Agenda item

Consideration was given to a report of the Director of Resources and the Assistant Director of Education, which outlined the Dedicated Schools Grant (DSG) outturn position for 2022-23 and provided an update of the budget position for the financial year 2023-24.

It was noted that the financial implications statement on the report title page should be amended from £3.606m to £3.306m and that there was a discrepancy in the header of Table 2 of the report, which should have displayed brackets around surplus rather than deficit.  Members noted the amendments and it was agreed that the agenda pack would be updated to reflect these changes.

The outturn position against the 2022-23 DSG was provided for Members and it was noted that there was an overall deficit of £0.063m.  Members were made aware that the surplus of (£0.353m) on the Schools Block related to (£0.355m) unallocated growth, a minor variation of (£1k) on an academy conversion, which was offset by a £3k retrospective business rates charge.  It was proposed that any surplus from the Schools Block be used to contribute towards the DSG deficit. 

Continued pressure on the High Needs Block was discussed and Members were made aware that this had closed with an in-year deficit of £1.972m, which reduced to £1.018m with the (£0.954m) Schools Block transfer.

It was explained that the Early Years Block surplus, which was currently (£0.617m) related to (£0.614m) in-year surplus and (£4,000) additional funding from the final 2021-22 Early Years allocation from  DfE.  Estimations suggested that there would be a funding reduction of £0.016m for the 2022-23 financial year as the final settlement would be based on census date from January 2023.  With this in mind, it was noted that the final settlement for Early Years would be announced in July/August 2023 and that the surplus would contribute to the overall DSG deficit.

Provisional Early Years data from 2022-23 was presented to Members with distribution/spend based on actual payments to provider over the summer, autumn and spring terms for 2,3 and 4 years olds.  It was noted that the final outturn indicated an underspend of (£0.494m) for 3 and 4 year olds and (£0.084m) for 2 year olds.  Members were also made aware of an estimated surplus of (£0.028m) for the Disability Access Fund and an overspend of £0.026m on Early Years Pupil Premium.  Early Years participation rates were also discussed.

Members were informed that there was an overspend of £0.127m on the SEND Inclusion Fund (SENDIF), which was offset by an underspend of (£0.149m) on the centrally retained budget.  It had been agreed during the previous meeting of Schools’ Forum that the SEND Inclusion budget be increased for 2023-24 to meet continued demand in this area.  This had been afforded through an increase in funding rates from DfE and would be closely monitored, with updates provided throughout the financial year.

The current DSG settlement for 2023-24 and forecast distribution/spend was provided for Members.  This included the £0.694m (0.345%) transfer from the Schools Block to the High Needs Block, which had previously been agreed and actioned.

The forecast surplus of (£0.010m) on the Schools Block was explained as relating to unallocated growth and, again, it was proposed that any surplus would contribute towards the DSG deficit.

A forecast deficit on the High Needs Block of £3.538m was outlined for Members, which would reduce to £2.845m with the (£0.694m) Schools Block transfer.  It was noted that this forecast included £2.514m of estimated in-year growth, which related to increasing numbers of EHCPs and newly planned resource bases.

Members were made aware that there was a forecast surplus of (£0.345m) on the Early Years Block.  This would be updated in in July/August, when it was anticipated that there would be a reduction of £0.049m to reflect January 2023 census data.

Early Years forecast data for 2023-24 was provided for Members.  It was noted that, when calculating the base rate to providers for 3 and 4 year olds, the decision had been taken to uplift the rate by the full £0.14 per hour increase, which had been received in funding.   Members were made aware that participation rates would be monitored and updates provided throughout the financial year.

Details of the closing position on the DSG reserve for 2022-23 and the estimated position of the DSG at 31 March 2024 were provided for Members, who were informed that, in 2022-23, the deficit had increased to £3.306m.  It was explained that this was due to the overspend on the High Needs Block and the cap on High Needs Block funding gains, which was 7%.

It was suggested that, if 2023-24 forecast materialised, there would be a deficit of £5.846m on the DSG.  With this in mind, it was noted that the council was engaging with DfE in the form of the Delivering Better Value programme in order to identify and implement high impact mitigations to reduce this deficit and regular updates would be provided.

Members were made aware of changes to the updated Scheme of Financing and advised that copies of this would be distributed to all maintained schools and updated on the council’s website.  They were also advised that there had been reforms in the National Funding Formula (NFF), which were due to begin in the 2024/25 financial year.  These reforms would apply to split site and growth funding, see a national approach to calculating indicative SEND budgets introduced and promote further sector engagement on related funding issues.

It was stated that DfE planned to allocate split site funding nationally to mainstream schools based on a formula factor made up of a ‘basic eligibility’ element and a ‘distance eligibility’ element from

2024-25 and, although no schools in Tameside currently qualified, details of the eligibility criteria were outlined.

Members were also made aware that, DfE planned to introduce a set of national criteria and minimum standards for the allocation of growth funding by LAs in order to improve consistency and predictability.  It was noted that the minimum requirements for 2024-25, rather than fully determined

Standards, would allow more flexibility where commitments for growth funding had already been made for a number of future years.

It was further outlined that there would be revisions to the NFF’s current growth allocation methodology used to allocate funding to LAs on the basis of both growth and falling rolls.  It was noted that DfE planned to work with stakeholders in order to refine the standard criteria that would be used to fund schools with significant increases in pupil numbers or falling rolls from 2024-25.  As part of this, it was also suggested that LAs would have greater flexibility to use growth funding to repurpose surplus space to create SEND units or Resourced Bases in mainstream schools.

Early Years Spring 2023 Budget Announcements were outlined for Members, including transformative reforms to childcare for parents, children, the economy and women.  It was suggested that this new offer would empower parents, allowing them to progress their careers and support their families and noted that the new entitlements would be introduced in phases:

• From April 2024, all working parents of 2-year-olds can access 15 hours per week;

• From September 2024, all working parents of children aged 9 months up to 3-years old

can access 15 hours per week;

• From September 2025, all working parents of children aged 9 months up to 3-yearsold

can access 30 hours per week.

Members were informed that the budget had also announced additional funding of £204m from September 2023, rising to £288m in the financial year 2024-25, to increase the funding paid to nurseries for the existing free hours offers.  It was explained that this investment would allow the national average rate for local authorities for 2 and 3 year olds to increase by 30% from the current national average rate of £6 per hour to around £8 per hour from September 2023. The national average 3 to 4 year old rate for local authorities would rise in line with inflation from the current national average rate of £5.29 per hour to over £5.50 per hour from September 2023.

It was confirmed that the £600 start-up grant for childminders, who register with Ofsted, and £1,200 for those who register with a childminder agency, would be payable to any individual who had completed their childminder registration on or after 15 March 2023 and that new childminders would be able to apply for the grant from autumn 2023.

RESOLVED

That the contents of the report be noted and supported