School Funding- Presentation to the Funding Policy Unit

School Funding- Presentation to the Funding Policy Unit in th June 2013 London- 5 East Riding of Yorkshire Council Christine Atkinson christine. atkinson@eastriding. gov. uk East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 1

Best Outcomes for our Pupils East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 2

Topics • About the East Riding • The funding at LA level • How ER tackled the school funding reform changes • Issues for ER schools • What the ER would like East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 3

The East Riding • 125 primary (2 academy) 23, 743 pupils • 18 secondary (5 academy) 18, 433 pupils • 3 special • 4 nursery • 2 PRUs Largest unitary authority spread over 950 square milesalso coastal Six PFI schools 4 sec and 2 prim all maintained- £ 12 m deficit East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 4

Finance Team-ERYC • Central team- 6 – non schools, capital, budget planning, closedown • Schools Team Schools Management Accountant 2 senior accountants 4 full time assistants/ 3 term-time only (mainly SLA income) (all school funding work/ 2 visits a yr to help schools with budget preparation/ additional peri visits/ school fund audits/ payments to PVI’s/ bank account schools/ academy conversion/ ledger maintainance/ SFVS training/ GB training and attendance at meetings/ payments to other LA schools HN pupils/ tools to assist with monitoring, budget scenarios/ analysis work/ telephone helpline/ Heads and finance staff training East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 5

Finance SLA’s with schools Service SLA -standard SLA- enhanced Additional 10 days Additional 5 days Ad hoc peri GB training School fund audit Amount £ 610 £ 910 £ 1, 515 £ 850 £ 180 a day £ 180 £ 150 No of Schools 105 40 5 11 113 days 6 19 Total East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk Total £ 64, 050 £ 36, 400 £ 7, 575 £ 9, 350 £ 20, 340 £ 1, 080 £ 2, 850 £ 141, 645 6

Pressures on the ERY Council • • 1) 2) 3) 4) 5) In 2013 -14 the LA has to find gross savings of £ 25 m or 4. 2%. Children’s Services savings £ 5 m These have been found partly from: The removal of support to schools £ 0. 445 m School Improvement Service £ 1. 5 m (now traded service) Schools music service £ 0. 181 m Early years £ 0. 932 m Rest, children services transformation East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 7

Issues/ Pressures on schools for 2013 -14 • Funding remained the same but new funding formula redistributed it amongst schools ‘winners/losers’ • EFA funding for 6 th forms reduced • Pay awards/ inflation / pension contribution for support staff increased • Falling pupil numbers- especially in secondary schools • Removal of support from Council £ 0. 445 m • PFI additional pressure £ 0. 647 m • Additional costs for school improvement service etc • Funding for high needs pupils changed • Larger class sizes East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 8

Pupil numbers in mainstream schools Year 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 Primary 23, 370 23, 320 23, 204 23, 631 23, 743 23, 739 23, 984 23, 947 Secondary 19, 650 19, 567 19, 222 18, 783 18, 433 17, 989 17, 551 17, 220 East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk Total 43, 020 42, 887 42, 426 42, 414 42, 176 41, 728 41, 535 41, 167 9

Size of school -Primary No of Pupils excl nursery 0 -54 55 -79 80 -149 150 -199 200 -299 300 -399 400+ (largest 494) Total No of Schools 13 15 31 17 23 15 11 125 East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 10

Size of school- secondary No of Pupils (excl 6 th form) 478 -749 No of Schools 750 -999 4 1000 -1499 5 1500+ (largest 1605) Total 3 6 18 East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 11

The Funding at LA level East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 12

Where is the ERYC in the DSG rankings • In 2012 -13 a GUF of £ 4, 613. 11 placed us as the 8 th worst funded LA out of 151. • (ranges Leicestershire £ 4, 428. 70 to City of London £ 9, 372. 60) • In 2013 -14 the per pupil units of funding are: Schools block £ 4, 257. 73 ‘ 34 worst’ Early years block £ 4, 184. 41 ‘ 91 worst’ High needs block £ 423. 51 ‘the worst’ Overall £ 4, 984 per schools block pupil numbers = 3 rd worst East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 13

GUF • In 2010 -11 the Government added the GUF (£ 4, 014. 55 per pupil) and the standard fund grants (£ 598. 56 per pupil) together to give a GUF of £ 4, 613. 11. • The GUF has remained at this level for 2011 -12 and 2012 -13. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 14

F 40 group • F 40 represents the 40 lowest funded LAs in the country • F 40 letter to Michael Gove (MG)10 th April 2012 requesting an uplift in funding to the level of the 40 th worst funded LA (option to scale down to 1/3)would have meant an additional £ 2. 8 m to us or £ 66. 38 per pupil. (£ 99 m overall) • MG rejected proposal on 5 th July 2012 • F 40 wrote again 16 th July 2012 • MG rejected again 24 th July 2012 East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 15

School Funding Reform East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 16

Funding Reform Timescales • Announcement March 2012 • Changes announced following consultation- 28 June 2012 • Toolkit final version 24 July 2012 • Final data end of July 2012 • Required Council approval 31 October 2012 East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 17

How we tackled the funding changes • Used the modelling toolkit-attended meeting- final version 24 th July, final data a week later • Established principles early on in the process (slide 20) • Reports to FASG, School Forum and The Cabinet • Two School Forum (prim & sec) headteachers saw the toolkit in action • Letter out to schools July 2012 • Presentations to ALL schools (Head, finance officer and governor) in September 2012 - gave each school their 2012 -13 budget based on new formula. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 18

Chart- old and new factors Infant class size funding, energy performance Small school support, incremental drift, teacher mobility, High pupil turnover, grounds maintenance, swimming, Practical Learning BASIC PER PUPIL ENTITLEMENT Schools Standard Grant Personalisation ·Attainment ·Free meals ·Pupil Led One to One Tuition Targeted Primary/Secondary Strategy DEPRIVATION Social Deprivation ·IMD ·LAC + at risk Learning Support Unit Extended Schools (me too) Personalised Learning ·Attainment Element ·IMD Eleme nt SEN without Statements ·IMD School Meals LAC ·Block ·P ·ATTAINM ENT Statements Formula ·IMD ·FSM take up u p i l L e d ·ATTAIN MENT Specialist Schools (Pupil Led) Schools Standard Grant (SSG) ·Pupil Led ·Block Sum LOW COST HIGH INCIDENCE SEN EAL SEN Support Services ·IMD ·ATTAINMENT School Development Grant (SDG) ·Attainment ·Deprivation ·Pupil Element ·ICT (Pupil Led) ·Enterprise Learning ·ICT (Block) ·SDG (Block) LUMP SUM Travellers School and early admissions block EAL- funding during the year The 37 funding factors currently used to allocate funding to East Riding Schools will reduce. Out of the 12 allowable factors, 3 are not applicable to the East Riding. In addition to the 6 factors above, there will continue to be factors for rates, split site and PFI funding. Early Years and Statements are excluded from the numbers quoted as these are funded separately under the new arrangements from April 2013. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 19

Principles used in modelling • The amount allocated to the primary and secondary phases to remain the same. • To minimise turbulence. • Distribute same through deprivation • Fund pupils not ‘schools’ East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 20

New Formula • Simple and transparent – achieved • Does it allocate funding where we see the need– no Why- Inflexible, each school is different – buildings, staff costs, number of pupils in a class. Does not give pupils in the same size school with similar pupil characteristics the same chances eg. new school vs old school, inexperienced vs experienced teachers East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 21

ERYC Pro-forma Factor Amount % Per pupil £ 138. 301 m 78. 25% Deprivation £ 9. 852 m 5. 57% LAC £ 0. 244 m 0. 14% LCHI SEN £ 4. 725 m 2. 67% EAL £ 0. 212 m 0. 12% Lump sum £ 18. 590 m 10. 52% Split sites £ 0. 455 m 0. 26% Rates £ 3. 335 m 1. 89% PFI £ 1. 037 m 0. 59% East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 22

Comparing one LA to another • Leeds v East Riding (example only) Leeds £ 279. 95 per pupil more schools block Run ER values through Leeds unit values – Leeds needs £ 2 m more- how can this be? Not strictly true PFI Leeds £ 7 m ER £ 1 m Retained growth Leeds £ 1. 8 m ER £ 0. 172 m Also : Centrally retained Leeds £ 8 m ER £ 2. 5 m Therefore big health warning when comparing proforma’s East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 23

Values – lump sums Old formula, through the school block and early years block we gave out £ 16. 12 m plus school meals block £ 0. 75 m and SSG block £ 1. 716 m = £ 18. 586 m. Block varied according to size and phase- flexible • New 143 schools * £ 130, 000 = £ 18. 590 m (125 prim and 18 sec) • Breakeven 190 pupil primary and 1024 pupil secondary East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 24

Range of ‘Winners’ and ‘Losers’ - Primary Pupil Numbers Pre MFG/Cap Largest Loss £ Gain £ Post MFG/Cap Largest Loss £ Gain £ Under 80 (29) -67 k +15 k -4 k +3 k 80 -149 (29) -70 k +30 k -9 k +5 k 150 -199 (17) -62 k +60 k -11 k +7 k 200 -299 (24) -61 k +76 k -16 k +10 k 300 -399 (13) 400+ (13) -54 k -118 k +89 k +101 k -22 k -26 k +14 k +18 k East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 25

Range of ‘Winners’ and ‘Losers’ - Secondary Pre MFG/Cap Post MFG/Cap Pupil Numbers 500 -749 (4) Largest Loss £ -93 k Largest Gain £ N/A Largest Loss £ -46 k Largest Gain £ N/A 750 -999 (6) -248 k N/A -66 k N/A 1000 -1500 (5) -70 k +85 k -70 k +73 k 1500+ (3) N/A +327 k N/A +88 k East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 26

MFG and Capping New Formula– 57 Primary schools on MFG £ 1. 568 m 6 Secondary schools on MFG £ 0. 333 m 48 Primary schools capped £ 1. 318 m 6 Secondary schools capped £ 0. 583 m Funded per the formula 20 primary schools 6 secondary schools East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 27

Why ‘winner or loser’ • Historic grant funding • Formula factors that can no longer be used ie ICSF, energy, incremental drift, small school support etc • Different pupil numbers used • Different data set • Only one lump sum East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 28

Issues for ER schools Low funding Pockets of deprivation Large rural LA with a wide range of school sizes- large number of schools compared to pupils Condition of buildings East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 29

Pupil Premium Worst 21 st ER 133 rd Leeds 2012 -13 Pupils £ 4. 912 m 42, 176 £ 19. 447 m £ 8. 742 m 95, 072 31, 807 £ 10. 261 m 84, 569 Average pp £ 116. 48 £ 204. 56 £ 103. 19 2013 -14 £ 7. 096 m £ 28. 094 m £ 12. 629 m £ 12. 607 m 2014 -15 £ 9. 462 m £ 37. 459 m £ 16. 839 m £ 16. 809 m Average pp £ 224. 35 £ 394. 01 90 th Hull £ 274. 86 £ 529. 41 East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 10 th Leicestershire £ 198. 76 30

Educating Hull pupils • Out of a total number of pupils including nursery 46882, 3046 are from Hull 6. 5% ER schools block £ 4, 257. 73 Hull £ 4, 713. 02 Diff £ 455. 29 * 3046 = £ 1. 387 m Also if from deprived postcodes takes money out of overall ER pot to fund deprivation East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 31

Pupil premium v schools block If pupil premium funding was in the formula and allocated to LAs on pupil numbers the ERYC would be better off by: • Total pupil nos 6, 677, 261 - ER 42, 176 0. 6316% • Total PP 2012 -13 £ 1, 181 bn ER £ 4. 9 m 0. 415% If pp funding had been given out on pupil nos ER would get £ 7. 459 m an extra £ 2. 559 m in 201213 (13 -14 £ 3. 695 m 14 -15 £ 4. 927 m) East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 32

Pockets of Deprivation Size of primary 0 -54 55 -79 80 -149 150 -199 200 -299 300 -399 400+ Range £ 1800 - £ 17100 £ 900 -£ 22500 £ 900 - £ 32400 £ 3600 -£ 90900 £ 4500 -£ 105300 £ 9000 -£ 187200 £ 13500 -£ 110700 No on FSM 6 3 -19 (5%-34% 1 -25 (2%-35%) 1 -36 (1%-37%) 4 -101 (2%-63%) 5 -117 (2%-40%) 10 -208 (3%-53%) 15 -123 (3%-25%) East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 33

Please Lets not forget about ensuring there is enough funding to educate those pupils that are not from deprived backgrounds East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 34

Food for thought How fast can schools react to change and unpredictability and forward plan? Budgets in the ER are tight already: funding is low- no increase for 3 years increase in costs year on year (combined with reduced rolls) what will happen to MFG/ pupil premium/ new builds? How can this not lead to: 1) increase class sizes ? 2) less investment in buildings ? 3) lack of resources ? How can this lead to increased standards? East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 35

Old formula – not perfect • Government priorities • SDG- ie Sutton v Rawcliffe (see handout) • We were going to launch our own consultation with schools to move away from the old SF grants – would have created winners and losers • MFG protects these imperfections East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 36

Lump sums- impact on a rural LA LA ERYC No of Pupils 41, 176 No of Lump schools 143 £ 130 k Redbridge 42, 185 70 £ 123, 343 4. 56% £ 9. 0 m Barnet 42, 287 108 £ 122 k 6. 39% £ 4. 27 m Leicester 42, 700 98 £ 100 k 5. 00% £ 4. 5 m Bolton 111 £ 150 k 9. 11% £ 4. 8 m 40, 932 % dist Freed up 10. 52% East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 37

Sparsity factor at LA level The allocation of lump sums across different LAs with similar pupils numbers, demonstrates how costly it is to a LA to have a higher proportion of schools compared to pupil numbers. The ERYC would like this to be recognised at national level This is not a local issue as a flexible lump sum would address this and we are not in favour of a 13 th factor for sparsity Funding is spread more thinly over other factors as a higher % of the overall funding goes on the lump sum. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 38

Change of pupil count date • January 2012, October 2013 - budgets out sooner – great - mfg calc used October 11 pupil numbers for 201213 budgets- challenged several times - lack of consistency-1) pupil premium still based on January – still no final 2013 -14 allocations (could use same as dataset) 2) sports grant – based on January pupil numbers – still no final allocations East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 39

School closures- proposal Currently at the consultation stage of 3 primary schools Two with high per capita costs- One listed on a recent publication as one of the 50 highest primary schools per capita costs by David Laws. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 40

Impact on a village if school closes Will vary depending on whether the school is the ‘heart of the community’ and therefore has the greatest impact. – becomes a ‘retirement community’ Where the school plays no other part than to educate, the village often carries on as before Very hard to say with any certainty East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 41

Small village schools • Inflexibility eg. Teachers don’t leave- results in high cost teachers • Class size implications- volatile pupil numbers – a few pupils number change makes a big difference – lumpy intakes/ split age classes • Low ISR for heateachers- recruitment and retention issues • Headteachers have a teaching commitment/ who is in charge when not in school ie out on courses etc • Segregation of duties/multi tasking • Economies of scale ie school meals • Old victorian school house- no hall – does not lend itself to current educational needs • High proportion of SEN pupils – resources diverted to meet their needs The old ERYC funding formula addressed these issues East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 42

Rural- additional costs/ issues • Difficulty with collaboration and partnership working- distance apart- although some very good examples in the ER where this is working well. • Holding meetings/ training sessions-distance to travel • Transport links • Distance not as the crow flies • More premises to fund- lump sums • Headteacher recruitment- small field of applicants • Falling rolls in secondary schools, temporary staff appointments/ redundancies/ recruitment, retention in subject areas East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 43

State of school buildings- see handout • Old buildings– Diverts funding away from teaching and learning (including IT) to running and maintenance costs of the building – Size of rooms, some schools still needing major overhaul – Roofing/ boilers/ toilet refurbishments/ general r&m/ high energy costs New funding formula does not recognise this in any way. Devolved capital only enough to cover minor works East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 44

ERYC Capital Position • 145 schools in ERYC (excludes 7 academies) • £ 445 m – estimated cost of capital works required • 2013/14 Funding £ 6. 421 m (excludes Devolved Capital) • 69 years to fund works required • No Building Schools for the Future in ERYC • 4 ERYC Schools in Priority School Building Programme (includes 2 academies) • In comparison Hull’s BSF Programme £ 400 m East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 45

High needs pupils in other LA’s • ER have 135 High Needs pupils in 24 settings across 3 other LAs, Hull, York and North Yorkshire. • Only 10 settings responded to our letter after 4 weeks. • No agreement reached with any setting yet. • Time consuming nightmare! East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 46

What the ER would like • Formula changes to reflect - Variable lump sum on size and sector of school A factor to reflect the condition survey of school buildings A factor to reflect class sizes and ICSR’s 3 year averages for attainment data BUT must have a fair allocation of the overall funding potwhich includes recognising sparsity and the additional costs associated with a rural authority. If not just moving money around, creating different winners and losers East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 47

Suggestion KS 1 funding- As the DFE will already have the data on the number of pupils in KS 1, have the number of ‘phantom’ pupils to bring up to the next multiple of 30 as a factor and let LAs attach a value. Very simple and transparent and will fund KS 1 classes appropriately to meet ICS regulations. East Riding of Yorkshire Council County Hall Beverley East Riding of Yorkshire HU 17 9 BA Telephone 01482 887700 • www. eastriding. gov. uk 48