Agenda item

The report provides an update to Cabinet regarding the National Funding Formula (NFF) and the implications for 2023/24 School Funding in Northumberland.  Comments made by this Committee will be reported to Cabinet when they consider the report on Tuesday 17 January 2023.

S Aviston, Head of School Organisation and Resources, provided a comprehensive introduction to the Cabinet report which gave an update regarding the National Funding Formula (NFF) and the implications for 2023/24 School Funding in Northumberland.  Members were reminded that the figures in the report were indicative and Cabinet were asked to approve the delegation of the approval of the final formula values to the Joint Interim Director of Children’s Services in conjunction with the Lead Member for Children’s Services and Deputy Leader once the final budget allocations had been released.  The Dedicated Schools Grant (DSG) figures were released on 16 December 2022 and with £9m additional grant funding awarded to this authority, Northumberland would receive just over £298m which was £17.4m more for 2023/24 compared to 2022/23 which would assist schools to meet their inflationary needs.

In response to concerns regarding the movement of funding to the High Needs Block (HNB) and membership of the Schools’ Forum, it was clarified that this transfer of funds had been done for the previous 4 years due to the increasing demand for special school places as a result of schools not being as inclusive, along with the increasing number of pupils with EHCPs.  The movement of funding could not be undertaken without consultation and the percentage to be transferred had reduced from 1% in 2018/19 to this proposal for 0.25% for 2023/24.    A lot of work was undertaken in the background to ensure that the Schools Forum understood the reason for the transfer and it was also highlighted that previously paid for Service Level Agreements (SLAs) for SEND services had been removed and these services were now given free of charge in order to allow more strategic support for all schools to be provided.  Financial impacts on schools were often related to pupil numbers and information on individual financial settlements for schools could be provided to Members.  It was confirmed that the HNB funding was still being spent on Northumberland children with a large proportion of it being spent within mainstream schools for SEND pupils, and whilst it would always be good to get more Government Funding, there had been an increase of £17.4m this year.  The provision of additional SEND places within County would ensure that more money remained within Northumberland rather than paying for expensive out of County placements.    Assurance was provided that the membership of the Schools’ Forum reflected the make-up of the County’s maintained schools, academies, early years and alternative provisions and as a group were very vociferous and diligent in their decision making. It was noted that whilst Schools Forum was the consultation body for school funding, it was Cabinet who made the final decision.

There were limitations on what the Council could do in relation to the funding of smaller rural schools with surplus places when funding was based on pupil numbers, however the Council did pay the maximum sparsity funding and once the budgets had been set Members could be given the figures for their local schools in order for them to have more detailed discussions if they so wished.

Members were advised that in terms of funding for education, whilst significant progress had been made from Northumberland’s previous position of third worst funded authority to where they were now in the middle of the table, additional funding would always be needed.  The Council was still part of the F40 Group which campaigned for fairer education funding to allow equal opportunities for children no matter where they lived. Information on the F40 Group and Northumberland’s funding position and comparator could also be included in the report on final funding figures for the schools. 

The Chair highlighted that whilst the lack of equitable funding for education within the County was still an issue, that Children’s Services was not a failing service nor did Northumberland have failing schools.  All staff involved either in schools, academies or the whole education team within the Council were doing an excellent job and would be able to do even better with additional funding.

RESOLVED that

1.    Cabinet be advised that this Committee supported the recommendations as outlined in the report; and

2.    A report be provided to this Committee giving details of the Council’s education funding position and comparator information in relation to other Local Authorities and members of the F40 Group.