Schools Funding Update and Budget Allocations Briefing

Bursars Briefing 8th November 2022 Katherine Vernon Schools Finance Manager Katherine.Vernon@wokingham.gov.uk

AGENDA Katherine Vernon Introduction Gemma Lenton Apprenticeship Update Joanne Jennings Procurement Update Ian Gough Update on Energy Matters Angela Blogg Schools Finance Updates Katherine Vernon Schools Block Funding Formula 2023-24 and Consultation AOB / Close

Analysis of Schools Block Income 2020/21 110.5m (includes 1.2m growth income) 2021/22 123.1m (includes 1.6m growth income) 2022/23 129.8m (includes 1.7m growth income) 2023/24 138.4m (Estimated)

Schools Funding Update 2023/24 Minimum Per Pupil levels (MPPL) have increased again: 2021/22 MPPL 4,180 5,215 5,715 2022/23 MPPL 4,265 5,321 5,831 2023/24 MPPL 4,405 5,503 6,033 Primary KS3 KS4 This is factor ensures that every school gets at least this amount per pupil and is calculated as taking the total allocation before MFG, less the business rates and dividing by your number on roll. Minimum Funding Guarantee (MFG) can be set between 0% and +0.5% per pupil and LA s can still use a gains cap. The MFG factor ensures that you gain at least the agreed percentage per pupil compared to the previous year and is calculated as the pupil led factors of the formula divided by the number on roll.

Schools Funding Update 2023/24 Moving closer to the direct NFF. ESFA have said direct NFF should be implemented by 2026/27. LAs must move all factor values within 10% of the direct NFF factor values. LAs must use all of the NFF factors. For Wokingham this adds an extra factor to Deprivation of Free School Meals. The Supplementary Grant received this year will be in the baseline for 2023/24, like the Teachers Pay and Pension Grant this year.

Task and Finish Group 2023/24 The Task and Finish Group have met twice to consider the principles for determining the 2023/24 school budget allocations. The group is made up of SBMs and Headteachers most of which are members of Schools Forum. Consultation to be sent out this week. Responses due Wednesday 16th November. Please read the supporting documentation before completing the consultation. ONLY ONE RESPONSE PER SCHOOL PLEASE. 5 areas of consideration:- o Principles of the Schools Block funding formula o Disapplication request for our all-through school o Transfer 0.5% of Schools Block funding to the High Needs Block o Notional SEN methodology o Growth Fund methodology

Consultation Section 1 Principles of formula MFG can be between +0% and 0.5%. Task and Finish Group propose the maximum +0.5% to ensure schools have the maximum protection Modelled using minimum NFF values, maximum NFF values and the actual NFF values. Using the minimum NFF rates allows more flexibility around the Growth Fund for new and growing schools and expansion classes

Consultation Section 2 Minimum per pupil level for all-through school As explained in the document the MPPL doesn t work for our all through school as they have less pupils per year in their primary classes compared to secondary classes, so they are protected at a lower amount than if they were two separate schools

Consultation Section 3 0.5% transfer to High Needs Block Number of EHCPs and complexity of needs continue to increase in Wokingham. We are forecasting a cumulative deficit of 15.7m in the HNB. 0.5% will equate to around 675k Safety Valve Programme - offered to LAs with the highest deficits. We are submitting a transformation plan detailing investment costs which will provide assurance to the DfE as to how Wokingham will meet the desired outcomes for young people with SEND whilst achieving a balanced budget within 5 years

Consultation Section 3 continued Costs elements of the plan indicate a spend of more than 10m. Schools asked to contribute to areas that will have most visible benefit to schools Review and recommission Specialist Outreach Support Test and Learn pilot of new Vulnerable Learners Panel Wokingham s Transitions Pathway Schools Forum voted to support the outcome of the consultation with schools

Consultation Section 4 Notional SEN Methodology Not extra funding, part of budget allocation Calculation has not changed since its inception 35% lump sum and 100% LPA Should cover the first 6k of EHCP funding and also meet costs of provision for SEN support pupils Average notional SEN budget across all LAs is 11.3% of schools block funding before MFG NFF would expect more factors to be used in calculation

Consultation Section 4 continued Two proposals in consultation: Factor Option 1 Option 2 Current Percentage used 4% 30% 100% 4.5% 25% 100% AWPU Deprivation Low Prior Attainment Mobility Lump Sum 100% 10% 25% 35% 30% Both options ensure all schools have a greater proportion in their notional SEN budgets than the current year

Consultation Section 5 Growth Fund Methodology Part of DSG income covers growth Financial Year 2020-21 2021-22 2022-23 Growth income received 1,181,526 1,625,436 1,663,746 Held back for Growth Fund 800,000 800,000 1,589,000 Anticipate around 2m is required for 2023/24 due to unprecedented growth in the borough Estimate 1.5m income for 2023/24 Amount held back before rest of funding distributed to schools through formula

Consultation- Section 5 continued Expansion classes currently funded on MPPL Used to be AWPU New and growing schools funded on a per pupil amount and lump sum to cover diseconomies of scale until full. Amounts not changed since 2018/19

Next Steps Once results known, WBC will send Disapplication requests to DfE for our all-through school if supported and 0.5% transfer to High Needs Block if majority of schools do not support it We will send indicative budgets to schools around Christmas once we have received the final DSG allocation and final October 2022 census data, so schools can see the potential impact of the changes to the funding formula for 2023/24 for their own school.

And finally AOB Thank you !