Management Information Sheet
Outcomes of Fair Funding Consultation 2022/23
Thank you to all the Headteachers, governors, and other stakeholders that completed the 2022-23 Fair Funding consultation online survey.
The Local Authority received 31 completed responses to the online survey. Of these responses:
- 27 were from individual schools within the Primary sector
- 3 were from academy trusts representing multiple academies
- 1 was an individual response from the Chair of Schools Forum
A total of 50 schools were represented within the responses (as the 3 academy trusts represented 23 schools).
The overall ranking of the options following consultation was as follows.
| Option | Overall Rank | Weighted Score* |
|---|---|---|
| Option 1 - Implementation of DfE's National Funding Formula (NFF) unit rates and methodologies, with a transfer of £8.473m of Schools Block (0.5% plus a further 1% to High Needs Block). It is expected that the Minimum Funding Guarantee would be set at +0.50% and there would need to be a funding cap of +2.34%. | 3rd | 85 |
| Option 2 - Implementation of DfE's National Funding Formula unit rates and methodologies, with a transfer of £2.824m of Schools Block (0.5%) to High Needs Block. It is expected that the Minimum Funding Guarantee would be set at +2% but there would be no need for a funding cap on gaining schools. | 1st | 124 |
| Option 3 - Implementation of DfE's National Funding Formula unit rates and methodologies. It is expected that the Minimum Funding Guarantee would be set at +2% and there would be no need for a funding cap on gaining schools. It is estimated that an increase of +1.43% above the NFF Basic Entitlement factor values may be possible. | 2nd | 97 |
*Weighted scores are explained in the "Funding Formula Consultation Responses" report, beginning on page 50 of the 17 November 2021 Schools Forum agenda and papers document.
The LA has not received the level of response seen historically to the annual Fair Funding Consultation since the onset of the pandemic. In the two years prior to the pandemic, an average of 81 responses were received each year so the response rate has since reduced by more than 60%. However, this is understandable given the increased pressures on school leaders, and the LA appreciates all of the responses received during this busy time.
Of those that did respond, there was a preference (based upon the number of schools represented) for Option 2 (0.5% block transfer), with Option 3 (no block transfer) as second choice.
While there was support for a 0.5% transfer from Schools Block to High Needs Block, the LA recognises the pressures on schools' budgets and the desire of many schools to receive the maximum funding possible directly into their budgets via the funding formula, and that maximising funding in schools may support increased inclusivity and reduced escalation of needs. However, the LA must weigh this up against the current and forecast levels of Dedicated Schools Grant (DSG) deficit and be responsible in considering how the current and forecast DSG deficit can be repaid from within the DSG in future years, as required by the regulations.
The LA also recognises the difficulty that this situation presented to Schools Forum members in recommending an option for the 2022-23 funding formula. Schools Forum members were asked to take into account the views of schools' responses from the consultation, but also to consider the wider landscape of the DSG in making their recommendation to the LA.
The findings of the Fair Funding consultation, and a summary of the comments, were taken to Schools Forum on 17 November 2021 for discussion. A copy of the Forum papers and minutes can be viewed at the Norfolk Schools Forum agendas and papers web page.
Due to the continuing pressures within the High Needs Block it was agreed by Schools Forum that a 0.5% transfer of funding from the Schools Block to the High Needs Block (Option 2 of the consultation) would help to support the system as a whole. The need for the LA to submit a disapplication request to the Secretary of State for a further 1% transfer was also discussed at Schools Forum and while Schools Forum could not support an additional transfer at this time, stating that the pressure on High Needs Block is considered a national funding issue that needs to be addressed, support was shown for the LA in trying to find a solution to the current funding shortfall.
Given the current deficit within the Dedicated Schools Grant, the LA reluctantly made the decision that a disapplication request to the Secretary of State was required for an additional 1% transfer from Schools Block to High Needs Block to mitigate the DSG deficit. The disapplication request was approved by the Secretary of State on 21 January 2022 following consideration by the DfE.
This option still provides funding increases via the funding formula for all mainstream schools in the 2022-23 financial year when modelled on like for like (October 2020 census) data. The final formula for 2022-23, based on National Funding Formula factor values and methodologies including the increasing Minimum Per-Pupil Funding values of £4,265 (primary) and £5,525 (secondary) as set out in the autumn consultation, will include a Minimum Funding Guarantee of +0.5% per-pupil with gains capped to +2.82% per-pupil.
The decision was confirmed at Cabinet on 31 January 2022. The full Cabinet report can be viewed online; the Dedicated Schools Grant (DSG) section is found on pages 90 to 143.
Please note that the technical papers that were provided during the consultation process were based on historical (October 2020) pupil numbers and that the final budget shares for 2022/23 will be based on October 2021 census numbers. School budget shares will be published and available for viewing at csapps.norfolk.gov.uk/BudgetShare on 28 February 2022.