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ITEM EX5 - ANNEX 2

EXECUTIVE - 11 DECEMBER 2001

REVIEW OF SCHOOL BUDGET DELEGATION FORMULA

 

ANNEX 2

SUMMARY OF MAIN POINTS IN DfES LETTER OF 23 NOVEMBER 2001

LSB Percentage Delegation Target for 2002/03

  • Reconfirms the 87% target confirmed by Stephen Timms in June 2001.

  • Changes in the calculation

- from September 2002, LEAs will be required to provide a full time curriculum for all excluded pupils. This will put pressure on central budgets. Consequently, the formula for the calculation of the delegation target will be adjusted to ignore year on year increases in Pupil Referral Units and Education Out of School (lines 1.4.5.1 and 1.4.6 of the Section 52 Statement).

- some LEAs have in the past delegated SEN funding to clusters of schools. It is felt by the DfES that compliance with the 87% target would jeopardise these arrangements. In that firm decisions have not been taken on the treatment of SEN funding in the new funding arrangements for 2003/04, the DfES has decided to treat such expenditure as delegated in the 2002/03 calculation. This does not apply to Oxfordshire.

Other Delegation Targets

  • No increase in the delegated funding per pupil, although an increase is expected in the 2002/03 comparative tables. Ceiling for central administration remains at £70 per pupil.

Section 46 – Delegation

  • Under the new funding regime in 2003/04, the extent to which expenditure on licences and subscriptions will be held centrally may be a decision of the LEA’s school forum. There is a possibility that the existing 0.1% limit might encourage LEAs to delegate funding in 2002/03 only to change the arrangements for the following year. Hence the limit for 2002/03 is raised to 0.2%.

Use of Delegated Budget to Support Pupils in Other Schools

  • Regulations will be made under Section 50(3)(b) prescribing expenditure by schools on teaching and other support for pupils registered only at other schools to be an allowable use of budget shares.

Section 47 – Allocation

  • Percentage of Primary and Secondary ISB allocated on a pupil led basis reduced to 75% (presently 80%).

  • LEA’s funding formula should include a factor which distributes funding on the basis of some factor of social deprivation. For 2002/03 there is no minimum amount to be so distributed.

  • Specific factors for water, cleaning, nursery nurses and payroll no longer permitted. Oxfordshire not affected.

  • LEAs allowed to compensate for the effects of pupil reductions of at least 20% in two specific instances: housing redevelopment and armed forces movements.

  AWPU Uplift

  • AWPU funding for each phase (KS 1-2 and 3-4) to increase by an average of not less than 2.5%. Post 16 is excluded due to the changes in the funding arrangements.

  • This could be waived where LEAs are restructuring their formula.

Repairs and Maintenance – Voluntary Aided Schools

  • LEAs should remove any differentiation between voluntary aided and other schools in their formulae for premises factors. No differentiation in Oxfordshire’s formula.

Post 16 Funding

  • No need to take account of pupils aged 16+ except those not funded by LSO.

  • The LSO sixth form allocation should be included in the budget share for each school. It will count as "pupil led".

  • Can include a factor to give additional sixth form funding.

  • Can include a factor to compensate for the effect of some non AWPU funding in respect of 11 to 16 funding being included in the LSO allocation.

  • Disapplication of the consultation requirement in connection with sixth form funding.

  • No change required for special school formulae.

Schools Standards Grant

  • If a school closure approved before the start of financial year to take place in 2002/03, then has its implementation date altered after 31 March 2002 to a date on or after 1 April 2003, the school would be entitled to SSG in 2002/03.

  • If a school closure is approved on or after 1 April 2002, but new schools are approved to open in the same year to take pupils of the original school, then only the new school will be eligible for SSG.