Supply and Demand of School Places for Section 106 Agreements
Revised guidance note January 2009
From Contracts and School Organisation, Children School & Families, to Development Control, Environment & Regeneration Introduction Paragraph 3.1.10 of the “Planning Obligations” Supplementary Planning Document published in July 2006 stated a means to work out the child yield cost for housing developments. It also states “When there is no shortfall in school places for either school type in the borough but improvements are required then the 10% figure will be required per unit as a multiple of the combined primary and secondary child yields. This will be a contribution towards improvements in education facilities in the immediate vicinity of the development.” This document clarifies the latest position on the supply and demand of school places to clarify when developers need to make the 100% contribution and when the 10% contribution. Since the last guidance note provided in August 2006 there has been a major change in the demographics of LB Merton, with a sharp rise in the birth rate, and therefore future child population that was not forecast by the GLA (Greater London Authority) at that time. The council will therefore be having a significant deficit of school places at primary age over the next few years which will transfer to secondary age. Housing developments would have an additional impact and therefore an additional cost for which a S106 contribution is the recognised means to pay for this impact from residential development.
Primary Schools
General background position A report to the Admissions Forum on 3 November 2008 confirmed the following position: Since the summer of 2007, with the release of 2006 birth rate information, the Authority has been aware that we are experiencing a sustained major increase in primary numbers, with the problem affecting reception year before flowing through the school. Rising demand for primary school places is a significant issue in London, and LB Merton’s neighbours are experiencing similar challenges to address.
New information indicates this increase will be more severe than previously reported including the report to the Admissions Forum on 30 June 2008. This is due to: Actual reception year roll numbers being higher than forecast in 2008/09; if this trend of a higher ‘pupil survival’ from birth to reception year continues it will have an impact on future numbers from 2009/10 Release of 2007 birth figures for Merton show a significantly higher birth rate for 2007 not previously forecast by the GLA (Greater London Authority), which will impact in 2011/12 reception year Previously it was forecast a minimum of 4FE (forms of entry – a form is a class of 30 pupils) expansion was required by 2010/11. As a result of the analysis detailed in appendix 2 this forecast has increased to 7 FE by 2010/11, with a further 5FE in 2011/12 making the total expansion 12 FE.
Summary of the increase The main reason for the actual and projected increase in pupils numbers is a rapid increase in the birth rate, which has accelerated by unprecedented levels since 2002/03, the cohort that entered reception year in 2007/08. The following are the birth rates with the increase compared to 2002/03 (2007/08 reception year cohort): Yr enter reception Birth Year Birth figure Increase in births since 02/03 (07/08 reception year cohort) 173 281 360 638
2007/08 2008/09 2009/10 2010/11 2011/12
2002/03 2003/04 2004/05 2005/06 2006/07
2612 2785 2893 2972 3250
The council is now in a position where a substantial increase in places are required, with the related capital cost. This will be exacerbated by the child yield from further housing development. Local position Merton divides itself into 6 areas for the planning of school places. These are consistent with current ward boundaries as follows:
School Planning Area 1 2 3 4 5 6
Wards Raynes Park, Village, Hillside West Barnes, Canon Hill and Lower Morden Abbey, Trinity, Dundonald, Merton Park, Wimbledon Park Ravensbury and St. Helier Colliers World, Lavender Fields, Graveney, Figge’s Marsh, Cricket Green Longthornton, and Pollards Hill
The position in relation to supply and demand of school places is as follows: Areas 1, 2, 3, 4 and 5 All these areas have few places available, and none forecast in the next few years without further expansion. Since this would be exacerbated by the child yield from further housing development a 100% contribution is essential. Area 6 This area still has some surplus places and the latest GLA (2007-based) forecasts do not forecast an increase. Whilst this is subject to change the current position, unless there is a major housing development, is that only the 10% contribution is required. This is an important area to address deprivation and investment in schools is a major part of this so the 10% of the cost factor should be sought.
Secondary Schools
There are no formal planning areas for secondary schools as travel distance is greater. However, if a development was in a particular area that meant pupils would no longer obtain a place at their preferred school, it is reasonable that a developer should pay for expansion of the school, rather than contribute to pupil displacement. There are currently a small number of surplus places in the Mitcham area, but the forecasts from 2013 show that the demographic growth will impact on the secotry sector and rapid expansion of secondary schools will be required. Therefore a 100% contribution for all applications should be sought from developers, with the exception of area 6 - Longthornton and Pollards Hill wards.
SUMMARY:
Primary and secondary schools: Raynes Park, Village, Hillside, West Barnes, Canon Hill, Lower Morden, Abbey, Trinity, Dundonald, Merton Park, Wimbledon Park, Ravensbury and St. Helier, Colliers World, Lavender Fields, Graveney, Figge’s Marsh, Cricket Green wards: 100% of the Merton cost factor for school expansion Longthornton, and Pollards Hill wards: 10% of the Merton cost factor for school improvements in deprived areas
Updated DCSF cost multiplier
The 2008-9 multipliers for a capital cost per child based on projected pricing levels at Q4 2008, with the DSCF uplift for Merton are as follows:
x x
Primary — £12,257 x 1.12 Merton location factor = £13,728 Secondary — £18,469 x 1.12 Merton location factor = £20,685
These multipliers are the averages of multipliers for new schools and extensions to existing schools, weighted to reflect the national balance of such projects. These figures are published on the Department fro Children Schools and Families (DCSF) Teachernet website. At the time of writing this is provided on the following link: http://www.teachernet.gov.uk/management/resourcesfinanceandbuilding/scho olbuildings/schooldesign/costinformation/