Agenda item

To consider the attached report of the Assistant Director, Finance and the Assistant Director, Education.

Consideration was given to a report of the Assistant Director of Finance and the Assistant Director of Education with regard to Schools Block Funding for 2021-22.

It was explained that a consultation on the proposals of this report had been circulated to all schools and Chairs of Governing Bodies.  Due to the timing of this consultation, the results had not previously been published.  However, a briefing paper outlining the results was shared with members of the Forum in advance of the meeting and a summary was provided.

The consultation was launched on 22 October 2020 and closed on 11 November 2020.  There were 21 respondents in total.  However, 2 of the respondents did not state which school they were from so had been discounted .  In addition, there were also 2 schools in which 2 responses were received (both providing the same response).  As a result, the response rate was reduced to 17 schools from a potential 98 (17% response rate).

The results of the consultation are detailed below:

Q1.  Do you support a 0.5% transfer from the Schools Block to the High Needs Block (as agreed in principle with Schools Forum) whilst adopting NFF 2021-22 rates and accepting a 0.5% MFG and 3.21% Gains Cap?

Q2.  Do you support increasing the transfer to 1%, if we were still able to adopt the NFF rates for 2021-22, and obtain approval from the Secretary of State through the disapplication process?

The provisional allocation for 2021-22 was shared with Forum members and allocations were compared with the 2020-21 position.  It was highlighted that, of the £12.5m increase on the Schools Block, £7.5m related to the Teachers’ Pay and Pension Grant, which had been rolled into DSG funding.  It was further explained that this £7.5m was protected and must be passed directly on to schools, with the remaining £5m increase representing a 3% increase on 2020-21 cash levels.

Forum members were informed that there were increases in funding across all blocks for Tameside MBC, which was positive.  However, it was also highlighted that the pressures on High Needs exceeded the increase that the LA is set to receive.  With regard to this High Needs pressure, it was explained that Tameside had received the maximum provisional funding increase possible, capped at 12% (before Import/Export adjustments and Recoupment).  However, without this cap at 12%, Tameside would have received an additional £3.1m in 2021-22 and, for context, it was highlighted that the 2020-21 cap was £2.6m.

As previously reported, the estimated position on High Needs for 2020-21 was an in-year overspend of £3.543m.  It was explained that this was after the £0.85m transfer from the Schools Block (the position would have been an in-year overspend of £4.393m without the transfer).  Members were informed that, in 2021-22, whilst the additional increased funding was welcomed, it would still leave a shortfall of £1.775m (based on current estimates) and would not take into account the 2020-21 expected DSG deficit estimated to be £3.638m.

It was explained that this increase in the Schools Block funding would allow all schools to see an increase in their pupil led funding and, as previously reported, the minimum funding guarantee (MFG) of +0.5% to +2% would mean that all schools would see at least 0.5% increase on pupil-led funding.

With regard to the National Funding Formula (NFF), members were made aware that rates had increased by 3% in the majority of instances, except Free School Meals (FSM), which had increased by 2% and a summary of these rates was provided. 

A detailed analysis of school-level funding was provided for members and they were asked to note that any figures provided would not be the actual figures received for the 2021-22 financial year as these figures were all indicative and subject to change.  These provisional calculations were based on the October 2019 census data, updated to include the 2019 IDACI data.  It was explained that, once the LA had received the updated census data for October 2020 (in December 2020), final calculations would be produced.  Members were also informed that the premises elements of funding had been updated to reflect an uplift in RPIX for PFI of 1.56%.

Members of the Forum were provided with detailed information on the 2020-21 funding allocation and details of the proposed funding scenario for 2021-22.  This scenario would allow a transfer of 0.5% (£0.869m) from the provisional Schools Block allocation to the High Needs Block, whilst continuing to adopt the NFF rates for 2021-22.  Based on the provisional School Block allocation the MFG would be set at 0.5% and the gains cap at 3.21% to allow the transfer to take place.  They were also provided with information on the impact of the changes introduced by DfE on the IDACI data and inclusion of the Teachers’ Pay and Pension grants for further context.

It was explained that the LA had spent the last few years moving to the NFF.  This had been with the support of schools, in line with DfE’s instruction.  With this in mind, the importance of adhering to NFF as closely as possible was highlighted.  It was explained that the movement of 0.5% would not fully support the High Needs pressure for 2021-22 and, if there was sufficient funding to allow a 1% transfer (£1.738m) whilst maintaining the NFF rates, the LA would like support from Schools to do this.  Members were informed that this would require approval from the Secretary of State through the disapplication process.  Members were also reminded that this was an annual decision and so would apply to 2021-22 only, at this stage.

RESOLVED

 (i)   That a 0.50% transfer from Schools Block to High Needs Block in 2021-22 (at a minimum) be approved.

 (ii)  That a disapplication request to the Secretary of State to transfer 1.00% (if affordable) from the Schools Block to the High Needs Block be approved.