Issue - meetings

The Cabinet Member for Educational Attainment and School Improvement presented a report on the Dedicated Schools Budget and Schools Funding Formula for 2024/25.

The Cabinet Member explained that the main source of funding for education-related activities came from the Department for Education (DfE) via the Dedicated Schools Grant (DSG) and was allocated under four blocks that funded different components of the 3 - 16 year old education system, namely the Schools block (the main allocation to schools), the Central block (central costs for core Local Authority education services), the High Needs block (additional costs for Special Educational Needs pupils) and the Early Years block (childcare and pre-school services)..  The DfE’s future intention was to allocate the Schools block directly to schools based on a National Funding Formula (NFF).  In the meantime, the Council, as the Local Education Authority, retained the ability to set its own formula for the allocation of Schools block funding along with the other funding blocks, in consultation with schools and the local Schools Forum. 

The Cabinet Member advised that in view of the fact that all 43 primary schools in the Borough were funded at the ‘funding floor’, receiving only the minimum increase 0.5% in per pupil funding, the preferred option for 2024/25 was to apply a local model (referred to as Model C) that allocated additional funding to the primary sector to achieve a 1:1.36 ratio between primary and secondary phases, compared to a 1:1.42 ratio under the NFF.  The Schools’ Forum had endorsed that approach at its meeting on 16 January 2024 and further supported the proposed allocation arrangements for the other three blocks.

The DSG allocation for 2024/25 (including Academy school funding) totalled £367.846m, an increase of £25.5m on the allocation for 2023/24.  The Cabinet Member pointed out, however, that factors such as inflation and the significant increase in pupils with special educational needs and/or Education, Health and Care Plans (EHCPs) meant that pressures on all areas and especially the High Needs block would remain and some services, such as the Community Music Service and the Trewern Outdoor Education Centre, would continue to experience budget reductions.

Speaking in support of the proposals, the Cabinet Member for Finance, Growth and Core Services also remarked on the benefits of having a National Funding Formula in place for school funding.  He encouraged the Government to avoid any further delay in implementing Fair Funding reforms across all Local Authority service areas, especially in Children’s and Adults’ social care, to similarly recognise the additional and ongoing financial support that communities with high levels of deprivation and vulnerability required.

Cabinet resolved to:

(i)  Note the indicative allocation of Dedicated Schools Grant for 2024/25 as set out in section 2 of the report;

(ii)  Approve the strategy for the Dedicated Schools Budget as set out in section 3 of the report;

(iii)  Approve, subject to consultation with Schools and the Schools’ Forum, the proposed principles for the design of the Local Schools Funding Formula as set out in section 4  ...  view the full minutes text for item 74