Agenda item

This report seeks the Cabinet Member approval for changes to the Council’s local schools funding formula for the 2019-20 financial year in line with the Schools National Funding Formula set out by the Department for Education (DfE).

The Chair of Overview and Scrutiny has agreed that the call-in procedure shall not apply to this decision as the action being taken is urgent and time critical and any delay in implementation caused by the call-in procedure would seriously prejudice the Council's or the public's interests. This is in accordance with Part 4, Section H, Paragraph 18 (a) and (b) of the Council Constitution.

The Cabinet Member for Children and Families considered a report which sought approval for changes to the Council’s local schools funding formula for the 2019-20 financial year in line with the Schools National Funding Formula set out by the Department for Education (DfE).

Following consultation by the Council with all maintained schools and academy schools in the borough, Schools Forum asked the Council to continue the existing local school funding formula. However, given the nature of the funding settlement, a number of adjustments are required to the local funding formula for the 2019-20 financial year, and these are set out in the recommendations below.

Following approval, the funding allocation for the year 2019-20 must then be submitted to the Education and Skills Funding Agency (ESFA) via the Authority proforma tool (APT) by 21 January 2019.

RESOLVED that:

Following agreement at Schools Forum on the principles for distributing the 2019-20 Schools Block funding, the following changes to the local schools funding formula for the 2019-20 financial year shall be approved:

(a)   revise the Growth Fund to £922k

(b)   transfer 0.25% out of the Schools Block into the High Needs Block

(c)   set the Minimum Funding Guarantee (MFG) at +0.2% per pupil

(d)   after which, if there was a surplus, to move any further amounts necessary to increase the amount to be transferred from the Schools Block into the High Needs Block up to the maximum of 0.5% permissible.

Alongside these changes to the formula, it should be noted that Schools Forum has agreed to transfer 0.25% (£490k) from the Schools Block to the High Needs Block.

The Council’s Schools Forum has set Growth Fund’s to £922k for 2019-20 to enable local authorities to respond where significant growth in pupil numbers occurs in-year and is not immediately recognised by the lagged funding system.

Reasons for decision

The Council is legally required to set the local schools funding formula and must submit this to the ESFA by 21^st January 2019.

The recommended changes to the local funding formula follow:

(a)        Consultation with schools on their preferred option (based on initial modelling from ESFA, which has since been revised) in November 2018.

(b)        Discussion at Schools Forum in early December 2018, where the principles underpinning how the funding formula should operate were agreed and minuted in light of the response to the consultation.

(c)        The final allocations have been agreed at December 2018 School Forum. The final school budget allocations are presented to the Schools Forum on 17th January 2019 for their approval.

Alternative options considered

Following consultation with the Schools Forum on 18th October 2018, all schools in Haringey were consulted on the proposed changes for 2019-20 to the Council’s Schools Funding Formula, with a deadline of 1 pm on 20th November 2018 for responses from Head teachers and Chairs of Governors. The following table shows 3 available options and total responses received for all three options – based on modelling of the Schools Block with the latest available information – were consulted upon:

TABLE A(i)

            MFG = Minimum Funding Guarantee

                HNB = High Needs Funding Block

            TABLE A(ii)

Despite the consultation supporting Option A, when it met in December Schools Forum accepted Option B in order to support the High Needs Block. It was also recognised that further work would be needed to reach the final funding formula once the ESFA confirmed the final allocation.