Local democracy

Agenda item

2022/23 DSG & FORMULA FUNDING ANNOUNCEMENTS - BRIEFING

The Business Advisor (Schools) will present Document NH (Appendices 1 and 2), which provides a briefing on the 2022/23 Dedicated Schools Grant settlement and formula funding arrangements, following the DfE’s announcement on 19 July 2021.

 

This report provides important background for the development of our formula funding arrangements for 2022/23.

 

Recommended –

 

The Schools Forum is asked to note the information presented and to begin to consider the implications for the 2022/23 DSG budget planning round and formula funding arrangements.

 

         (Andrew Redding – 01274 432678)

 

 

Minutes:

The Business Advisor (Schools) presented Documents NH Appendix 1 and Appendix 2, which summarise the announcements that have been made over the summer, on 2022/23 Dedicated Schools Grant (DSG) allocations and formula funding arrangements, and which explain the main implications for Bradford.

 

The Business Advisor emphasised that the 2022/23 Early Years Block settlement and formula funding arrangements are still to be announced and that the position of the protected funding of maintained nursery schools from April 2022 is still unclear.

 

The Business Advisor explained that the net reduction in pupil numbers across the District, forecasted as a consequence of demographic trends in particular at this time for early years providers, primary schools and primary academies, is a strongly emerging theme for Bradford’s Dedicated Schools Grant. As well as having implications for the funding levels of individual early years providers, schools and academies, the forecasted net reduction in pupil numbers will have consequences for the amount of budget ‘headroom’ that is available for the Authority to deploy within the DSG going forward in support of formula funding arrangements and other cost pressures.

 

The Business Advisor briefly explained how the Authority currently is seeking to work with schools, individual academies and Multi Academy Trusts, within planning areas across the District, to manage adjustments to PANs (Published Admission Numbers) in response to reducing primary-phase pupil numbers. The Authority is seeking to manage these adjustments in a collaborative way, to support the financial security of all schools and academies in the relevant planning area. The Business Advisor explained that it will be helpful to the Authority for the Schools Forum to give its support to the collaborative approach that the Authority is trying to achieve. The Business Advisor asked whether the Forum could formally resolve to give this support at this meeting.

 

The Forum’s discussion on this agenda item concentrated on this request. Forum members asked the following main questions and made the following main comments:

 

·         Whether all admissions applications still to be admitted will be placed in time for the October 2021 Census? The Deputy Director, Education and Learning responded that the Authority is working hard to place these applications and that the position is much as it has been in recent years. There has again been a large number of late applications, which are currently being processed. The Academies Member, who asked the initial question, asked whether more specific information on outstanding applications could be provided so that schools can help maximise the number of placements that are secured before the October Census is taken. The Deputy Director responded that she will discuss this request with the Strategic Manager, Pupil Admissions.

·         The Vice Chair asked that the Authority provides the Forum with a strategic level overview of PAN management. He explained that this would help the Forum engage with this matter. Some modelling (at a strategic level) of the ‘double’ impact that the reduction in pupil numbers may have going forward, alongside the continued growth in the levels of need of pupils, will also be helpful. This strategic information may help us to identify issues or emerging themes that we have not yet considered. The Vice Chair added his support, that it makes sense to seek to manage pupil numbers and PAN adjustments in a collaborative way. This will be balanced with parental choice. The Deputy Director respond to agree that it is important that the Schools Forum is sighted on these matters going forward, in particular because the Authority is seeking to take action, which will help provide financial security for schools and academies. The Authority is concerned that the disengagement of an individual maintained school, or an individual academy or MAT, from a collaborative approach, will have wider implications for the financial security of other schools and academies in the affected planning areas. Discussions are already taking place within planning areas, which are aimed at achieving the collective management of these issues. The Deputy Director added that a strategic school places plan is published by the Authority annually and that an SEND places sufficiency report is also published (and will be presented to the Schools Forum in December).

·         An Academies Member stated asked how the Authority constructs its pupil number forecasts and to confirm the accuracy of these forecasts i.e. are we are at risk of substantially reducing places capacity now only for this to be needed in the near future? The Deputy Director respond to explain that, shortly after taking post, the methodology the Authority uses to construct pupil numbers forecasts was adjusted, to use a more common approach, which is more accurate. We are confident that the PAN management actions that we are looking to take now are based on more accurate modelling.

·         An Academies Member stated that parental choice is an important factor. Because of dropping birth rate, and reducing pupil numbers, schools and academies that are undersubscribed tend to admit a proportionately larger number of pupils that have additional educational needs, SEND and EHCPs. Is there any way the distribution of these higher needs pupils can be managed better within the admissions process? The Deputy Director responded to recognise the picture the member presents and to offer the view that is not possible to start to try to manage these issues through the admissions processes unless we work collaboratively across maintained schools and academies, in the way that the Authority is seeking now.

·         A Member representing maintained primary school Headteachers stated that current parental behaviour in respect of appeals does not help ease admissions issues.

·         An Academies Member stated that reducing PAN (and pupil numbers) in schools and academies has significant budget consequences, and necessitates difficult actions (staffing restructures etc.). A point to further consider here is how the process of PAN reduction could be made easier, including whether / what financial ‘cushions’ could be provided to support schools and academies that may be asked by the Authority to reduce their PAN in support of achieving a collective approach within a single planning area. The Deputy Director responded that the options for providing a financial cushion would be limited by the DSG / Financial Regulations. A factor that also perhaps needs to be emphasised in these situations is the financial benefit that a school or academy will achieve in the longer term, compared against the possible implications where a school or an academy, for example, seeks to retain its PAN and continues to be undersubscribed or has to try to encourage pupils that live further away in order to maintain numbers.

 

The Chair summarised the Forum’s discussion and confirmed with members that they are happy to resolve to support the Authority.

 

Resolved –

 

1)        That the information presented in Document NH be noted.

 

2)         That the Schools Forum supports the Local Authority in seeking to achieve a collaborative approach, between schools and academies within planning areas, to the adjustment of Published Admission Numbers (PANs), in response to demographic trends (reducing pupil numbers).

 

3)         That places planning, places sufficiency and PAN adjustment activity continues to be discussed by the Schools Forum within the 2021/22 academic year work programme.

 

LEAD:            BUSINESS ADVISOR (SCHOOLS)

 

 

Supporting documents: