Agenda item

This report updates the Schools Forum on the estimated funding available for 2023/24 following the recent Education and Skills Funding Agency (ESFA) Dedicated Schools Grant (DSG) finance settlement notification on 16th December 2022 and details the anticipated use of this money to fund schools early years and high needs. It then outlines future funding pressures the current DSG reserves position, de-delegation and the latest advice on energy costs.

Consideration was given to the report of the Head of Education Commissioning and School Organisation.

The Team Leader Schools and Designated Schools Grant presented the report which updated the Forum on the estimated funding available for 2023/24 following the recent Education and Skills Funding Agency (ESFA) Dedicated Schools Grant (DSG) finance settlement notification on 16 December 2022; detailed the anticipated use of that money to fund schools Early Years and high needs; and further outlined the future funding pressures, the current DSG reserves position, de-delegation, and the latest advice on energy costs.

The Chair thanked officers for the report and opened the Forum to questions and comments. The Following was discussed:

-       In response to a member, it was explained that following the increase in funding per pupil, overall Camden saw a real terms increase of 1.6%. Due to the local formula, the uplift in funding varied between schools (above and below 1.6%) to distribute funding outlined in Appendix 1. Officers confirmed they would provide information to members on the levels of increased funding by individual school.

Action By - Team Leader Schools and Designated Schools Grant

-       It was noted that for many schools there was a real terms decrease in funding due to fewer pupils, thus fewer pupils to receive per pupil funding.

-       In relation to section 2.14 Table 1, it was confirmed that the mainstream schools additional grant (MSAG) 3.5% per pupil rate would apply to each school.

-       In relation to section 5.1-5.2, it was confirmed there was £8 million in the DSG reserves. In response to a member querying if any of the reserve money could help fund the increasing Special Educational Need and Disabilities (SEND) needs, where schools were struggling to fund using existing budgets, it was confirmed that there were government announcements expected in relation to SEND funding. Additionally, officers stated that due to the levels of funding in the DSG reserves, it was appropriate that a discussion could take place through the Forum and with the Council in how the money should  be spent.

-       In relation to section 2.17 C, high needs block (HNB) allocations, members asked officers to present options and set out the parameters of how Schools Forum could use and manage the underspend budget. Officers agreed they would present a paper to the next meeting.

Action By - Team Leader Schools and Designated Schools Grant

-       In relation to section 4.6, a member noted that five Camden schools had a licenced deficit. In response to the member, it was confirmed that If any schools with a licensed deficit converted into an academy the deific would transfer to the Council, but unlikely to the DSG reserves. However, Camden schools were not able to hold a debt higher than 10% of their balance. Officers confirmed they would present the values at the next meeting. As described in section 4.6, schools were continuing to be advised to maintain a three year financial plan. While there were many schools currently presenting as surplus, the improving financial position over the pandemic was masking schools entering a worse position. Licensed deficits were tightly regulated and monitored by the Director of Children’s Services, the Head of Education Commission & School Organisation and Camden finance colleagues against a three-year recovery plan.

-       Officers confirmed that the DfE SEND green paper would be published in March, which would include HNB funding. Officers confirmed an update would be presented at the next meeting.

Action By - Interim Director of Education Commissioning

RESOLVED -

THAT Schools Forum

a)             Note and agree the latest estimates of individual schools and growth budgets (section 3.6) and Appendix 1 and 2.

b)             Note and agree the provisional Early Years funding rates (section 3.9)

c)             Provide any further comment regarding the 2023/24 funding (section 2.14)

d)             Identify any areas of funding for review in autumn 2023 ahead of the funding year 2024/25.