 3 miles can now attract some funding through the sparsity factor but tapered to mean that they would receive less funding than if their sparsity distances were at or above the main thresholds;

·         The ‘distance threshold taper’ has been set at 20% below the main distance thresholds, making it 1.6 miles for primary and 2.4 miles for secondary schools. In essence, a primary school with a sparsity distance between 1.6 and 2 miles (and met the other sparsity criteria) would now be allocated some sparsity funding and this would be a large impact for Wiltshire schools;

·         A school is eligible for sparsity funding where the school’s sparsity distance is above the tapered distance threshold and the school is considered small. For primary schools, this is less than 150 pupils or average year group size of 21.4 pupils. For secondary schools, this is less than 600 pupils, or average year group size of 120 pupils;

·         Schools which are both equal to or above the main distance thresholdand equal to or below the main year group threshold would be entitled to receive the maximum sparsity unit values.  Where a school is between either or both of the main and tapered thresholds, a sparsity weighting would apply;

·         The DfE are proposing three options for the LA and Schools Forum to choose how to fund schools – if using the NFF basis, this would accord with the level of funding to be received from the DfE;

·         Detailed analysis using the October 2020 census data had shown that whichever method is used there would be 50 eligible primaries and 3 eligible secondaries.  It showed that £1.7M of funding would be received but depending on which option was chosen this would not meet the funding requirements if the fixed option was chosen but would enable the NFF or tapered options to be used;

·         Schools Forum would be required, as part of its funding decisions later this year, to confirm the preferred methodology for funding sparsity, including the maximum sparsity funding values. When funding moves to the ‘hard’ formula, schools will be funded using the proposed NFF methodology.

The Salisbury Diocesan representative asked how many schools in Wiltshire would be affected by this?  Grant Davis confirmed that of the 202 primary schools, 29 secondary and 4 special schools in 2021-22, 30 schools are funded under sparsity for 2021-22 (28 primary and 2 secondary) and for 2022-23 this would rise to 50 primary and 3 secondaries.  As Wiltshire is a rural county 1 in 4 (25%) would benefit from the planned changes to sparsity funding.  

The Salisbury Diocesan representative was keen to ensure that members were aware that sparsity is a big issue.  In Dorset this has been a key decision too and they were keen to support at funding at NFF levels.  This was to ensure that we achieve for the most impact for children in small and rural schools.

Grant Davis agreed that the impact for Wiltshire was huge that national recognition included the significant number of responses from Wiltshire schools was good. 

A primary academy representative asked if Officers knew which schools would now become eligible for sparsity funding.  Grant Davis reported that they had carried out some indicative modelling based on the October 2020 and could share the details of those schools with Schools Forum members at our next meeting. 

Resolved:

That Schools Forum note the report.