Agenda item

Louise Keith/Joshua Amahwe to report.

Recommendation(s):- (1) To note the latest DSG funding for schools for the 2024/25 financial year.

(2) To note the financial positions of Rotherham’s maintained schools and the identified financial risks against the schools DSG budgets for the year.

(3) To note the announcements of the Teachers Pay Award alongside the Core Schools Budget Grant allocation.

(4) To note the delay to the publication of the indicative schools and high needs national funding formula (NFF) allocations for 2025-26 due to the timing of the general election.

Consideration was given to a report presented by Joshua Amahwe, Head of Finance (CYPS) which provided an update on the school’s budget for 2024/25 and outlined the main funding changes announced by the DfE since the last Schools Forum in June 2024. 

The latest confirmed DSG funding allocation for Rotherham for 2024/25 was £109.7m which included a total of £30.4m in Schools Block funding. 

The latest allocation included a change of £363k on the High Needs Block.  All other blocks remained unchanged from the last position reported to Schools Forum in June 2024.

The funding allocated to the Local Authority and delegated to maintained schools was 30.45m.  The de-delegated budgets for Schools in Financial Difficulty (SIFD) and School Improvement and Trade Union activities were showing a balanced position for 2024-25. 

The Local Authority was committed to supporting two schools using the SIFD funding for 2024/25 and it was likely that additional commitments would need to be made as schools continued to face rising costs alongside a drop in pupil numbers. 

The latest confirmed allocation of 1.57m for the central block remained unchanged from the March 2024 allocation.

A cost pressure of 1.5m was forecasted for the High Needs block. There was a small increase in the deficit compared with the position in the Safety Valve agreement due to inflationary pressures, increases in EHCP pupils in mainstream settings and specialist provision and continued placements in out of authority independent settings.  Work was continuing through the SEND Sufficiency programme to create more local places and provision for pupils with complex needs with the aim of reducing out of authority specialist placements.  

Forum Members were assured that although the position on the High Needs Block was slightly adrift from the planned position it was not an immediate cause for concern when compared with the reported position of other Local Authorities.

A balanced budget position was currently forecasted across the Early Years Block, with the brought forward balance at the start of 2024/25 being utilised to fund the Inclusion Support Grant payment to providers.  At this stage participation numbers are expected to be in line with budget projections, however Autumn term data (when available) would provide a clearer indication of the overall position.   

The Delegated Schools Budget total net balances for maintained settings was set out at 6.1 of the report.  When compared to the original budget the July position indicated a net improvement of £536k.  

The July budget monitoring showed a decrease in net surplus of £604k compared to the 2023/24 outturn position and was reflective of the increased financial pressures faced by schools. 

The latest position also indicated that five schools were now reporting a deficit balance compared to the original three that had licensed deficits from May’s budget submissions.  One school had returned to a balanced position. 

Since the original budget submission, a further three schools were now projecting deficits in their July budget statements. 

It was noted that the Local Authority would continue to monitor those deficits and work closely with schools to support them with recovery plans to manage their overall financial position.   

Forum Members were advised that the Department for Education (DfE) had announced that teachers would receive a 5.5% pay increase from September 2024. 

The DfE are providing in the region of £1.1 billion in additional funding nationally to support schools (including mainstream, special and alternative provision) with overall costs. 

Additional funding would be provided through a new Core Schools Budget Grant which was based on a combination of per-pupil allocation, a lump sum and weighting for disadvantaged pupils. 

Schools would receive one payment to cover the 2024-25 financial year and it was expected that that would be paid by the ESFA in November 2024 for local authorities and December 2024 for academies.  It was noted that schools were able to check their indicative allocations utilising a calculating tool provided on the DfE website.   

Forum Members were informed that due to the timing of the general election the ESFA were unable to announce the school’s budget or publish the indicative schools and high needs national funding formula allocations for 2025-26 and as a result the annual funding cycle would differ from previous years and new timelines would be confirmed in due course. 

Agreed:-  (1) That that latest DSG funding for schools for the 2024/25

financial year be noted.

(2) That the financial position of Rotherham’s maintained schools and the

identified financial risks against the schools DSG budgets for the year be

noted. 

(3) That the announcements of the Teachers Pay Award alongside the

Core School Budget Grant allocation be noted.

(4) That the delay to the publication of the indicative schools and high

needs national funding formula (NFF) allocations for 2025-26 due to the

timing of the general election be noted.