Office of Public Sector Information

Regulation 19

SCHEDULE 3 ADDITIONAL FACTORS OR CRITERIA WHICH MAY BE TAKEN INTO ACCOUNT IN A LOCAL EDUCATION AUTHORITY’S FORMULA UNDER REGULATION 19

1.  Special educational needs of pupils determined in a manner that the authority consider appropriate as a means of assessing such needs.

2.  Pupils for whom English is not their first language.

3.  Turnover of pupils other than as part of the general admissions process at a school.

4.  Admission arrangements at a school.

5.  The size, condition and characteristics of a school’s buildings and grounds relative to those of other schools maintained by the local education authority.

6.  A school which has a split site: the funding must be in accordance with criteria published by the authority.

7.  Such physical facilities, organisational facilities for the education of pupils, or communications facilities as are found at some schools only.

8.  Non-domestic rates payable in respect of the premises of each school (including actual or estimated cost).

9.  Use of energy by schools.

10.  Rent payable in respect of school premises or payments in respect of the use by a school of facilities not exclusively occupied by that school (including actual or estimated cost).

11.  Transport to and from activities outside school premises which form part of the school’s curriculum, or transport between the school and other educational facilities attended by pupils (including actual or estimated cost).

12.  Hire of facilities outside school premises (including actual or estimated cost).

13.  Insurance: the funding must be equal to the amount which would be spent on insurance for the school in question if amounts were not delegated to the governing body for such insurance or, if the authority do not insure, the appropriate proportion of the amount that would have been spent had they insured, to be determined on a basis decided by the authority.

14.  Payments in relation to a private finance transaction (including actual or estimated cost).

15.  Where a school has been established or has become the subject of a prescribed alteration within the meaning of regulations made under section 18 of the 2006 Act as a result of the closure of one or more schools(82), a local education authority may include a factor in their formula which provides that—

(a) an amount may be added to the budget share of the school to reflect all or part of the unspent budget share of the closing school for the funding period in which it closes; or

(b) an amount may be deducted from the budget share of the school to reflect all or part of any deficit in the budget share of the closing school, provided the amount deducted does not exceed any amount determined by the local education authority under regulation 11(6) as the delegated budget of the new school for the period form the opening date to the appropriate date.

16.  Whether a school is to be discontinued in the financial year or the following financial year.

17.  School milk, meals and other refreshment: the authority may not, however, treat any element of this expenditure as having a negative value.

18.  Salaries at a school, the funding of which must be in accordance with a scale published by the authority (including actual or estimated cost), and which include pay arrears due to staff (also including actual or estimated cost).

19.  Safeguarding of salaries in accordance with a School Teachers’ Pay and Conditions Document having effect in accordance with an order under section 122 of the 2002 Act.

20.  Social priority allowances paid in accordance with a School Teachers’ Pay and Conditions Document having effect in accordance with an order under section 122 under the 2002 Act (including actual or estimated cost).

21.  The differential in recruitment and retention costs in different areas in which schools are located.

22.  The need for single payments to be allocated to nursery, primary, secondary or special schools, or any combination of such schools, regardless of size.

23.  The need for payments to be allocated to schools, of a size and satisfying other conditions, specified by the authority.

24.  Schools whose budget shares would otherwise be reduced year-on-year by a percentage figure of 3% or more, determined by the authority: the authority must publish that percentage figure and an explanation of how any amounts using such a factor or criteria will be determined including, if applicable, the use to be made of any sliding scale. Such a factor may not take account of the extent to which a school has spent more than or has not spent all of its budget share in any financial year.

25.  Contracts to which the governing body of a school are bound by virtue of a provision in the authority’s scheme (including actual or estimated cost).

26.  Effect of taxation on schools.

27.  Housing development or armed forces movements leading to a reduction in numbers on roll at a school of at least 20% within one year.

28.  Such items of expenditure in connection with provision for pupils registered at other schools as are prescribed by the School Budget Shares (Prescribed Purposes)(England) Regulations 2002(83).

29.  Incidence of Newly Qualified Teachers(84).

30.  Incidence of pupils from ethnic minority groups having below average levels of academic achievement in relation to other pupils in the authority’s area, to be determined on a basis decided by the authority.

31.  Incidence of nursery classes and places recognised by the authority as reserved for children with special educational needs.

32.  Prior attainment of pupils entering a school.

33.  Advanced Skills Teachers employed at a school.

34.  Permanent exclusions from a school (including estimates), and incidence of pupils whose names have been deleted from the admissions register of a maintained school as referred to in regulation 24 of these Regulations.

35.  Infant classes and places in infant classes not funded under any other provisions.

36.  Incidence of any element of teachers’ salaries relating to threshold and performance pay (including actual or estimated cost).

37.  Payments in respect of gifted and talented pupils.

Regulation 20

SCHEDULE 4 MINIMUM FUNDING GUARANTEE

Primary and Secondary Schools

1.  In this paragraph and paragraphs 2 to 4—

(a) references to the number of pupils exclude those funded by a grant paid to the authority by the LSC under section 7 of the 2000 Act;

(b) the “relevant number” of pupils for the financial year beginning on 1st April 2007 shall be the number of registered pupils at the school on 18th January 2007, except that where the authority has not exercised its discretion under regulation 15(1)(b) of the 2006 Regulations to take the number of pupils in places which the authority recognises as reserved for children with special educational needs, or in nursery classes, into account in their formula, then the number of those places must be added to the relevant number for the purposes of this Schedule;

(c) subject to paragraphs 3 and 4, the “relevant number” of pupils for funding periods 1, 2 and 3 shall be the number of pupils at the school on the dates referred to in regulation 15. Except that, where the authority has not exercised discretion under regulation 15(3) or 17(1)(b) or (5) to take into account in their formula the number of pupils in places which the authority recognises as being reserved for children with special educational needs or in nursery classes, the number of those pupils must be added to the relevant number for the purposes of this Schedule;

(d) the “adjusted budget share” (which must not be lower than the guaranteed funding level) is a school’s budget share determined in accordance with these Regulations, but not taking into account—

(i) the effect of regulations 20 (MFG), 21 (sixth form funding), 23 (excluded pupils) and paragraphs 8 (rates), 14 (PFI), 29 (NQTs), and 35 (ICS funding) of Schedule 3(85),

(ii) any amounts added in respect of funding for named pupils which is deducted from a school’s budget share when that pupil leaves the school, including amounts for pupil exclusions above that permitted by regulation 23 (excluded pupils), but not including amounts for the cost of providing free school meals;

(e) references to a redetermined adjusted budget share for the financial year beginning on 1st April 2007 include the effect of any additional arrangement approved by the schools forum or Secretary of State under regulation 25 of the 2006 Regulations,

but exclude the following—

(i) any amounts included pursuant to regulations 19 (sixth form funding), 23 (excluded pupils), and 24 (correction of errors) of the 2006 Regulations,

(ii) any amount included in respect of paragraphs 8 (rates), 14 (PFI), 29 (NQTs) and 35 (ICS) of Schedule 4 to the 2006 Regulations, and

(iii) any amounts in respect of funding for named pupils which is deducted from a school’s budget share when that pupil leaves school, including amounts for pupil exclusions above that permitted by regulation 23 (excluded pupils) of these Regulations but not including amounts for the cost of providing free school meals;

(f) references to a redetermined adjusted budget share for funding periods 1 and 2 include—

(i) the effect of any additional arrangements approved by schools forums or the Secretary of State under regulation 25 (additional arrangements) of these Regulations, and

(ii) the amount of funding the school received under paragraph 3 of Schedule 2 (threshold and performance pay) of these Regulations where the local education authority intends to include an amount in respect of this in a school’s budget share for funding period 2 or 3

but exclude the following—

(iii) any amounts included pursuant to regulation 21 (sixth form funding), 23 (excluded pupils) of these Regulations,

(iv) any amount included in respect of paragraphs 8 (rates), 14 (PFI), 29 (NQTs), and 35(ICS) of Schedule 3 to these Regulations, and

(v) any amounts included in respect of funding for named pupils which are deducted from a school’s budget share when that pupil leaves school, including amounts above those permitted by regulation 23 (excluded pupils) of these Regulations, but not including amounts for the cost of providing free school meals;

(g) for the purposes of this Schedule—

(i) where a school has opened after 1st April 2007 but before the 1st April 2008, its redetermined adjusted budget share for the financial year beginning on 1st April 2007 must be the amount that it would have been had the school opened on 1st April 2007,

(ii) where a school opens during funding period 1, its redetermined adjusted budget share for funding period 1 must be the amount that it would have been had the school opened on 1st April 2008,

(iii) where a school opens during funding period 2, its redetermined adjusted budget share for funding period 2 must be the amount it would have been had the school opened on 1st April 2009

adjusted in accordance with sub-paragraph (e) or (f), whichever is applicable.

2.  Subject to paragraphs 3 and 4, the guaranteed funding level is to be calculated as follows—

(a) for funding period 1—

(i) where the relevant number of pupils is the same as the relevant number for the financial year beginning on 1st April 2007, the guaranteed funding level must be A,

(ii) where the relevant number of pupils is lower than the relevant number for the financial year beginning on 1st April 2007, the guaranteed funding level must be A - (B x C),

(iii) where the relevant number of pupils is higher than the relevant number for the financial year beginning on 1st April 2007, the guaranteed funding level must be A + (B x C);

(b) for funding period 2—

(i) where the relevant number of pupils is the same as the relevant number for funding period 1, the guaranteed funding level must be A,

(ii) where the relevant number of pupils is lower than the relevant number for funding period 1, the guaranteed funding level must be A - (B x C),

(iii) where the relevant number of pupils is higher than the relevant number for funding period 1, the guaranteed funding level must be A + (B x C);

(c) for funding period 3—

(i) where the relevant number of pupils is the same as the relevant number for funding period 2, the guaranteed funding level must be A,

(ii) where the relevant number of pupils is lower than the relevant number for funding period 2, the guaranteed funding level must be A - (B x C),

(iii) where the relevant number of pupils is higher than the relevant number for funding period 2, the guaranteed funding level must be A + (B x C)

where—

A is, in respect of funding period 1, the redetermined adjusted budget share for the financial year beginning on 1st April 2007 multiplied by 1.021 in respect of primary schools and secondary schools, in respect of funding period 2, the redetermined adjusted budget share for funding period 1 multiplied by 1.021 in respect of primary schools and secondary schools, and, in respect of funding period 3, the redetermined adjusted budget share for funding period 2 multiplied by 1.021 in respect of primary schools and secondary schools;

B is, in respect of funding period 1, the difference between the relevant number of pupils for the financial year beginning on 1st April 2007 and funding period 1, in respect of funding period 2, the difference between the relevant number of pupils for funding period 1 and funding period 2, and, in respect of funding period 3, the difference between the relevant number of pupils for funding period 2 and funding period 3;

C is, in respect of funding period 1, the mean value of funding per pupil in the school’s redetermined adjusted budget share for the financial year beginning on 1st April 2007 (calculated using pupil numbers on 18th January 2007) multiplied by 1.021 x 0.80 in respect of primary schools and by 1.021 x 0.875 in respect of secondary schools; in respect of funding period 2, the mean value of funding per pupil in the school’s redetermined adjusted budget share for funding period 1 (calculated using pupil numbers on 17th January 2008) multiplied by 1.021 x 0.80 in respect of primary schools and by 1.021 x 0.875 in respect of secondary schools; and in respect of funding period 3, the mean value of funding per pupil in the school’s adjusted budget share for funding period 2 (calculated using pupil numbers on 15th January 2009) multiplied by 1.021 x 0.80 in respect of primary schools and by 1.021 x 0.875 in respect of secondary schools.

3.  Except where paragraph 4 applies, where the relevant number of pupils for the financial year beginning on 1st April 2007, funding period 1, funding period 2, or funding period 3 is 75 or fewer, that school’s guaranteed funding level for the funding period, or periods as the case may be, during which the number is 75 or fewer, must be calculated as follows:

(a) for funding period 1—

(i) where the relevant number of pupils in funding period 1 is the same as the relevant number for the financial year beginning on 1st April 2007 the guaranteed funding level must be A,

(ii) where the relevant number of pupils in funding period 1 is lower than the relevant number of pupils for the financial year beginning on 1st April 2007 the guaranteed funding level must be A - (B x D/E x 1.021) in respect of primary schools and secondary schools,

(iii) where the relevant number of pupils in funding period 1 is higher than the relevant number of pupils for the financial year beginning on 1st April 2007 the guaranteed funding level must be A + (B x D/E x 1.021) in respect of primary schools and secondary schools;

(b) for funding period 2—

(i) where the relevant number of pupils in funding period 2 is the same as the relevant number for funding period 1, the guaranteed funding level must be A,

(ii) where the relevant number of pupils in funding period 2 is lower than the relevant number of pupils for funding period 1, the guaranteed funding level must be A - (B x D/E x 1.021) in respect of primary schools and secondary schools,

(iii) where the relevant number of pupils in funding period 2 is higher than the relevant number of pupils for funding period 1, the guaranteed funding level must be A + (B x D/E x 1.021) in respect of primary schools and secondary schools;

(c) for funding period 3–

(i) where the relevant number of pupils in funding period 3 is the same as the relevant number for funding period 2, the guaranteed funding level must be A,

(ii) where the relevant number of pupils in funding period 3 is lower than the relevant number of pupils for funding period 2, the guaranteed funding level must be A - (B x D/E x 1.021) in respect of primary schools and secondary schools,

(iii) where the relevant number of pupils in funding period 3 is higher than the relevant number of pupils for funding period 2, the guaranteed funding level must be A + (B x D/E x 1.021) in respect of primary schools and secondary schools;

where—

A and B have the same meaning as in paragraph 2,

D is the total funding within the redetermined adjusted budget share determined on the basis of pupil numbers for, in respect of funding period 1, the financial year beginning on 1st April 2007, in respect of funding period 2, funding period 1 and, in respect of funding period 3, funding period 2; and

E is, in respect of funding period 1, the relevant number of pupils for the financial year beginning 1^st April 2007’ in respect of funding period 2, the relevant number of pupils for funding period 1, and, in respect of funding period 3, the relevant number of pupils for funding period 2.

For the purposes of this paragraph, “the relevant number” means, in respect of funding period 1, either the number of pupils registered at the school on 18th January 2007 or the number of pupils registered at the school on 17th January 2008; in respect of funding period 2, either the number of pupils registered at the school on 17th January 2008 or the number of pupils registered at the school on 15th January 2009; and, in respect of funding period 3, either the number of registered pupils at the school on 15th January 2009, or the number of pupils registered at the school on 21st January 2010.

4.  Where a school opens:

(a) in funding period 1, and is a replacement for two or more schools being discontinued in funding period 1, its guaranteed funding level must be calculated in accordance with paragraph 2, save that the figure in respect of the new school’s redetermined adjusted budget share for the financial year beginning on 1st April 2007 is to be determined using the sum of the relevant number of pupils in the discontinued schools for that financial year as the relevant number for the purposes of paragraph 1(b);

(b) in funding period 2, and is a replacement for two or more schools being discontinued in funding period 2, its guaranteed funding level must be calculated in accordance with paragraph 2, save that the figure in respect of the new school’s redetermined adjusted budget share for funding period 1 is to be determined using the sum of the relevant number of pupils in the discontinued schools for that funding period as the relevant number for the purposes of paragraph 1(c);

(c) in funding period 3, and is a replacement for two or more schools being discontinued in funding period 3, its guaranteed funding level must be calculated in accordance with paragraph 2, save that the figure in respect of the new school’s redetermined adjusted budget share for funding period 2 is to be determined using the sum of the relevant number of pupils in the discontinued schools for that funding period as the relevant number for the purposes of paragraph 1(c).

Special Schools

5.—(1) A local education authority must provide in their formula that any amount allocated in accordance with regulation 16(1)(a) in respect of a place at a special school—

(a) for funding period 1 must be at least 2.1% higher than the amount initially determined in relation to the financial year beginning on 1st April 2007 in respect of a place appropriate to a pupil with the same characteristics at that school under regulation 15(1)(a) of the 2006 Regulations;

(b) for funding period 2, must be at least 2.1% higher than the amount initially determined in relation to funding period 1 in respect of a place appropriate to a pupil with the same characteristics at that school under regulation 16(1)(a) of these Regulations; and

(c) for funding period 3, must be at least 2.1% higher than the amount initially determined in relation to funding period 2 in respect of a place appropriate to a pupil with the same characteristics at that school under regulation 16(1)(a) of these Regulations.

(2) (a) That portion of the redetermined budget share of a special school for funding period 1 calculated otherwise than in accordance with regulation 16 (but not including adjustments due under regulation 23 (excluded pupils)) must be at least 2.1% higher than that portion of the initially determined budget share for the financial year beginning on 1st April 2007 calculated otherwise than in accordance with regulation 15 of the 2006 Regulations but not including regulations 21, 22 (prior year adjustments) and 23 (excluded pupils) of those Regulations; and

(b) that portion of the initially determined budget share of a special school for funding period 2 or 3 calculated otherwise than in accordance with regulation 16 (but not including adjustments due under regulation 23) must be at least 2.1% higher than that portion of the initially determined budget share for funding period 1 or 2, as the case may be, calculated otherwise than in accordance with regulation 16 of these Regulations but not including adjustments due under regulation 23.