Agenda item

The DSG Settlement was received on 16 December 2021. It provided:

a.  Initial allocations for the early years block based on the DfE estimate of take up of the free entitlements over the year, incorporating the £0.21 per hour increase in 2- year old funding and £0.17 per hour for those aged 3&4 of circa 4%.      

b.  Final allocations for the school’s block national funding formula (NFF) based on the October 2021 schools census.  The increase in funding through the schools NFF for 2022-23 totals £8.8 million (3.9%). Higher funding values account for £5.4 million (2.4%), as reported in September, with additional pupils at census providing a further £3.4 million (1.5%).  Funding for in-year pupil growth from September 2022, has increased by £0.4 million compared with last year. 

c.   Provisional allocations for mainstream schools of a supplementary grant of £6.8 million (equivalent to 3% of mainstream funding) to cover specifically the new health and social care levy as well as general cost pressures. 

d.  Allocations for the central school services block provide a reduction compared with last year of £80,000.  

e.  Allocations for the high needs block have increased in total by £6.5 million (13.6%) in total compared with last year, due to higher NFF funding values (£3.8 million), more pupils attracting the basic entitlement (£0.8 million) and the autumn spending review allocating further funds (£1.9 million). 

The high needs deficit is projected to grow further in 2022-23 despite the significant increase in funding.     

The Assistant Chief Financial Officer presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book. The detailed Draft Budget had been provided within a Supplementary Appendix and it was also explained that other papers on the agenda considered the impact of the Settlement and DSG budget in detail.

The Forum noted the key provisions of the DSG Settlement as received on 16 December 2021 namely,

a.  Initial allocations for the early years block based on the DfE estimate of take up of the free entitlements over the year, incorporating the £0.21 per hour increase in 2-year old funding and £0.17 per hour for those aged 3&4 of circa 4%.      

b.  Final allocations for the school’s block national funding formula (NFF) based on the October 2021 schools census.  The increase in funding through the schools NFF for 2022-23 totals £8.8 million (3.9%). Higher funding values account for £5.4 million (2.4%), as reported in September, with additional pupils at census providing a further £3.4 million (1.5%).  Funding for in-year pupil growth from September 2022, has increased by £0.4 million compared with last year. 

c.   Provisional allocations for mainstream schools of a supplementary grant of £6.8 million (equivalent to 3% of mainstream funding) to cover specifically the new health and social care levy as well as general cost pressures. 

d.  Allocations for the central school services block provide a reduction compared with last year of £80,000.  

e.  Allocations for the high needs block have increased in total by £6.5 million (13.6%) in total compared with last year, due to higher NFF funding values (£3.8 million), more pupils attracting the basic entitlement (£0.8 million) and the autumn spending review allocating further funds (£1.9 million). 

In terms of Supplementary funding, the figures were presented as good news with a 3% headline increase and the settlement overall was better than expected.

The Assistant Chief Financial Officer responded to questions relating to comparison between secondary and primary allocations and explained that whilst numbers of primary pupils were currently flat, secondary school pupil numbers were increasing significantly.

It was noted that the high needs deficit was projected to grow further in 2022-23 despite the significant increase in funding.     

There was continuing frustration expressed around the High Needs Budget block and concerns were expressed about the perceived lack of action to reduce the gap between the forecast level and what was actually spent. In response, it was explained that this was a demand-led budget within the context of a dynamic environment.

The Chair shared the concerns being expressed and requested that, at the next meeting of the Forum, there should be a substantive agenda item about the High Needs Block where there would be the opportunity for a more in-depth discussion and explanation about how to address the upward budget trend. In the meantime, the Chair provided reassurance to the Forum that this matter and the types of concerns being raised by the Forum members were being addressed as a matter of priority.