Schools Funding Updates and Budget Allocations 2024/25

Bursars Briefing 29th November 2023 Katherine Vernon Schools Finance Manager Katherine.Vernon@wokingham.gov.uk

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) 2023/24 143.3m (includes 1.6m growth income and 4.5m MSAG) (Estimated) 2022/23 146.8m

Schools Funding Update 2024/25 Minimum Per Pupil levels (MPPL) have increased again: 2023/24 MPPL 4,405 5,503 6,033 2024/25 MPPL 4,610 5,771 6,331 % INCREASE 4.7% 4.9% 4.9% 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. 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 2024/25 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. The Mainstream School Additional Grant received this year will be in the baseline for 2024/25, like the Supplementary Grant this year and the Teachers Pay and Pension Grant the year before.

Task and Finish Group 2024/25 The Task and Finish Group have met to consider the principles for determining the 2024/25 school budget allocations. The group is made up of SBMs and Headteachers most of which are members of Schools Forum. Consultation has already been sent out and closed. Thank you for all those schools that responded. We had 53% response rate. Areas of consideration were:- o Principles of the Schools Block funding formula o Disapplication request for our all-through school o Transfer of 1% of Schools Block funding to the High Needs Block

Consultation Section 1 Principles of formula MFG can be between +0% and 0.5%. Task and Finish Group proposed the maximum +0.5% to ensure schools have the maximum protection. Agreed by schools 92% 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. Agreed by schools 89% Should the LA look into setting up a Falling Rolls fund? 84% agreed If yes, do you agreed that the fund for Falling Rolls should be distributed at a rate per vacant place? 81% agreed

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. Agreed by schools 89% Disapplication sent to ESFA which has just been approved

Consultation Section 3 Transfer to High Needs Block Wokingham are part of the DfE s Safety Valve Programme which are offered to LAs with the highest deficits. We have submitted 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 6 years. This means we can receive 20m from the DfE over the life of the programme if agreed targets are met Number of EHCPs and complexity of needs continue to increase in Wokingham. We are forecasting a cumulative deficit of 12.176m in the HNB at the end of 2023-24. We had included an assumption of a 1% transfer from the Schools Block to the High Needs Block each year

Consultation Section 3 continued 1% transfer to HNB was consulted on with schools originally. 68% of schools did not agree with this, main reason was pressure on schools budgets Schools Forum asked us to model a 0.5% transfer instead, and that the model for allocating this funding be adjusted to reduce the impact on primary schools and to shift more of the financial impact onto secondary schools After many meetings with schools, over 90% of schools were in favour of a 0.5% transfer

Next Steps We are expecting our final Schools Block allocation from the DfE on the 15thDecember We will send indicative budgets to schools over the Christmas holidays for comments at the start of the Spring term so schools can see the impact of the changes to the funding formula for 2024/25 for their own school Final budget submitted to ESFA at the end of January Final budget allocations sent out to schools by the end of February 2024

Early Years Funding We are expecting information to be released from the DfE today about the extended free entitlement for 2 year olds from April 2023 and 9 months 2 years from September 2023 Provisional rates will be issued in December with the Schools Block allocation We will meet with the Early Years Task and Finish Group in Spring to model the hourly funding rates Final Early Years allocations have to be distributed by the end of March

And finally Any questions? Thank you !