drb provide financial management services for schools and academies

This week saw the final responses from the government on the consultations which have taken place on school funding. These changes are in detail, ground breaking, as the formula finally takes the path which will see 100% pure and direct delegation to all schools in 2020, effectively by-passing LAs.

Here are the main points:

  • In 2018-19, every LA to receive funding base on a 0.5% cash increase per pupil.
  • In 2019-20, every LA to receive funding base on a 1% cash increase per pupil.
  • Minimum per pupil level of funding by 2019/20 of £3,500 for primary (transitional amount of £3,300 in 2018/19) and £4,800 for secondary (transitional amount of £4,600 in 2018/19).
  • Lump sum of £110,000 per school. To be reviewed at a later date. Could disappear in future years with a further movement to a fully pupil led funding model.
  • Increase in the unit value of IDACI band C and all 6 IDACI bands to be used to distribute money.
  • From 2020 all money will by-pass LAs and go directly to schools under the hard NFF (National Funding Formula.
  • Current national average of funding between primary and secondary to be maintained at 1:1.29.
  • Up to 3% gains per pupil for underfunded schools and a minimum cash increase of 1% per pupil by 2019/20 compared to their baseline, in respect of every school.
  • New limited flexibility to allow LAs to set an MFG of between 0% and minus 1.5% per pupil.
  • Soft implementation of formula in 2018/19 with transition to 2019/20 and hard formula from 2020.

How this affects school models from a collaborative perspective is yet to be seen. The by-passing of funds directly to schools with a mixture of point 4 could lead to greater formal collaboration between schools (e.g. federation or MAT).

If your school is predicting difficult times ahead on its financial planning please do not hesitate to contact me at husham.khan@drbschoolsandacademies.co.uk

Husham Khan

Author Husham Khan

More posts by Husham Khan

Leave a Reply