Report attached

The Board considered a report from the Senior Finance Officer providing an update on the latest Dedicated Schools Grant (DSG) budget 2019/20 following the applied annual July 2019 funding update changes made by the Department for Education (DfE).

The Board discussed the report and commented that the total amounts continue to remain below inflation when combined with the pupil premium nationally and the significant cost pressures on all schools in the borough (e.g. increases in the national pay for teachers).  The Board also reiterated its concerns regarding the funding formula and that in real terms there has only been a 1% increase in funding over the last seven years.

Resolved:

1. With regard to individual school’s budget (ISB) planning for 2020/21, to continue on the trajectory of adopting the principles of the National Funding Formulae (NFF), as referenced in 5.2 to 5.6 of the report, the following be agreed:

1.1 The minimum per pupil 2020/21 funding levels be set at £3,750 for primary schools and £5,000 for secondary schools (which is based on the nationally defined pupil led funding factors including lump sum);

1.2 Any school that attracts their core NFF funding factors (i.e. with no MFG or funding floor protections applied), to benefit from the NFF applied 4% increase to those core factors; and

1.3 Ensure all schools (except those who will receive a greater percentage funding increase per pupil from either recommendation 1.1 or 1.2 above) are modelled to receive the same and remaining maximum available percentage pupil led funding increase, which is up to 1.84% from the individual schools NFF 2019 to 2020 baseline (but also has to be a minimum of 0.5%).  The ability to award the maximum 1.84% remains caveated, with any Education Board consideration and therefore decision applicable or available in relation to recommendation 2.4 below.

2. That the update to the DSG 2019/20 budget allocations for both early years and high needs funding following the DfE’s July 2019 funding updates (as referenced in sections 7.2 and 8.1 of the report), be noted.

3. That, as per the annual local DSG funding cycle, the actual 2020/21 funded amounts per pupil for each school, based on the principles agreed in 1.1 and 1.3 above, will therefore be presented:

3.1 To the Education Board in December 2019, illustrated using the 2019/20 school block data set but with proposed funding increases shown per pupil and any resulting or possible considerations relating to 4 below, although caveated that those schools that will benefit from the 4% NFF core funding factor increase (as per recommendation 1.2 above), in terms of their overall per pupil amount, cannot actually be confirmed until January 2020.

3.2 For Education Board in January 2020 the final ISB funding allocations (also illustrated per pupil) will be presented based on the updated School 2020/21 block data set.

4. That, as referenced in sections 5.6 and 9.5 of the report, any recommendations for Education Board considerations, on the historic commitment element of the 2020/21 Central Block funds will be presented to the Board on 17^th December 2019.

ACTION: Paul Grout/Resources Sub Group