Agenda item

The report provides information on the recent announcements on the Dedicated Schools Grant (DSG) funding arrangements and budget setting process for 2018/19.

Andrew Ward informed the Forum that the Department for Education (DfE) had announced the Dedicated Schools Grant (DSG) funding arrangements and budget setting process for 2018/2019. With only slight modifications, the plans for a National Funding Formula would proceed and Mr Ward directed members’ attention to  paragraphs 3.2.1 to 3.2.7 on page 24 to the Agenda pack which contained the main points relevant to Brent. He highlighted that the 0.5% per pupil cash increase was the most significant announcement for Brent as this meant additional funding of £1.5 million (approx. £30 per pupil), with average gains for a primary and a  secondary school being £9,500 and £30,000 respectively. Mr Ward said that this could be redistributed locally if necessary. He referred to Table 1 on page 26 to the Agenda pack which provided an estimate of some of the budget pressures that would be felt by schools in 2018/19. It indicated a funding gap of £2.1 million and, according to Mr Ward, the 0.5% funding increase would not be sufficient to mitigate pressures that mainstream schools would experience. 

In terms of the Area Cost Adjustment (ACA), the Forum heard that Brent was a hybrid authority, as it paid inner London teaching salaries, but non-teaching staff were paid on the outer London scale. Mr Ward reminded the Schools Forum that the national funding formula was the same across the country with allocations for deprivation and additional needs being added as applicable. A Secondary Academy Head enquired why pension contributions from non-teaching staff in schools in Harrow were lower than in Brent (12% difference). Mr Ward explained that this had been examined and noted that rates were generally high, but vary due to historic decisions in each individual borough. The Chair suggested that a report providing information on Brent’s position be provided at a future meeting of the Forum.

Mr Ward referred to sections six and seven of the report which focused on the Early Years Block and the Central Block respectively (pages 26-28 to the Agenda pack). The Forum heard that an increase in line with pay rises of 1% had been scheduled in the Admissions service budget for 2018/19, and that this was the first increase allowed on this budget since 2013/14.  It was also reported that the Early Years budget had been balanced within £50,000 with the shortfall relating to 2 year old funding being made up from reserves. Members of the Forum questioned the budget allocated to the School Admissions Team and additional information about the increase of £7,000 was requested. A Secondary Head Teacher asked a question that related to the proposed budget for termination of employment costs. Mr Ward explained that it related to historic costs and had been set as the agreed DSG contribution, so it would not be possible to adjust it and it was unlikely that the allocation would drop below £600,000, given that the total cost was in excess of £2million.

Mr Ward informed the Forum that it was forecast that DSG reserve balances would exceed £6 million and that this would appear on the Council’s Statement of Accounts. In response to questions from members of the Forum, he said that reserve figures varied across local authorities, with some councils being in deficit. He reminded the Forum that the 2018/19 funding figures discussed would remain indicative until the Department for Education published the final funding figures in late December 2017.  

RESOLVED that:

(i)        The contents of the Dedicated Schools Grant Budget 2018/2019 report, be noted;

(ii)       The Council continued to plan the 2018/19 DSG Schools budget in line with the outlined indicative block allocations;

(iii)      The current de-delegation and ESG support services funding be continued into 2018/19 and a breakdown on admissions be included;

(iv)      The High Needs Task and Finish Group and Early Years Task and Finish Group be tasked to set the High Needs Block and Early Years Block budgets within the limits indicated in the report;

(v)       A DSG Working Group be convened to make recommendations on the DSG reserves budget to the Council;

(vi)      Lesley Benson, Geraldine Chadwick, Kay Charles, Mike Heiser, Titilola McDowell and Andry Prindiville be appointed to the DSG Working Group referred to in (v).; and

A report detailing Brent’s position in relation to pension contributions from non-teaching staff be provided at a future meeting of the Schools Forum