New School Funding Arrangements

OVER  VIEW OF THE MEETING AND PRESENTATIONS FROM NGC AND LEA INCLUDING GOVERNORS' RESPONSES TO CONSULTATION - CLICK HERE

NEW SCHOOL FUNDING ARRANGEMENTS FROM 2006-07

On 21 July 2005 the Minister for Schools announced the Government's decisions on the new school funding arrangements.  The announcement followed a consultation which closed on 13 May 2005.

The key points of the announcement are set out below.

Multi-Year Budgets

• Two Years from April 2006 - March 2008 will be a transitional period.
• Schools will receive budget information for two years from April 2006.
• This information will be on a Financial Year Basis.
• From April 2008 full three-year information will be implemented.
  • Probably on academic year basis, but this is under review.
• Local authorities will need to make key decisions before the beginning of multi-year budget cycle on:
  • Funding formula.
  • What the split should be between the amount of funding delegated to schools and amount retained centrally.
  • With the agreement of the Schools Forum these can be amended.
• Budgets will need to be updated annually for pupil numbers.
  • DfES intend to require local authorities to use a single pupil count date (probably January).
• Annual changes to reflect other data changes will be a matter for local authorities in discussion with Schools Forum.
• LSC will carrying out consultation in Autumn 05 about two year settlements for school sixth forms.        
• Minimum Funding Guarantee will remain:
  • will be set in advance for whole of settlement period.
  • its operation will be reviewed from 2008-09.
• Centrally Held Funds:
  • cannot increase at a faster rate than delegated funds ? will continue to operate.
  • Any proposal by a local authority to increase the limit will need to be agreed by Schools Forum.

Dedicated Schools Grant (DSG)

• DSG will be allocated to local authorities to cover the period for which they are required to give schools budget allocations.
  • Two year settlement from April 2006.
  • Three year settlement from 2008.
    • notified after the results of the Speding review.
• Basline for DSG will be total of authorities? budgeted expenditure in 2005-06:
  • DSG will increase by 6% over baseline for 2006-07 & 2007-08.
  • All local authorities will receive an increase of at least 5% per pupil 2006-07 & 2007-08.
  • Protection for falling rolls ? mimimum overall increase for authorities in cash terms (level announced in the autumn).
  • Baseline for each individual authority will be based on their existing level of spend (i.e. schools budget)
  • DSG as consulted on will mean that those authorities currently spending above SFSS level will see funding level reduced in relative terms.
    • DfES will consult on methodological changes to the formula (due to issue shortly).

o       Local authorities will be able to use DSG funds in conjunction with other local authority funding in support of Every Child Matters work and where they can demonstrate benefits to schools and pupils and the contribution is proportionate.

Single Development Grant and Standards Fund Grant

• School Development Grant (SDG) from April 2006:

• Distribution will be based on the current distribution of its constituent grants.
• Will retain some separate grants.
• School Standards Grant ? will be separate from SDG for April 06-March 08:
  • Distributed on a flat rate per school plus a per pupil amount.
  • Will be transitional arrangements
  • Schools will be able to use this grant to support extended services.
• From April 2008 will consider consolidating School Development Grant and School Standards Grant.

Schools Forums

• will retain their position as an advisory body.
• will also have new decision making role.
  • From 2006-07 will
    • in areas relating to where the system allows some flexibilities for local authorities to move away from the requirement of school funding regulations.
• Will be changes to the regulations governing Schools Forums proceedings and constitution (draft Regulations can be viewed via the link below). http://www.teachernet.gov.uk/docbank/index.cfm?id=8717

• Before full implementation of three-year budgets in 2008-09 DfES will hold a wider review of workings of schools forums; in particular:
  • are they properly representative.
  • do they have access to appropriate support and advice.
  • should they have a remit for capital as well as recurrent funding.

The full DfES announcement on multi-year budgets can be found via the link below:

http://www.teachernet.gov.uk/management/schoolfunding/2006-07_funding_arrangements/

BACK TO MEETINGS

 DfES Consultation on School Funding Arrangements 2006-2007

LEA Overview