The report of the Head of Finance – Children’s and Schools is enclosed.

The Forum considered a report of the Head of Finance – Children’s and Schools which covered the dedicated school grant 2023/24 settlement, outlining the allocation across individual school budgets and the Council’s retained schools’ budget.

Key points to note were as follows:

·         DSG had increased by £38m

·         Additional schools funding of £22m: Mainstream Schools receive £17m and the High Needs Block £5m.

All School Forum members were asked to provide a view and comment on:

·         All Manchester primary and secondary schools should receive a per pupil increase between 0.5% minimum and up to 3.2% on pupil-led funding.

·         Manchester did not intend to propose a 0.5% transfer from the school block to the high needs block in 2023/24.

·         Special schools banded funding to increase by 6.5%, to incorporate Teacher’s Pay Grant and Teachers’ Pension Employer Contribution Grant.

·         Early year two-year-old base rate increase by 6p, with an increase of 22p for three and four-year olds. This would be passed onto providers by increasing the base rate by 5p per hour and adding a new quality supplement of 17p per hour to reflect the rolling in TPG and TPEGC into the funding formula.

·         Central services school block funding has reduced on per pupil basis by 2.5% despite there being an additional burden due to the new admission code, with no reduction in other functions councils are required to provide.

·         Additional Schools Funding 2023/24 will be allocated as a separate grant for mainstream schools. Special schools will receive a 3.4% funding increase on top of the average place and top-up rates, following DfE formula.

The Chair invited questions. A member raised a point of accuracy from the report that The Barlow RC High School was not an Academy.

A member questioned if the £8m increase in the High Needs Block was what was expected and what impact that had on the High Needs Recovery Plan. The amount received was slightly higher than was anticipated. In relation to the High Needs Recovery Plan, the total additional funding was £13m for the high needs block. A report was brought to School’s Forum in September on the High Needs Recovery Plan. It was noted that the risk was if the gap does not reduce, there could be a significant deficit, up to £33m by 2024/25 without a strategy. The Recovery Plan aimed to drive through changes and reduce that deficit. Due to the extra money received and anticipated outcomes of strategies on the Recovery Plan, there was no proposal for the 0.5% transfer from the school block to the high needs block in 2023/24. The reason for that was that there were a number of strategies to reduce the sharp increase in the number of EHCP’s in the City. With having slightly more money than anticipated, it was affordable to allow time for strategies to start to reduce the gap and produce a balanced budget. The 0.5% transfer remains in the recovery plan to be reviewed ready for 2024/25 if strategies do not work as intended.

A Local Ward Councillor queried the reason for pushing back the 0.5% transfer for a year. It was noted that this did not necessarily mean the transfer would happen in the next year. The idea remained on the Recovery Plan to be kept under review. It was not needed for 2023/24 and it was hoped that the strategies in place would begin to have an impact in the time allowed. To not complete the 0.5% transfer leaves more money in schools to assist with the implemented strategies.

On Early Years funding, it was questioned if the 17p included all Early Years Teachers. It was stated that this would include any teacher who was part of Teachers Pension Scheme, and the consultation would go to all settings who employed staff under the teacher’s pay and conditions.

A member sought clarity on what to anticipate in terms of pay increases for teachers and support staff for budget assumptions in the next academic year. It was noted that for support staff the advice was to look at building in around a 4% increase but that this was only a prediction.

Another member sought clarity on when it was expected that schools receive their final statements for 2023/24. It was stated that the final statements should be out before February half-term.

It was requested that a report was provided to Special Schools to explain the funding changes, and this was agreed to.

The Chair thanked Officers for the level of detail contained within the report.

Decision

To note the report.