Agenda item

The report of Grant Davis (Schools Strategic Financial Support Manager) seeks to provide an update following the Department for Education (DfE consultation with stakeholders regarding their reforms to the National Funding Formula (NFF), which took place between June and September 2022.

Members took a comfort break from 14.55pm – 15.05pm.

Grant Davis, Schools Strategic Financial Support Manager, provided an update following the DfE consultation with stakeholders regarding the reforms to the National Funding Formula (NFF), which took place between June and September 2022. The following was highlighted:

·       It was explained that as the Schools Forum had aligned itself with the current NFF, the impact of the new changes on Wiltshire schools were broadly minimal, and that many of these changes would take effect in the 2024-25 academic year.

·       With the aim of creating greater national consistency and convergence towards the NFF, the key areas of the consultation included:

o   Flexibility to transfer funding between Blocks.

o   National approach to calculating “Notional SEN”.

o   Growth and Falling Rolls funding.

o   Split Site and Exceptional Circumstances (rentals) funding.

o   Minimum Funding Guarantee and the Funding Cycle.

·       The outcomes of the consultation, as detailed within the report, and their impacts on Wiltshire schools, were then further explored and briefly noted below.

High Needs

·       Continued flexibility to transfer funding to High Needs Budgets through an application process to the Secretary of State. Further details on how it would work in practice were still being finalised, but upon the announcement, the Schools Forum would be updated at the next appropriate meeting.

·       A national approach to calculating schools’ indicative SEND budgets would be introduced and further consultations on the design and operation of the approach would follow in due course.

Growth and Falling Rolls Funding

·       It was noted that Wiltshire did not have a Falling Rolls Fund, however it had been announced that as part of the transition to a full NFF, establishing and implementing minimum criteria requirements with regard to the delivery of Growth and Falling Rolls Funding before moving to full NFF standards, could be required.

·       Further consultations and information on the changes to the two funding opportunities would follow in due course, at which point officers could begin undertaking more meaningful conversations on the topic.

·       The requirement for schools to be “Good” or “Outstanding” in order to be eligible to receive Falling Rolls funding would be removed.

·       Funding would now be calculated on both a ‘growth’ and ‘significant decline’ in numbers basis from 2024-25.

·       Growth and Falling Rolls Funding would be expanded to allow Local Authorities to fund the revenue costs associated with repurposing school buildings or school places, thus supporting Local Authorities to use surplus space to create further SEND Units or Resource Bases in mainstream schools.

·       Local Authorities would have the ability to retain some local flexibility in the allocation of growth funding to schools.

Split Sites

·       Split Sites Funding would be allocated on the basis of a formula factor made up of a ‘basic eligibility’ element and a ‘distance’ element.

Wiltshire had 6 split site schools, all of which would continue to meet the funding criteria.

·       It was being proposed that approximately 60% of the 2024-25 NFF lump sum was an appropriate amount for the split site allowance. This figure was still under review, but if confirmed, would lead to a 16% decrease in funding for these Wiltshire schools, as they were currently funded at 76% of the lump sum.

·       However, those schools which would lose funding, or were no longer eligible, would see their funding protected through the Minimum Funding Guarantee (MFG).

Exceptional Circumstances (Rentals) Funding

·       This was explained as being for schools across the County who don’t have suitable accommodation for the provision of tasks such as holding whole school events or PE activities.

·       At present, where these schools spend more than 1% of their budget on renting such facilities, Wiltshire provided funding to help support this cost. However, the funding threshold was proposed to raise to 2.5%, thus impacting on those 7 schools eligible for Exceptional Circumstances Funding in Wiltshire.

·       Yet, it was reiterated that those schools which would lose funding, or were no longer eligible, would see their funding protected through the Minimum Funding Guarantee (MFG).

Minimum Funding Guarantee

·       During the transition to the direct NFF, Local Authorities still had the ability to continue to use their local formula for the purposes of determining the MFG.

·       A move to a simplified pupil-led funding protection under the direct NFF was being proposed, which officers welcomed, as it would simplify the calculation significantly, would improve the transparency of the funding system, and would make understanding the calculations more accessible for schools.

Funding Cycle

·       As it was recognised that schools and the sector needed early information to support their budget and strategic planning, this would continue with early information regarding the design of the subsequent year’s formula provided in July of each year.

·       A calculator tool was also in development, thus supporting schools, academies, and Local Authorities in estimating more accurate budgets.

·       The next steps and a brief breakdown of the impact of the changes in Wiltshire were then referred to, as per the report.

·       The importance of the role of the Schools Forum was emphasised in spite of some of the reforms discussed.

Following which, it was:

Resolved

The Schools Forum noted the DfE’s response to their consultation on reforms to the NFF.