Agenda item

Report of the Director of Education and Inclusion.

At the recent November meeting, forum was presented with the results of the consultation document sent to schools relating to the local funding arrangements for 2025/26. There were no major objections raised from the consultation and forum confirmed its agreement of the funding formula to be used for the distribution of funds to schools for 2025/26.

Following the 30th October 2024 Budget and the most recent 6th November Education and Skills Funding Agency (ESFA) policy document announcement, this report estimates the funding effects of that information on the current school individual NFF budgets and seeks schools forum’s agreement on the amount of Dedicated Schools Grant (DSG)  de-delegation for next year.

Due to the understandable delay by the ESFA following the recent change in government the individual schools figures are at this stage only estimated figures using the cash uplifts to the National Funding Formula (NFF) factors provided by the ESFA for 2025/26. These do not currently include a general inflation uplift rate for 2025/26 Schools block as it has not yet been confirmed.

Final actual individual school budgets for 2025/26 will be released to schools pending update of ESFA data (with the recent October 2024 census data) and its application to the local Camden schools’ formula using the Authority Planning Tool (APT) which is expected in late December 2024.

The report also summarises forecasts of the 2024/25 High Needs (HN) DSG outturn, future budgets requirements and planned DSG spending as outlined in the earlier High Needs Report to forum and also outlines current and future cost pressures on schools and high needs budgets to be used in budget planning.

This report was completed prior to any further announcements by the ESFA regarding schools national funding formula proposals. Officers will provide an oral update to the forum on any intervening development in schools’ funding at the meeting.

Consideration was given to the report of the Director of Education Commissioning and Inclusion.

Victor Saunders, Team Leader Schools and Designated Schools Grant, introduced the report which provided an overview of proposals for the local funding formula for 2025/26. The following information was highlighted:

·       Due to the timing of the October Budget by the new government there had been a delay in the Education and Skills Funding Agency (ESFA) funding announcements for 2025/6, however, it was confirmed the final National Funding Formual (NFF) structure would not change significantly.

·       Tools had been provided to each school, outlining estimated cost increases, which would the support budget setting process. The tool accounted for projected increases in inflation, which as of November 2024, the Bank of England had projected that inflation would about 2%, by the end of 2026.

·       The report had provided an update on the core schools budget which would increase by £2.3 billion, £1 billion of which was committed to supporting special educational needs and disabilities.

·       The government had also committed to providing £6.7 billion of capital funding in 2025/26, which would go towards rebuilding, renovation and maintenance.

·       The report had stated that the high needs block (HNB) allocation would increase by an estimated £2.85 million, however further modelling had found this increase to be around £3.8 million. This was a stronger position, as this projected figure would mean the 2025/26 HNB would be within budget.

·       The funding formula had previously been agreed every six years; however, the regulations had changed, and it was a requirement for the funding formula to be consulted upon each year. Therefore, a standing item would be on the School’s Forum agenda every September. It was not envisaged there would be yearly changes, it was intended to fulfil statutory obligations.

The Chair thanked officers for the report and invited questions and comments from the Forum. Responding to questions, officers provided the following information:

·   To determine the estimated grant, the per pupil figure was uplifted by 2.3% and then multiplied by the enrolment figures.

·   Projected figures were based on the roll figures census as of October 2023, as the data for October 2024 had not yet been updated.

·   In terms of longer-term financial planning, it was noted that a spending review would take place later in the year, which would provide further detail, including the forecast level of inflation, which was estimated to be 2%.

·   The Government was expected to fund the National Insurance increase through a separate grant. However, it had not yet confirmed whether any grant would be provided for teachers' pay rises from September 2025.

·   Sometimes it was necessary for SEND pupils to go to independent non-maintained placements out of borough, these were typically high-cost and low-incidence.

·   A detailed analysis of placements was anticipated and further information on this would be provided later, which would provide more detailed information on the profile of need.

·   Updated figures were expected to be available to schools by the end of December, similar to the previous year, with further updates in January. Figures would then be finalised in late January or early February, pending ESFA approval.

Forum members emphasised that the figures needed to account for the significant impact of falling rolls, with some schools having pupils leave weekly, due to moves out of the Borough. Therefore, although budgets appeared to be increasing, for some schools, budgets might remain the same or decrease due to decreasing pupils on roll. Fixed costs would remain the same for schools despite a decline in pupils, which would cause additional financial strain.

RESOLVED –

THAT the Schools Forum:

a)    Note the estimated National Funding Formula allocations, which are indicative allocations to support budget planning and are not yet the final school budgets, to individual schools as set out in Appendix 1;

b)    Note the level of deductions and reserves to be used to support the funding allocations to schools;

c)    Note the Education and Skills Funding Agency’s continued use of the Central Schools Block replacement of the former top sliced amounts;

d)    Approve the de-delegated budgets as set out in section 2.1 of the report;

e)    Note the current forecast spending plans and funding for the high needs and early years blocks;

f)      Note the potential effects of the future funding and cost pressures outlined on schools’ budgets; and

g)    Agree to the disapplication request to the Education and Skills Funding Agency for the 2025/26 local authority proforma tool to continue to include the existing “exception premises factors” for Holy Trinity and St Silas, Our Lady Roman Catholic Primary, and Regents High Schools.