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Dedicated Schools Grant (DSG) Funding Formula 2020-21

Meeting: 11/02/2020 - Schools' Forum (Item 60)

60 Dedicated Schools Grant (DSG) Funding Formula 2020-21 pdf icon PDF 452 KB

To consider a report on the arrangements concerning the DSG funding for 2020-21 from the Assistant Director of Education and Assistant Director of Finance.


Consideration was given to a report of the Assistant Director of Finance and Assistant Director of Education, outlining arrangements concerning Dedicated Schools Grant Funding for 2020-21.


It was stated that the provisional Dedicated Schools Grant settlement for 2020-21 of £212.246m was received on 19 December 2019 and that, in accordance with the Schools and Early Years Finance (England) (No 2) Regulations 2018, this must be deployed to schools and/or pupils.


A breakdown of the provisional settlement for each funding block was provided for members of the Forum, alongside detailed explanation of the increases for each funding block.  It was explained that the increase of 4.6% to the Schools Block was related to an increase in pupil numbers, uplift for Retail Price Index (RPIX) of 3.03% on Private Finance Initiative (PFI) schools and an increase in Department for Education funding rates.


With regard to the High Needs Block, the increase of 18.4% related to an increase in pupil numbers and per head gain linked to the National Funding Formula.  It was explained that the Gains Cap for 2020-21 was set at 17%, allowing Local Authorities to see an increase up to this amount.  With this in mind, it was further explained that Tameside were seeing an increase of 18.37% including growth in pupil numbers.


In addition, the report outlined the increases in the Early Years and Central Schools Services Blocks related to an increase in Department for Education funding rates and increased pupil numbers.


It was explained that the Schools Block was the largest element of Dedicated Schools Grant funding and provided the majority of funding for Mainstream Schools and Academies, with additional elements potentially being allocated through the Early Years and High Needs Blocks.  It was outlined that the Schools Block settlement from the Department for Education was made up of the following funding:

  1. A primary unit of funding (PUF) of £4,297.57
  2. A secondary unit of funding (SUF) of £5,458.85


This core school funding covered all pupil and school led factors in the funding formula.  Members of the Forum were made aware that Primary and Secondary units of funding were multiplied by the pupil numbers on Reception to Year 6 plus pupils aged 4 to 10 who were not assigned to a year group for Primary and pupils in Years 7 to 11, pupils aged 11 to 15, not assigned to a year group for Secondary.

  1. Premises – this includes Private Finance Initiative (PFI) and business rates which were based on historical spend
  2. Mobility – to support schools in which a high proportion of pupils first join on a non-standard date
  3. Growth – this is calculated using the difference between the Primary and Secondary numbers on roll on the October 2018 and October 2019 censuses


The report detailed that the total Schools Block settlement for 2020-21 was £169,918.  With regard to the proposed funding formula for Mainstream Schools, reference was made to the previous decision of Schools’ Forum to support a disapplication request to the Secretary of State to move  ...  view the full minutes text for item 60