Planning three years ahead

Ray Barker, director of the British Educational Suppliers Association (BESA), considers new funding arrangements as we move towards ‘children, schools and families’

November 2007 saw the much-awaited allocation of funding for education for the next three years. With the change in focus to ‘children, schools and families’ and three-year budgets now confirmed, the Minister for Schools and Learners Jim Knight said that the “stable funding deal would build on the record investment of the last 10 years and would support the drive to further raise the attainment of all children”. It should be no surprise that the funding announced targets key priority areas, including closing the attainment gap between disadvantaged pupils and their peers.

Spending on the up
According to the departmental statement, this settlement and the capital settlement announced on 10 October 2007 will mean that, by 2011, total funding per pupil will have increased nationally to £6,600. Education spending is projected to rise as a proportion of GDP from 4.7 per cent in 1996/7 to 5.6 per cent by 2010/11. Most importantly, schools will have three-year budgets, enabling them to plan and to use their budgets more efficiently and strategically.

This latest statement continues from funding announcements on 25 June 2007. The key features of this were: a continuation of the spend plus methodology for DSG distribution, coupled with a fundamental formula review, to start in the New Year; a Minimum Funding Guarantee (MFG) dependent on average cost pressures, but with efficiency taken into account; further measures to broaden the membership of schools forums, particularly from early years and 14-19 stakeholders; a staged approach to the reform of early years funding; and additional funding for diplomas to be provided through a specific formula grant, with local discretion on how this funding is used to pay for provision.

What to expect
So what can we expect for the next three years? Highlights of the funding settlement 2008/11 include: £330/£535/£912 million earmarked for each year over the next three years to further personalise learning. This includes funding for the DCSF’s key priorities: the personalisation of teaching and learning, support for all pupils to make good progress, the extension of the early years offer to parents, and extended children’s services provided from schools. It also takes account of the additional costs of the expansion of the Academies programme - to allow for a further 50 Academies to be opened in each of the next three years, bringing the total to 230 Academies open by September 2010.

£138 million in 2009/10 and £315 million in 2010/11 to help improve the rate at which children progress, ensuring all children can meet their potential, and those who are behind expectations, or are falling behind, get back on track. This additional funding is to support universal roll out of a personalised offer to all pupils - including those with special educational needs - and will be distributed on the basis of numbers of five to 15 year olds. In taking decisions on allocations, local authorities and their schools forums are asked to consider: ensuring all children are making good progress; early intervention to prevent children from falling behind, especially those with special educational needs; targeted support for specific groups including those ethnic minorities at particular risk of poor outcomes, white working class children, children in care; and ensuring that the school workforce has the skills and confidence to address the needs of children from these groups.

£18/£47/£79 million earmarked for each year over the next three years to get those falling behind in basic literacy and numeracy back on track and up to standard through the national roll out of Every Child a Reader and Every Child Counts, with further funding being announced shortly for the Every Child a Writer programme.

Narrowing the attainment gap for pupils from disadvantaged backgrounds is one of the strategic objectives of the government. The most significant attainment gap is between deprived and more affluent pupils - including those in generally affluent authorities. There will be the targeting of funding at disadvantaged pupils and areas, with an additional £40 million funding a year for schools in pockets of deprivation in more affluent local authorities.

Total revenue schools funding will be £38 billion in 2008/09; £39.8 billion in 2009/10; and £41.9 billion in 2010/11, an average year-on-year increase of 2 per cent in real terms. For authorities experiencing rapid growth in pupil numbers, or a significant influx of children with English as an additional language, there will be an exceptional circumstances grant, paid out every autumn.

This means that overall average per pupil funding, including capital and ICT spending, will reach £6,600 - doubling in real terms since 1997. Education funding is projected to rise as a proportion of Gross Domestic Product (GDP) from 4.7 per cent in 1996/7 to 5.6 per cent by 2010/11.

Local authorities will see average per pupil revenue funding increases of 4.6 per cent in 2008/09; 3.7 per cent in 2009/10; and 4.3 per cent in 2010/11. The overall level of schools’ funding will increase by 4.3 per cent in 2008/09, 4.7 per cent in 2009/10 and 5.3 per cent in 2010/11.

For those in FE we are told that the Learning and Skills Council plans to announce increases in the funding rates for school sixth forms as well as the details of its new funding rules to be used for school sixth forms and other 16-18 provision. Sixth form funding will therefore no longer be taken into account when local authorities apply the MFG to schools with sixth forms. In December allocations will be announced of the specific formula grant to support the introduction of Diplomas from September 2008. That will build upon the £110 million already allocated through DSG in 2007/08 to support practical learning options.

There is, however, a warning about ensuring ‘best value’ from this increased funding: “The Department is working with our external partners, including representatives of headteachers and governors to develop support mechanisms for schools to help them make the best use of their resources to improve outcomes for pupils. The aim will be to provide schools with access to a range of support that is tailored to their individual circumstances, exemplifies good practice and provides opportunities for peer review and support. We will announce further details later in the year.”

ICT Funding
And what about ICT funding from 2008 to 2011? The new Harnessing Technology Grant, allocated through the Standards Fund, replaces the previously available separate capital grants for ICT for 2007 to 2008: 121 national digital infrastructure grants for schools; and 122 e-learning credits (eLCs). Remember that eLCs will end in August 2008. Schools and local authorities are also able to use Devolved Formula Capital and the Schools Development Grant to fund ICT priorities.

The funding will be distributed to schools via local authorities, through the Standards Fund. However, local authorities are expected to retain 25 per cent of their allocation centrally to ensure that all schools receive the benefits of aggregated purchasing, including the provision of broadband through regional broadband consortia or their approved suppliers. Allocations by local authority can be found on www.teachernet.gov.uk

Decisions on how schools and local authorities spend this grant should be based on local and school-level needs and priorities. Depending on local and school priorities and stage of development, technology investment may include upgrading connectivity, the implementation of learning platforms and investment in a range of technologies to support classroom-based learning, for example, interactive whiteboards and related tools, and other technologies like data loggers.

Jim Knight said: “We want maximum resources targeted at teaching and learning. That’s why we are giving schools the financial stability to plan ahead with confidence, with the first-ever three year funding settlement. We are also supporting schools to run their finances even more effectively, so every pupil gets the opportunities they deserve and money can be freed up and reinvested in the education system.”

For more information
For easy access to a whole range of educational suppliers and the resources they can offer you, see www.besa.org.uk

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