Agenda item

This report informs Schools Forum of the provisional DSG block funding allocations announced for 2024/25.

Olufunke Adediran, Head of Finance introduced the report which updated the Forum on the provisional DSG block funding allocations announced for 2024/25.

The Forum noted the following key points as part of the update provided:

·             The Forum was asked to note the provisional 2024/25 allocations which would form the basis of further detailed work to allocate funding to individual schools and settings at the January and February 2024 meetings, once the final funding was confirmed.

·             The core factors in the NFF (such as basic per-pupil funding, and funding for additional needs such as deprivation) would increase by 1.4%, however a number of changes had been introduced, following the requirement for schools to move to the hard funding formula, as detailed in section 5 of the report.

·             As discussed at previous Schools Forums, a small number of Brent schools would be affected by the split site funding; these schools had met with the finance team to discuss how their funding would be impacted.

·             A further notable change was that, for the first time, in 2024/25 the DfE would allocate funding to local authorities on the basis of falling rolls, as well as growth. Local authorities could use the funding to support schools that experienced a short-term fall in the number of pupils on roll.

·             A further change for 2024/25 would see local authorities being required to provide growth funding where a school or academy had agreed with the local authority to provide an extra class to meet basic need in the area (either as a bulge class or as an ongoing commitment)

·             In relation to the high needs block, the national increase for 2024/25 compared to 2023/24 was 4.3% or £440m. The NFF would ensure that every local authority received an increase of at least 3% per head of population, compared to 2023/24, and no more than 5%. Brent would receive the minimum 3% increase like other Outer London boroughs. This was the lowest increase in the past few years, the Forum was advised that if demand continued to grow the funding would not be sufficient to meet the pressures and the deficit was likely to increase. This could have a significant impact for Brent and many other councils in the event that the statutory override ceases in 25/26 and local authorities are expected to clear any deficits from their general funds.

·             Central Block funding in 2024/25 would see an increase of 1.57% for the ongoing responsibilities that local authorities continued to have for all schools, whilst funding for historic commitments in relation to pension costs within this block would decrease by a further 20% from 2024/25.

·             The 2024/25 Early Years’ block funding allocations were due to be announced in December 2023, with the revised rates setting the basis of the EY budget allocations to be presented at the January 2024 Schools Forum.

·             The DfE had announced that they would support the teacher’s September 2023 pay award with additional grant funding, the indicative allocation for Brent mainstream schools (excluding special schools) in 2023/24 was £2.56m, schools were not required to spend the grant in year.

·             For 2024/25 financial year, the DfE would pay the grant as a separate grant and for 2025/26 the grant would be incorporated into the NFF core budget allocations.

·             A new School Place Planning Strategy 2024-2028 had been approved by Cabinet in October 2023 with a view to support schools with falling rolls, this included capping admission numbers, bringing schools together in federations and reducing capacity across the estate. In response to falling demand, the local authority was currently consulting on the closure of the Gwenneth Rickus site of Leopold Primary School that was opened as bulge accommodation when primary demand was high, as well as a reduction in PANs at other primary schools.

The Chair thanked officers for their report and invited the Forum to ask any questions in relation to the information reported on the DSG provisional funding update.

The following queries were raised:

·             The Forum queried if the Age Weighted Pupil Unit (AWPU) funding for each key stage could be provided, in response the Forum was advised that the AWPU funding figures would be distributed once received in January 2024.

·             Following a Forum query in relation to the projected budgets and expenditure within the HNB for the following year, in light of the overspends and reduced funding, the Forum was advised that longer range forecasting was looked at as part of the deficit management plan. This information would be provided at the next Schools Forum.

·             The Forum highlighted to officers the significant challenges faced by schools when trying to manage continued reductions in funding and adequately support SEND pupils. Officers advised that they understood and were sympathetic to the challenges faced by schools in stretching funding to support all pupils, it was hoped that through the DBV strategies in place, along with the continued support from the Council that schools would in time, start to experience the benefits of the revised strategies and feel sufficiently supported in ensuring SEND pupils were receiving the help they needed.

·             The Forum questioned where the £6000 SEN funding that schools were required to spend on SEN pupils before top up funding could be requested from the local authority, could be found within their budgets. In response the Forum was advised that the funding was within the core budget that assumed a notional amount for SEND provision, this could be found on the Best Brent website where schools could access their budget information; a separate column showed the notional SEND budget. The Forum was further advised that these figures could also be found in the main budget published in February 2024 and if there were any specific queries in relation to this, schools could contact Folake Olufeko, Senior Finance Analyst, for further advice.

As there was no further discussion on the item the Forum RESOLVED to note the provisional 2024/25 allocations and the following Action Points to be taken forward:

Action Point 93:

Schools to be advised of the AWPU funding for each key stage.

Action Point 94:

The Forum to receive an update at a future meeting of the projected longer term financial position of the HNB as part of the deficit management plan.