11 THE NATIONAL FUNDING FORMULA 2023/24 PDF 259 KB
Minutes:
Report CEF22062
The report provided details of the National Funding Formula for 2023/24 and the provisional allocations.
On the 19th July 2022, the Department for Education (DfE) published the illustrative 2023/24 funding for schools under the National Funding Formula. A technical note, published alongside the figures, set out the design of the NFF for 2023/24 for the Schools, High Needs, and Central blocks. Illustrative allocations for Early Years funding had been published separately as part of the early years’ consultation published on the 4th July 2022 and had been circulated previously.
2023/24 was the first
year of the transition to the ‘direct’ schools NFF,
whereby all mainstream schools across England would be funded
through the same national formula without allowing for adjustment
through local funding formulae. Therefore, in 2023/24, local
authorities would only be allowed to use NFF factors in their local
formula and, excluding the locally determined premises factors,
must use all NFF factors. Bromley were currently following the NFF
as far as possible and this was not an
issue. Highlighted changes were:
a) The 2022/23 supplementary schools grant would be rolled into the
NFF by adding grant figures to the baseline data and uplifting the
minimum per pupil values by the grant’s basic per pupil
values.
b) Local Authorities must move their local formula factor at least
10% closer to the NFF. Bromley were in the main already very close
to NFF figures and this should pose no significant issues
c) Local authorities must identify a notional budget for their
mainstream schools, that could help them comply with their duty to
meet the special educational needs of their pupils. Bromley already
did this through the APT.
For the Schools, High Needs and Central Blocks the National average overall increase was 2.7%. Bromley’s increase was 2.6%. The London average was 2.4%. Further details were set out in appendix 1 of the report.
In response to a question, the Head of Children Education and Families Finance confirmed that the 1.6% increase in funding was in addition to the supplementary grant which had been rolled into the baseline.
Members of the Schools Forum noted that as a result of increasing inflation (which was likely to reach 13%) an MFG of 0.5% amounted to a real terms funding cut per pupil of 12.5%. Members noted that was one eighth of a budget. The purpose of an MFG was to stop cliff edges and a proposed 0.5% with a cut of 12.5% amounted to a cliff edge and in light of this the MFG needed to be significantly bigger – more than inflation – to have any impact. Members of the Schools’ Forum highlighted that with high levels of inflation, school budgets were effectively being cut and the current position was unsustainable. It was noted that it appeared that the DfE had not supported salary increases for teachers and support staff and the resulting impact on schools would be significant with an even bigger impact on special schools. Ultimately there would ... view the full minutes text for item 11