Report of the Strategic Director for Children’s and Education Services attached

The Executive considered a report of the Strategic Director for Children’s and Education Services, which provided a summary of the confirmed Dedicated Schools Grant (DSG) allocation from the 2024/25 settlement.

The DSG was a ring-fenced grant of which the majority was used to fund individual schools budgets in maintained schools and academies in the city, early years nursery entitlement and provision for pupils with high needs including those with Education Health & Care Plans (EHCPs) in special schools, special provision and mainstream schools in Manchester and out of city.

The Council received and managed the DSG within four blocks: schools, central school services, high needs and early years.  A large proportion of it was paid directly to schools and other settings to provide the majority of education services. A proportion of the DSG was provided to the Council to deliver education services.

The 2024/25 DSG notification was received on 19 December 2023 and totalled  £735.050m with and an overall increase in DSG since last year of £58.125m

The Schools Block allocation of £537.979m had been calculated bottom up on the basis as if the national funding formula (NFF) was applied at school level.  On average the DfE has increased the formula determined by pupil level data by 1.4%.

The Central School Services Block (CSSB) allocation was £3.864m and supported the Council’s role in education.

The Higher Needs Block (HNB) allocation was £133.475m and provided increased funding for children and young people with special educational needs and disability from early years to age 25 years. The grant increase was 4.10% (£5.262m) this was lower than the increase in the previous two years, which was an on average +14.00% growth. The 2024/25 increase was not expected to cover anticipated inflation and growth in demand and would place pressure on the budget

The Early Years funding had increased by £18.115m and was made up of new free entitlements offer for 9 months olds to two-year-olds and working parents of two-year-olds (£11.888m) and an increase in the hourly rates for existing early year entitlements (£6.227m)  

The funding shortfall for pupils with high needs and central services block within the DSG remained a significant risk for the council.  It must be addressed as the statutory override preventing the council from including the accumulated deficit in its general fund balances was set to end on 31 March 2026.

It was noted that the report had also been considered at a recent meeting of the Children and Young People’s Scrutiny Committee and the committee had endorsed the proposals in the report (Minute CYPSC/23/11).

Decision

The Executive approves the proposed Schools Budget and in doing so notes specifically the following:-

·            All Manchester primary and secondary schools should receive a per pupil increase of 0.5% minimum. The local funding formula’s average per pupil increase is 1.88%

·            Manchester does not intend to propose a 0.5% transfer from the school block to high needs 2024/25, given the anticipated impact of the High Needs recovery plan.

·            Explicit growth fund to include budget for setting up SEN and Inclusion Units in mainstream schools.

·            The 4.10% in the High Needs Block part of the grant is not expected to cover anticipated inflation and growth in demand.

·            The full increase in the early years funding rates to be passed onto providers, across all entitlements.

·            Central services school block (CSSB) funding on a per pupil basis has remained the same as 2023/24. This block will continue to be under pressure to stay within budget, given the additional burden due to the new admission code, with no reduction in other functions councils are required to provide.