Agenda item

To consider the attached report of the Assistant Director, Finance and the Director, Education (Tameside and Stockport)

Consideration was given to a report of the Assistant Director of Finance and Director of Education (Tameside and Stockport), which outlined the arrangements concerning the Dedicated Schools Grant (DSG) funding for 2022-23 and details of the supplementary grant provided to address increased costs to schools.

Members were informed that a provisional DSG settlement for 2022-23 of £240.507m was received on 16 December 2021, with accompanying essential data released on 20 December 2021.  A detailed breakdown of this settlement for the four blocks of DSG was provided, alongside details of supplementary funding.

It was noted that the Schools Block had seen an increase of £7.662m in relation to an increase in pupil numbers, uplift for RPIX on PFI and an increase in DfE rates.  It was also explained that the increase of £3.421 on the High Needs Block was in relation to an increase in pupil numbers and per head gain as a result of the National Funding Formula.

With regard to Early Years funding, it was noted that there had been a reduction of £0.529m in this area due to reducing numbers offset by an increase in DfE funding rates, whilst the Central Services Schools Block had seen a small increase of £0.068m, relating to an increase in pupil numbers and DfE funding rate.

Details were provided on how the Schools Block funding, which totalled £190,743, had been calculated by DfE,.  It was highlighted that business rates were estimated and that, in contrast to previous years, this would be removed from Tameside’s allocations and retained by the DfE, who would pay this to rating authorities on behalf of all Tameside’s schools and academies. This would leave a total allocation within the Schools Block of £188,731.

In line with previous consultation, Members were informed that the Minimum Funding Guarantee (MFG) had been set at 0.5%, whilst the Gains Cap had been set at 4.61%.  It was noted that, any gain above this, would be used to partly offset the MFG and allow a balanced Schools Block budget to be set.

Members were advised that the Growth Policy had been agreed by School’s Forum in 2019 and this continued to be the method used for allocating explicit growth.  It was explained that the estimated Growth Fund required in 2022-23 would be £1.3m and a detailed breakdown both implicit and explicit growth was provided for Members.

Members were requested to support safeguarding in the borough by agreeing to provide a contribution of £2.99 per pupil towards the cost of Tameside Safeguarding Children Partnership (TSCP) for 2022-23, which would equate to approximately £0.105m.

Members were made aware that, in addition to the Schools Block DSG settlement, DfE had announced a supplementary grant for mainstream school in order to support the cost of the Health and Social care Levy alongside wider costs.  It was explained that this would be paid as a separate grant for 2022-23 and that it was the DfE’s intention for this to be included in the DSG allocation from 2023-24.  However, it was noted that the final figures would not be provided until spring 2022.

Outcomes of the Schools Funding Consultation were shared with Members as follows:

a.    Support was given for a 0.5% transfer from the Schools Block to the High Needs block.  67% (20 respondents) supported the transfer, 33% (10 respondents) did not.

b.    Support was not given for a 1% transfer.  74% (23 respondents) do not support this proposal, 26% (8 respondents) did support the transfer

In relation to these responses, it was noted that a number of schools had cited increasing cost pressures in schools arising from term time only costs and increased national insurance contributions.  It was also noted that some schools did not believe, even if schools supported the 1%, that the Secretary of State would allow it. 

In relation to the High Needs Block, it was stated that the provisional 2022-23 High Needs Block allocation of £31.617m (before academy recoupment) had been released and explained that this represented an increase in funding (12%) from the previous year.  It was also stated that this included an additional £0.350m to cover the growth in pupil numbers. 

In addition, Members were made aware that the Local Authority had also received supplementary funding of £1.300m.  It was explained that this extra funding recognised the additional costs, which local authorities and schools would face during the coming year, including the Health and Social Care Levy, as previously stated.

Changes in the settlement compared to 2021-22 were outlined for Members and it was noted that the allocation was subject to further adjustments, including:

·         The outcome of the Place change request in November 2021 which adjusts recoupment of academy places in September 2022, an expected adjustment to funding of £0.298m is included.

·         Import and Export adjustments to reflect cross border movement of pupils living in one borough and accessing provision in another

A detailed breakdown of the number of current and commissioned places for special schools and resourced units was presented and Members were advised that there would be ongoing conversations with Tameside Pupil Referral Service (TPRS) with regard to the commissioned numbers for September 2022.

With regard to the projected position for the High Needs Deficit, a detailed forecast was provided, which outlined the budget forecast, after the 0.50% transfer from schools for 2022-23 and highlighted the potential impact of the expected growth up to 2025-26.  Members were advised that an update on the recovery plan would be brought back to Schools Forum at a future meeting.

Members were provided with information in relation to the current funding settlement for Early Years 2021-22 and 2022-23.  It was noted that confirmation of the basis of the settlement for the provisional 2022-23 information was being sought and that this would be updated based on January 2022 and January 2023 census data.

The reductions in funding for 3 and 4 Year Olds and 2 Year Olds was explained, along with the increases in funding for Early Years Pupil Premium (EYPP) and Disabled Access Fund (DAF).  It was noted that consultation would need to be held with Early Years providers in relation to increased rates and Members were made aware than an additional Schools Forum meeting had been arranged for 15 March 2022 in order to agree the rates of allocation for this element of funding. 

Members were advised that, following this report, approval would be sought to centrally retain 5% (in line with national guidance) of 3 and 4 Year Old funding (£0.701m based on the current settlement) and £0.13 per hour (as a minimum) of 2 Year Old funding (£0.061m based on the current settlement). It was noted that this centrally retained funding would continue to support the following:

·         Early Education Funding Team

·         Family Information Services

·         Early Years Quality Improvement Team

·         SEN Team

·         Social Emotional and Mental Health service

·         Sensory Support

·         Making it REAL (Raising Early Achievement in Literacy)

In relation to the Central School Services Block (CSSB), Members were informed that the total allocation for 2022-23 was £1.182m, which was based on a per pupil element of £33.83 for ongoing duties.  It was noted that National Copyright School Licenses were also funded from this block and would equate to £0.189m. 

In line with DSG operational guidance, the support of schools’ Forum was sought for the central retention of funding in relation to: School Admissions; servicing of Schools Forum and; contribution to responsibilities that local authorities hold for all schools (formally the retained duties element of the ESG).  It was noted that, whilst budgets for these areas were still being worked on, the costs were estimated to be in excess of £1.102m, with £0.993m currently available to support these costs, with the approval of Forum Members.

Discussion ensued in relation to the High Needs Block, including the implications of import/export and how these challenges could be addressed.  It was acknowledged that work needed to continue in relation to ensuring improved standards of inclusion for SEND pupils within mainstream settings and the increase in specialist provision within borough. 

Further clarification was sought in relation to the rates for Early Years funding and Members were advised that this would be discussed in more detail at the next meeting of Schools’ Forum, which was scheduled for 15 March 2022.

RESOLVED

(i)         That the funding formula for mainstream schools as set out in Section 3 be approved.

(ii)        That the growth fund, as outlined in Section 3, be approved.

(iii)      That approval of 0.5% transfer from the Schools Block to High Needs Block, further to the outcome of consultation, be noted.

(iv)      That continued contribution to Tameside Safeguarding Children’s Partnership be approved.

(v)        That the allocation of the Central Services Schools Block be approved.

(vi)      That central retention of Early Years Funding be approved.