Agenda item

Report ED16012

The Sub-Committee considered a report providing information on the Dedicated Schools Grant 2016/17 and how it would be allocated. 

The Dedicated Schools Grant was made up of three blocks comprising High Needs, Early Years and Schools.  In December 2015, the Department for Education had released the final Dedicated Schools Grant for 2016/17 based on the final units of funding that were released in July 2015.  Dedicated Schools Grant income was generally in line with what was expected and what had been received in previous years.  In 2015/16, a balanced budget had been set at the start of the financial year which took into account planned expenditure to be funded from the unspent Dedicated Schools Grant carried forward from previous years as agreed by the Schools’ Forum.  Based on the most recent estimates it was likely that the Dedicated Schools Grant budget would be overspent by approximately £52k for 2015/16, and by approximately £4m for 2016/17 due to a range of pressures including the need for bulge classes and the demand for special educational needs provision. 

The Local Authority was very concerned about this situation as it demonstrated that the current budget was not sustainable and that further savings would need to be identified in future years.  Officers were working to identify potential savings within the High Needs and Early Years blocks, as well as within the central spend in the Schools block.  However, it was anticipated that some savings might also need to be found within the Schools block, and the Schools’ Forum had been asked to consider this as part of the Formula Review in preparation for the introduction of the National Funding Formula.

The Finance Manager reported that the Schools’ Forum had discussed the Dedicated Schools Grant 2016/17 at its meeting on 14^th January 2015.  In recognising the funding pressures, the Schools’ Forum had agreed to expand an existing working party initially formed to review the funding formula for 2017/18 to include Early Years and Special Schools representatives and to work to review Dedicated Schools Grant expenditure as a whole.  The Working Party would be supported by Local Authority Officers to identify areas where potential savings could be made and how this would impact on provision, and would report its findings to the meeting of the Schools’ Forum on 14^th April 2016.

In considering the report, the Chairman was concerned at the initial projected overspend of approximately £4m for Dedicated Schools Grant for 2016/17 for which savings had been identified to mitigate.  There were also measures in place to help contain the future projected overspend, such as the planned alternative provision at Beacon House which would reduce the need for high cost out-of-Borough placements.

In response to a question from the Portfolio Holder for Education, the Head of Schools’ Finance Support confirmed that schools managed their finances differently.  Larger schools had their own finance officers and multi-academy trusts often shared finance officers.  Part of the remit of the Schools’ Finance Support service was to provide financial support to schools and the service had a high level of take up, particularly from smaller schools and academies.  The Schools’ Finance Support service also delivered regular finance forums and training events to share best practice in school finance across Bromley schools.

Councillor Nicholas Bennett JP queried how the Pupil Premium had been impacted following the introduction of free school meals for all Key Stage 1 pupils.  The Head of Schools’ Finance Support reported that schools were concerned that there had been a reduction in take up of Pupil Premium by some eligible pupils and were working to engage with parents and carers to encourage them to apply for the funding which targeted the gap in attainment for pupils who were eligible for free school meals.  When sufficient data was available, modelling would be undertaken to identify how free school meals had impacted the take up of Pupil Premium, which was particularly important to schools as it attracted further deprivation funding which could have a significant benefit to the achievement of the most vulnerable pupils.

RESOLVED that:

1)  The Dedicated Schools Grant allocation for 2016/17 be noted;

2)  Members’ comments regarding the proposed allocation and for reducing expenditure in future years be noted; and,

3)  The Portfolio Holder for Education be recommended to approve the Dedicated Schools Grant allocation to the Schools Budget for 2016/17.