Contact: Andrew Minall, 01962 847545;

Contact: Andrew Minall, 01962 847545; [email protected] Kathryn Stevens, 01962 845185; [email protected]

1 Summary

This paper sets out a summary of all the funding policies for Hampshire schools and academies that have been agreed by Schools Forum, known locally as the ‘Hampshire School Funding Policy Pack’.

Schools Forum is being asked to note the revisions to the existing policies following updated guidance from the Education Funding Agency (EFA) and to formally agree to the inclusion of a new policy for education centres (pupil referral units).

A separate paper on this agenda considers a revision to the growing schools policy. Therefore this policy has been excluded from this report.

All revisions and new policies are to become effective from April 2016.

2 Background

The current version of the Policy Pack was agreed by Schools Forum in May 2015. It contains a summary and the criteria of all policies that have been agreed by Schools Forum. The document is available through the main Budget Shares webpage for all schools to view. The link is as follows:

http://www3.hants.gov.uk/2015-16-school-funding-policy-pack.pdf

All policies contained within the Policy Pack have been produced in line with the latest Operational Guidance issued by the EFA. A link to the 2016/17 guidance can be found here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/4 45686/Schools_revenue_funding_2016_to_2017_operational_guide_publicatio n_version_final.pdf

A summary of each policy and the proposed revisions can be found below. Any updates that are required will be clearly stated and a draft copy of the Policy

1 Pack is attached as Appendix 1. For ease, the amendments have been formatted to italic to re-inforce the revisions.

3 Growth Fund

The growth fund policy covers the following areas :

 Significant pre-16 growth  New schools  Re-organised schools  Infant class size regulations  Temporary classroom hire

Please refer to the separate agenda item relating to the growing schools policy.

New schools will continue to be allocated a fixed sum of £75,000. This fixed sum is intended to cover the lead in costs and any initial equipment therefore separate funding for initial equipping will no longer be paid.

There have been no changes to the policy for schools that are re-organising; more clarity has been given to define what is classed as a ‘re-organisation’ for the purposes of funding under this policy.

This funding is intended to cover any lead in costs, goods and services that have arisen as a result of the re-organisation. The amount paid to a school will not exceed the amount payable to a new school. As with new schools, initial equipping allowance will no longer be paid in addition to this funding.

Clarification has also been provided with regards to funding for schools that are amalgamating. As per the current DfE funding regulations, when one or more school closes and a new successor school opens, the new school will retain 85% of the combined lump sums in the year following amalgamation (or in the same year if they amalgamate on 1st April).

However, the DfE are currently in consultation and are proposing to extend the definition of amalgamation to include a school that has had their upper or lower age range changed as a direct consequence of another school’s closure.

For schools who are preparing to amalgamate, it is proposed to apply this approach through the Growth fund outside of the budget share until this change in definition has been confirmed.

To ensure secondary schools are not disadvantaged by this regulation, it is proposed to apply the same approach. This will apply where one or more secondary schools have closed and another has significantly extended their planned admission number (PAN) as a direct result of the closure.

There are no proposed changes to Infant Class Size (ICS) funding, however, more detail and clarity has been added to the policy pack. Termly funding, equivalent to the cost of a teacher or learning support assistant, is paid to those schools that have breached the ICS regulations according to the relevant preceding census and as agreed with the School Organisation Team. An example of circumstances in which funding will be paid is now detailed within the policy pack.

There are no changes to policy for temporary classroom hire; however more details have been added to clarify the funding process, which is always a single reimbursement of the incurred costs at the end of the financial year.

4 Contingency

The EFA guidance states that the local authority can de-delegate dedicated schools grant (DSG) funding to form a contingency fund.

The budget for contingency relates to primary and secondary maintained schools only. Circumstances under which the contingency fund can be retained centrally are listed below:

 Exceptional unforeseen costs  Schools in financial difficulties  Deficits of closing schools A detailed description of each of these circumstances along with the procedures for schools converting to academies mid-year can be found within the Policy Pack.

There are no changes to this policy, however, minor amendments to wording has been made to provide more clarity to the deficits in closing schools policy.

5 Split Sites

No changes are proposed to this policy. Additional funding is provided to recognise the additional costs that schools operating on multiple sites can face.

Schools in Hampshire that meet the eligibility criteria will continue to receive a fixed sum of £50,000 per annum.

6 Falling Rolls

The falling rolls policy is intended to support schools where there is a population bulge expected in the future, but where a good or necessary school or academy currently has surplus places and faces an unmanageable funding shortfall in the short term.

Schools Forum agreed the criteria in December 2013 and the policy was introduced from 2014/15. There are no proposals to amend this policy for 2016/17.

7 Cap on EHC Plan / Statemented Spend

3 There are no proposals to amend this policy for 2016/17.

This policy was introduced in 2013/14 and is intended to offer a form of protection for schools that have disproportionate levels of pupils with statement of special education needs or an education health care plan (EHCPs).

This policy was formally approved by Schools Forum in May 2013 and is applicable to primary and secondary mainstream schools and academies only.

The policy means that a school will require additional funding where the cost to the school of EHC plan / statemented pupils is above 3% of their budget share.

There are no revisions to the policy, however as Schools Forum is aware, there is currently a working party undertaking a review on how the funding is distributed within schools.

The proposal is to provides a small amount of funding for additional need for those pupils without an EHCP. As part of this review, changes to the funding mechanism may require policy amendments. Schools Forum will be made aware if changes are required.

8 Over-Occupancy Funding

There are no proposals to amend this policy for 2016/17.

Schools Forum approved this policy in May 2015. The policy is applied to special schools, resourced provisions and education centres, who are all currently funded through the ‘place-plus’ approach.

The policy is intended to protect those schools that have been asked by the SEN / EIS Service to admit a higher number of pupils into their school than their agreed place numbers (APN).

The policy is funded from within the top-up budgets in the High Needs Block. Further information regarding this policy, along with a worked example, can be found within the policy pack.

9 Education Centres (Pupil Referral Units)

Education Centres are funded via the ‘place-plus’ approach of £10,000 per agreed place number (APN) with a ‘top-up’ payable on a per pupil basis.

A policy is proposed to be included within the Policy Pack to provide clarity over existing funding arrangements between mainstream schools and education centres. Therefore no new arrangements are proposed. However a formal inclusion of this policy is sought from Schools Forum.

In December 2012, Schools Forum agreed to continue with an appropriate charging mechanism for schools to contribute towards the marginal additional cost of meeting the needs of Emotionally Vulnerable (EV) or medically unwell pupils educated at the centre. For dual registered pupils, this applies after the first four weeks of the placement (regardless of FTE) with schools contributing the pro rata amount of the school level Age Weighted Pupil Unit (AWPU). For those single roll pupils that receive support or outreach from the education centre, the LA will advise the PRU what to charge the school. Dual registered pupils at risk of exclusion are excluded from the arrangement for charging schools the AWPU.

For dual registered pupils, Pupil Premium is allocated to the home school. The mainstream school and education centre will need to enter into an arrangement to ensure that the funding is spent appropriately for the required purposes of the pupil concerned. This may result in the need for the mainstream school to transfer either a proportion, or the entire pupil premium allocation, to the education centre.

These arrangements will encourage joint working between schools and education centres to ensure that the needs of EV / unwell pupils are met. It will also ensure pupils are placed appropriately on the basis of an agreed need and avoids any “perverse incentives” within mainstream schools or education centres.

Clarity has been provided for funding arrangements in situations whereby a mainstream school or other local authority commissions a place at the education centre without the agreement of the Education Inclusion Service. For placements that have been commissioned with this agreement, top-up funding is paid by the local authority. In the event of a placement without this agreement, then the school or other local authority must meet the cost of the place funding and the top-up.

10 Recommendations

It is recommended that Schools Forum approves the revisions to policy numbers 1 – 6, with the exception to the growing schools policy that is considered within a separate paper on this agenda. The revisions to the Policy Pack will be effective from April 2016.

It is recommended that Schools Forum formally approves to the inclusion of a policy for Education Centre Funding (policy 7), which will be effective from April 2016.