EDUCATION FUNDING
Dedicated Schools Grant (DSG)
The DSG is a ring-fenced grant to cover “Schools Block” expenditure, except for sixth
forms, as defined by the Section 52 statement. This grant was introduced from April
2006 and replaces the previous “Schools Formula Spending Share” (SFSS), funded as
part of the Council’s overall settlement.
2005-06 was taken as a baseline year, based on the “Schools Block” budget (S52) for
2005-06, less LSC funding, divided by the number of pupils. This amounted to
£3188.13.
The DSG settlement for 2006-07 and 2007-08 has been announced for each authority,
defined as an amount per pupil for each year. In Bedfordshire’s case this is £3,406.56
and £3,632.61, representing an increase of 6.9% and 6.6% respectively, over the
previous year.
Based on anticipated pupils this gave an indicative DSG of £205.85m and £218.85m, to
be adjusted by final pupil numbers.
Schools Block
The schools block has two main components:-
o Individual Schools Budget (ISB), which comprises all the amounts devolved to
Schools from the DSG and the LSC (for sixth forms)
o Central Expenditure, which relates to Schools facing services provided by the
authority, from centrally retained funds.
Funds are delegated to Schools via a Schools Funding Formula, which is governed by
DfES regulations, but determined locally, by the authority. Any changes to the Formula
and the distribution of any increases must be consulted via the Schools Forum. A guide
has been published in respect of the 2006-07 and 2007-08 formulae.
The key elements of Central Items are:
o Special Educational Needs – provision for statemented pupils, support for
inclusion, pupil referral Units, behaviour support units, education out of school
and fees to the independent sector.
o Early Years Provision – provision of nursery education outside of maintained
schools and payments for such provision to the private, voluntary and
independent sector.
o School Admissions
o Licences and Subscriptions
o Expenditure to supports grants - chiefly the Standards Fund
o Capital funded through revenue – capitalised repairs and maintenance and ICT
developments.
Central Expenditure Limit (CEL)
There are regulations in place to control the growth of the central expenditure. In
particular, the Central Expenditure should not grow by a greater percentage than the
amount delegated to schools (ISB). Any breach of the limit must be specifically
agreed via the Schools Forum.
Minimum Funding Guarantee (MFG)
The MFG is a guaranteed increase per pupil for each school. It is based on the DfES
calculation of average cost pressures.
The guarantee formula works out a baseline figure based on the previous year’s
funding divided by pupil numbers. This gives a unit cost for the school, to which the
MFG is applied.
The MFG amount for 2006-07 was 3.4% for middle/secondary schools and 4% for
primary schools.
In 2007-08 it is 3.7% for all schools.
Bedfordshire has relatively few schools receiving MFG “top up” funding i.e. where
the formula produces a result below the MFG level. In 2006-07 17 schools have
received MFG top-up totalling £186k. The 2007-08 indicative budgets show 31
schools receiving MFG top-up totalling £245k.
Section 52 Statement (S52)
The Section 52 statement is a statement of the authority’s total education budget, as
determined by statute. A two year statement has been issued for 2006-07 and 2007-
08.
It includes the Schools Block, as set out above plus the “LEA budget”. This element
is funded from the overall council settlement not the DSG. The LEA budget
comprises the following headings:-
o Strategic Management
o Non-devolved grants
o SEN administration, including Educational Psychology
o School Improvement
o Access, including Asset Management, School Transport, Education Welfare,
Music, Arts, Outdoor Education.
o Youth and Community, including the Youth Service, Adult and Community
Learning.
Schools Funding/Budgets
Schools are required to provide a two year budget for 2006-07 and 2007-08, signed
by the Head teacher and Chair of Governors, by 31st May, following approval from
the full Board of Governors.
Funds available to the school and notified to the school by the authority include;-
o Individual Schools Budget (as above)
o Schools Standards Grant (SSG)
o Standards Funds, including formula capital and the School Development
Grant (SDG)
Other funds may include specific grants and school funds (PTA)
Devolved Funding and the Scheme for Financing Schools
Bedfordshire’s Scheme for Financing Schools (formerly the Local Management of
Schools Scheme) is based on the legislative provisions in sections 45 – 53 of the
School Standards and Framework Act 1998 (the Act) and the School Financing
(England) Regulations 2006.
This scheme sets out the financial relationship between the LEA and the maintained
schools, which it funds.
This scheme and the requirements relating to financial management set out in
Bedfordshire’s Financial Regulations for Schools are binding on both the authority
and its schools and must be complied with at all times.
The Scheme must be approved by the Secretary of State.
The Scheme for 2006-08, incorporating changes arising from the funding
arrangements, two year budgets, extended schools regulations and the potential for
clawback of excessive surplus balances has been approved and published.