Agenda item

Claire White presented the report on the DSG 2015/16 and draft budget.

The DfE announced the DSG settlement 2015/16 on 17^th December.

The Schools’ Block

West Berkshire has received a small increase in the per pupil rate of £9 from £4,359 to £4,368, after taking into account the deduction for the carbon reduction commitment, which results in an increase of grant of £198k using the October 2014 census pupil numbers. The increase in per pupil rate is due to the Government allocating additional funding to the least fairly funded local authorities, whereby West Berkshire fell just below average.

The total DSG funding overall has increased by £966k to £96.093m. It is assumed that there will be no carry forward from 2014/15 to 2015/16 as the under spend on the falling rolls fund and growth fund will offset the £166k over spend carried forward in 2014/15. The budget estimate is £95.740m resulting in £353k headroom. The Heads Funding Group recommended that the headroom is to be allocated to schools on a per pupil basis, rather than incorporated into the High Needs Block, particularly as many of the High Needs savings will require schools and early years’ establishments needing to purchase more services if required.

DECISION: The Schools Forum agreed that the schools block headroom be allocated out to schools.

The Early Years Block

The funding rate for the early years block will remain the same in 2015/16. For the first time 2 year olds will be funded on a pupil count (5/12ths January 2015 census and 7/12ths January 2016 census). The initial 2015/16 budget is based on forecast numbers and funded hours as the January census data is not yet available.

There is likely to be a significant under spend in 2014/15 (currently estimated at £762k) due to low take up of two year old places. The Early Years Steering Group will be requesting a carry forward of the 2014/15 under spend to maintain funding rates and provide a contingency for the volatility of funding and place take up. The final decision will need to be made at the March meeting.

The current estimate of early years DSG funding 2015/16 is £7.934m and the budget estimate is £7.560m resulting in £374k headroom in 2015/16. This will be updated at the next meeting once data is received from the January 2015 census.

The recommendation from the Heads Funding Group is to retain the early years’ headroom to offset any shortfall in both the early years and high needs blocks in 2015/16.

ACTION: The early years’ block 2015/16 will be further considered at the next HFG and a decision will be made at the Schools’ Forum meeting in March.

The High Needs Block

The High Needs Block has been fixed at the 2014/15 level plus an additional £144k from national headroom and £17k for the full year effect of increases in the 2014/15 academic year places. The bid for funding for additional places in 2015/16 was unsuccessful and will now need to be found from existing grant allocation. It is estimated that £200k will remain of the contingency budget to carry forward into 2015/16. The total High Needs DSG funding is £17.911m and the budget estimate is £18.961m resulting in a shortfall of £1.050m. The savings to be considered in agenda items 8 and 9 amount to £843k which would still mean a shortfall of £207k. The HFG agreed in principle with the savings proposals but asked for further information on outcomes for each service and impacts of the proposed cuts. 

ACTION: The high needs block 2015/16 will be further considered at the next HFG and a decision will be made at the Schools’ Forum meeting in March.

Action

HFG

J Seymour / HFG