Issue details

Proposed decision:

That the Cabinet Member for Education and Skills:

(a)  Approve the proposal to the School Funding Forum that funding for the following services should be provided from the schools’ budgets in line with the funding all schools receive under the National Funding Formula, as is currently the case for Academies, and that the Council no longer provides its own additional funding for these purposes:

·         School improvement and intervention support for maintained schools and PRUs;

·         Moderation of national curriculum key stage assessments;

·         Support to governing bodies when recruiting their headteacher; and

·         Redundancy and associated pension costs relating to school staff.

(b)  Delegate authority, subject to the agreement by the School Funding Forum to the proposals and the final outcome reflecting the Policy decision made above by the Cabinet Member, to the Corporate Director for Children, Young People and Education to take relevant actions including but not limited to entering into relevant contracts or other legal agreements as required, to implement the required changes to give effect to the decision

Reason for the decision

The national funding arrangements for schools and local authorities has been shifting over the years.  With the introduction of the School Funding Reforms in 2013-14 Local Authorities were directed to delegate a number of former centrally retained Dedicated Schools Grant (DSG) budgets to schools for the first time. At the time, a total of £8.7m of DSG funding was delegated to schools from 1 April 2013 and at the same time, local Schools Funding Forums were given the powers to de-delegate funding. This is where some of this funding is returned to the LA for certain categories of spend where better efficiency could be achieved through central delivery by the LA.

The Education Services Grant (ESG) allocated to local authorities by the Government for the provision of statutory services in relation to schools was withdrawn in 2016/17. The DfE introduced a provision within the School Funding Regulations for local authorities to agree a contribution from LA maintained schools budget shares towards the cost of statutory services. This principle reflects the charge that most Multi Academy Trusts (MATs) place on their schools for central services.

Between 2017 and 2023 the Local Authority School Improvement Monitoring and Brokering Grant was allocated to local authorities to support them in fulfilling their statutory school improvement functions. When this was withdrawn in 2022/23, local Schools Funding Forums were given the powers to de-delegate and return some of this funding to the LA. The DfE’s withdrawal of grant reflects the fact that Academy Trusts are expected to fulfil the same functions for their schools, and that the funding to do so comes from the budgets of the schools in their trusts.

With the introduction of the National Funding Formula and the withdrawal of DfE funding to Local Authorities to support schools, we have seen funding shifting from Local Authorities to schools to pay for services.

The Council currently funds a range of services which are provided to maintained schools.  Following consultation with maintained mainstream and special schools, and pupil referral units (PRUs), a decision is needed as to whether the Council or schools’ budgets will pay for certain services in 2025-26.

Background

The Council currently funds:

·   School improvement and intervention support for maintained schools and PRUs;

·   Moderation of national curriculum key stage assessments;

·   Support to governing bodies when recruiting their headteacher; and

·   Redundancy and associated pension costs relating to school staff.

The grant funding the Council previously received to provide these services has, to all extents, ended, and the funding transferred to schools budgets.  Schools and PRUs are being consulted on whether the costs of providing these services should in future be met via their budgets, either directly, or through either de-delegation or top-slicing as allowed for by Regulations.

Options (other options considered but not proposed)

A review of the services provided to schools by the Council considered, for each area of service delivery, whether the service should “continue, stop, reduce or change”. . 

For change in 2025-26, four areas of service delivery were identified, and have been subject to consultation.  In respect of school improvement and intervention support, moderation of national curriculum key stage assessments, and redundancy costs the Council has to discharge its statutory duties, thus cannot stop providing the services, but finance regulations provide for the costs of these to be funded through schools budgets (i.e. change).  The option to reduce support continues to exist, but was not the preferred option.  Continuing without change was not seen as a viable option, because funding has moved from the Council to schools.  In respect of headteacher recruitment support, the proposal is to cease providing this support for free.  Schools are responsible for recruiting staff.  Options to de-delegate funds or simply buy support when required were included in the consultation.

How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026

Priority 1 of Framing Kent’s Future sets out the Council’s commitment to maintain KCC’s strategic role in supporting schools in Kent to deliver accessible, high quality education provision for all families.  It states the Council will maintain improvement support services for all Kent schools, including maintained schools and academies, to maintain Kent’s high-quality education system.

The proposals seek to secure the funding necessary to enable the Council to deliver this commitment. 

How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf

The Council has continued to provide the above services, partly funded by de-delegated funding from schools (£1.5m), but with a further £1.5m from its own resources.  The proposals would result in schools meeting the full costs.