Agenda item

To consider a report on the Schools Funding Formula and Early Years Funding Formula 2025/26.

Councillors G Smith joined the meeting during consideration of this item.

The Committee considered a report on the Schools Funding Formula and Early Years Funding Formula for 2025/26.

The Committee were asked to take into account the recommendation from the Schools Forum when considering the schools funding formula.

Officers reported that from a financial perspective linked to the DSG management plan the recommendation would be to approve the 0.7%.

It was noted that there was a typo in the table at paragraph 11, page 30 of the report and that the third column heading should say 2025/26.

Officers referenced the 7-year plan that was in place to reduce the Dedicated Schools Grant (DSG) deficit and explained that the plan had been built around a 0.7% transfer so further mitigations would be required if the 0.7% transfer was not agreed. Despite not being approved for the Safety Valve programme, officers had continued to work alongside a Department of Education (DfE) advisor and they had provided support for the 7-year plan.

Although officers had provided additional support for schools giving a breakdown and clearer understanding of the schools funding formula, and encouraging more attendance at the Schools Forum, there were concerns raised by the Committee that there had been a low turnout at the meeting of the Schools Forum at which the recommendations to Children and Families Committee were voted on. Members requested update reports in year on the steps being taken to improve attendance.

The Committee also raised concerns around the poor response to the consultation and asked what impact it would have on the Councils relationship with schools if the Committee agreed to approve a transfer of 0.7% from the school’s block to the high needs block despite the Schools Forum recommending a transfer of 0.5%.

Officers assured the Committee that the difference between the 0.5% and 0.7% of £600k would be redistributed to schools, focusing on inclusion and providing support such as bringing support staff directly into classrooms which was already having an impact. Historically money remaining in schools had not worked and to drive transformation support needed to be put in place for schools to start doing things differently and this was being done as a partnership with the Council.

Officers agreed to take the Committees comments back to the Schools Forum.

The recommendations were proposed and seconded, and on being put to the vote a recorded vote was requested for recommendation 1va with the following results:

FOR

Councillors S Adams, R Bailey, N Cook, D Edwardes, B Posnett,
J Saunders

AGAINST

Councillors C Bulman, B Puddicombe, H Seddon, G Smith

NOT VOTING

Councillors M Beanland, S Bennett-Wake

The motion was declared carried with 6 votes for, 4 votes against and 2 not voting.

RESOLVED:

That the Children and Families Committee:

Schools Block (by Majority)

1.          Approve a formula for the adoption of the Schools Funding Formula 2025/26:

                                i.        The use of a local funding formula that uses the Department for Education (DfE) national funding formula factors, uplifted for the Cheshire East area cost adjustment, and with any additional funding being allocated via the basic entitlement factor. The formula factors are set out at Appendix 2 of the report.

                               ii.        The use of -0.5% as the minimum funding guarantee percentage.

                             iii.        The use of notional SEN formula of 100% Low Attainment, 50% FSM and FSM6, 25% IDACHI.

                             iv.        Setting a local Growth Fund at a value of £0.757m.

                               v.        a. Approve the level of block transfer of 0.5% to implement from the school’s block to the high needs block.

2.          Provide delegated authority to the Executive Director of Children’s Services to use the schools block grant and the mainstream schools additional grant in accordance with relevant guidance during 2025/26.

3.          Provide delegated authority to the Executive Director of Children’s Services to make disapplication’s to the DfE should it be required during 2025/26.

Early Years Block (by Majority)

4.          Approve the following for the adoption of the Early Years Funding Formula for 2025/26:

                                   i.     The continued use of the current funding formula that passes 95% of the funding allocation to providers of the early education entitlements and increase the hourly rates by the same percentage increase as the increased funding from the DfE.

                                  ii.     Continue to allocate up to 2% of the funding allocation to create a Special Educational Needs Inclusion Fund (SENIF).

                                iii.     The new funding rates. The proposed rates for 2025/26 are set out at Appendix 4 of the report.

5.          Provide delegated authority to the Executive Director of Children’s Services to accept in-year budget increases and use the early years grant in accordance with relevant guidance during 2025/26.

6.          Delegate authority to the Head of Service Early Years, Family Help & Prevention to enter into revised contracts with providers in accordance with the DfE funding increase during 2025/26.

High Needs Block (by Majority)

7.          That the committee approves the provisional budget allocations of the high needs block and additional high needs funding as set out in Appendix 5.

8.        Provides delegated authority to the Executive Director of Children’s Services to use the high needs block and additional high needs funding in accordance with relevant guidance during 2025/26.

Central Schools Services Block (by Majority)

9.    That the committee approves the provisional budget allocations and use of the central schools services block as per Appendix 6 of the report.

10. Provides delegated authority to the Executive Director of Children’s Services to use the Central Schools Services grant in accordance with relevant guidance during 2025/26.

Councillor J Bird joined the meeting.