Agenda item

The report of Grant Davis and Bea Seggari (Schools Strategic Support Team) seeks ‘in principle’ decisions from members of Schools Forum with regards to the Wiltshire funding formula for the 2022-23 year.

Grant Davis (Schools Strategic Financial Support Manager) referred to the report which sought ‘in principle’ decisions from Schools Forum with regards to the Wiltshire funding formula for the 2022-23 year and highlighted the following:

• Prior to the funding settlement being announced in mid December, a number of ‘in principle’ decisions were sought to help with the school budget preparations.  The 2022-23 year would be year 3 of the Governments pledge to boost schools funding, with an increase of £2.3 billion into the overall Schools block compared to the 2021-22 year;

• The Schools block DSG had been awarded an increase of 3.2% compared to the 2021-22 year.  It would be another ‘soft’ year with Schools Forum still retaining its role in determining the school funding allocation methodology.  The DfE had confirmed their intention to move to a ‘hard’ NFF but had not confirmed the timeline as yet;

• The DfE had announced the indicative DSG block allocations based on the October 2020 census and there was uplift of funding across the blocks (except for the early years block which allocations had yet to be announced);

• The key changes for the 2022-23 budget were as follows:

1. Overall, the DfE’s School funding budget is set to increase by 3.2%
2. Core pupil-led funding factors and the lump sum to increase by 3%
3. The ‘Minimum per pupil funding level’ to increase by 2%
4. The Free School Meals factor (for the costs of providing a meal for eligible pupils) to increase by 2%
5. Every school to receive at least 2% more funding per pupil, (setting the MFG at +2%)
6. Changes to Sparsity calculations and funding allocations
7. Using the previous October census for calculating Deprivation FSM6 funding rather than the previous January census (reducing the lag)

• The only mandatory factor for 2022-23 would be the application of the minimum per pupil funding levels, being £4,265 and £5,525 in Primary and Secondary respectively;

• The final formula would be presented at Schools Forum in January 2022 when the final allocations have been confirmed and subsequently to the full Council for political ratification and approval in February 2022.  Wiltshire would be fully funded on the basis of the NFF values and therefore would be in a position to fund schools fully using NFF values;

• The key funding decisions to be taken by Schools Forum for the 2022-23 year would include:

1. To apply all NFF factors in full
2. To apply the NFF sparsity values and methodology
3. To set the Minimum Funding Guarantee at +2.00% (in line with NFF)
4. To agree the de-delegation arrangements for maintained schools
5. To transfer 0.5% of the Schools Block to the High Needs Block

• Following a consultation regarding Sparsity funding, in support of small and rural schools, the DfE had increased the level of support through the sparsity factor. In 2021-22, 28 primary and 2 secondary schools had been eligible for sparsity funding and for 2022-23 under the new methodology this would rise to 50 primary and 3 secondary schools – a total of £1.7 million which was quite a significant increase which equated to less than 1% of the school’s block funding; and

• Initial modelling of the Schools Block demonstrates that the NFF is affordable, based upon the October 2020 census and therefore the full NFF could be implemented.

The Salisbury Diocesan representative commented that the sparsity funding should be fully utilised for Wiltshire’s small rural schools and the new methodology would mean that 1 in 4 schools will get a boost of funding that would benefit the children and staff in those schools.

Resolved:

That Schools Forum agree the following ‘in principle’ decisions for the formula factors to enable school budgets to be prepared ready for the 20 January 2022 meeting.

a. To apply all NFF factors in full

b. To apply the NFF sparsity values and methodology

c. To set the Minimum Funding Guarantee at +2.00% (in line with NFF).