Agenda item

This report seeks the Cabinet Member approval for changes to the Council’s local schools funding formula for the 2020-21 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 2020-21 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 2020-21 financial year, and these are set out in the recommendations below.

Following approval, the funding allocation for the year 2020-21 must then be submitted to the Education and Skills Funding Agency (ESFA) via the Authority proforma tool (APT) by 21^st January 2019.

Following a meeting of the Haringey Schools’ Forum on 16^th January 2020, updated recommendations were put forward. These were put to the Cabinet Member in the form of a tabled addendum with legal and finance comments accompanying the updated recommendations.

RESOLVED

1. To agree the (Model 1 – Option A) as the local schools funding formula for the 2020/21 financial year.
2. To approve Minimum Funding Guarantee (MFG)*: Set at 1.35% and capping at 1.84% per pupil.
3. That the Growth Fund be maintained at £932,000 for the financial year 2020-21.
4. That there be no transfer from Schools Block to High Needs Block in 2020-2021.
5. To approve the transfer of £122,000 to Central Block from Schools Block DSG as a top slice mechanism for statutory service relating to the Education Welfare Services.
6. To approve de-delegation of £179,000 for a support fund for School’s in Financial Difficulty.
7. To approve de-delegation of trade Union Facilities Time of £117,000.

Reason for recommendations

As set out in the published report, in addition de-delegation of funding is charged to maintained schools only to provide services to these schools. It is part of the local funding formula that the School’s Forum agrees but this was not included in the published Cabinet Signing report but has been agreed by the Schools Forum.

The original funding models were calculated based on provisional allocation published by the ESFA.  

However, when ESFA published DSG allocation for financial year 2020-21, Haringey Council was awarded additional funding for the school budget which will be distributed by raising MFG level from 0.74 to 1.35 to ensure schools received maximum funding for the financial year.

Alternative Options Considered.

As set out in the published report, the alternative option to use Model 2[Option B] This option / model was not agreed with by the Schools Forum on the 16^th of January 2020. The consultation results showed a strong preference for Model 1[Option A]. Model 2 contained: Minimum Funding Guarantee: Set at 0.54% and capping at 0.70%. High Needs Block Transfer: 0.25%

Additionally, the choice to disagree top-slicing the Education Welfare Service contribution of £122k from the Schools Block and transferring to the Central Services Block. This was not approved by the School’s Forum and not supported in the consultation exercise.