Agenda item

Report ED13100

Members of the Forum considered a report providing an update on the proposed changes to the Local Authority Funding Formula based on the outcome of consultation undertaken with schools.

The Department for Education had recently issued further guidance to assist local authorities and Schools’ Forums in planning the local implementation of the reformed funding system for 2014/15.  Changes included a reduction in the upper limit of the lump sum to £175,000, the potential use of a different lump sum for primary and secondary schools, and the attainment measure for secondary schools changing to target pupils achieving Level 3 or below in either English or Maths rather than in both.

The way that these changes to the funding system would impact Bromley had been considered by the Schools’ Forum at its meeting on 18^th July 2013.  It had been agreed that the lump sum provided to secondary and primary schools would be adjusted to £175,000, but that there would be no other changes for primary schools.  For secondary schools the changes would be more significant as the number of pupils eligible for funding under the new attainment measure had increased from 1249 to 3441 pupils.  As a result of this, and following consultation with the Schools’ Forum Working Group, it had been proposed that the per pupil sum for attainment be adjusted to reflect the increased demand with the allocation of £2,500 for pupils not attaining in English and Maths in 2013/14 reduced to £1,250 in 2014/15 for any pupil not attaining in English or Maths.  It had been thought that pupils who were not attaining in both subjects would receive £2,500, which was equivalent to the 2013/14 funding allocation, however recent guidance from the Department for Education advised that the same amount of funding would be allocated to each pupil, whether they were achieving Level 3 or below in English, Maths or in both.  Additional funding in excess of £1m would be required to support the proposal to allocate £1,250 as the per pupil attainment measure, and the Schools’ Forum Working Group had considered whether this funding could be taken from the Age Weighted Pupil Unit or from the lump sum.

In considering how to fund the change to the attainment measure for secondary schools, seven consultation responses had been received from schools in the Borough.  One response from a primary school supported funding the change through the Age Weighted Pupil Unit and noted that primary schools could not afford a further reduction in budgets.  A late response to the consultation had also supported this option.  Two responses from secondary schools supported the use of a zero lump sum.  The remaining four responses highlighted that Bromley Head Teachers did not support either of the proposed funding mechanisms and requested that the Schools’ Forum consider the issue in more detail.  Mrs Karen Raven had subsequently circulated an alternative solution to secondary schools which proposed that the secondary lump sum be retained by schools and that the existing £250,000 fund attributed to the attainment measure would be reallocated over the increased number of students, providing a reduced allocation of £907 per pupil with the minimum funding guarantee applied as appropriate.  A total of 12 Secondary Schools had indicated their support for this proposal to either Karen Raven or Aydin Önaç.

The Chairman advised members of the Forum that he had received a letter from the Head Teachers of Langley Park Boys and Girls Schools voicing concern around how the proposed models developed in response to the changes to the funding system would impact their school budgets.

In considering the outcome of the consultation on the 2014/15 funding review, the Chairman noted that there were two issues to consider.  These comprised the level at which funding should be set for the attainment measure and whether the secondary lump sum should be retained for 2014/15.

The Head of Schools Finance Support advised members of the Forum that to support the identification of an appropriate level of supplement for pupils who were achieving Level 3 or below in English, Maths or in both for 2014/15, the 2013/14 eligible pupil figures would be used.  This agreed per pupil amount would then be allocated to those pupils that qualified in 2014/15, which could total more than the £250,000 fund agreed by the Schools’ Forum to be set aside for the attainment measure if there were more pupils eligible for the additional funding than in 2013/14.

A spreadsheet was provided to members of the Forum that demonstrated the difference in funding for all Bromley secondary schools using the proposed attainment measure figures of £1,250 and £907, both with and without the £175k lump sum, against the 2013/14 budget.  In considering this financial data, it was confirmed that the Minimum Funding Guarantee moderated the impact of any changes to a School’s budget to no more than a 1.5% change in overall budget in any one year.  Those schools with a higher proportion of students eligible under the new attainment measure would benefit most from the change, although it was noted that schools with a large number of students who had previously received funding at the higher level would likely see a reduction in funding.

In discussion, the Chairman highlighted the potential to reduce the value of secondary Age Weighted Pupil Unit to offset any increased costs incurred through the level of attainment measure set for 2014/15, but noted that this would cause other issues.  Karen Raven underlined that it was more important to work within the funds already identified for the measure of attainment than access additional funds through other measures which might be destabilising for the overall budget.  AydinÖnaç supported the need to work within existing funds and noted that pupils of all abilities should receive a fair share of the funding available to support their education. 

As the decision was in relation to the funding formula, all schools representatives and the Early Years Provider were entitled to vote.  Following a vote, it was unanimously agreed to set the measure of attainment for secondary pupils at £907 for 2014/15.  Following a further vote it was unanimously agreed to retain the £175,000 lump sum for secondary schools.  Members also noted the outcome of the consultation on the 2014/15 Funding Review, which had been undertaken both for the initial proposals to fund measure of attainment and informally with secondary schools for the alternate option developed by Karen Raven.

RESOLVED that:

1)  The measure of attainment for secondary pupils be set at £907 for 2014/15;

2)  The £175,000 Lump Sum be retained for secondary schools; and,

3)  That the outcome of the consultation with schools on the 2014/15 Funding Review be noted.