Decision details

Consideration was given to a report of the Director of Finance which requested Cabinet to consider how the funding for Schools and Academies should be distributed in 2020/21, following the Government announcement in October 2019 regarding School Funding for 2020/21.

The report provided a breakdown of the Dedicated Schools Grant (DSG) for 2020/21 and provided information about the National Funding Formula (NFF) for the Schools and High Needs Blocks for Oldham. It also presented a recommended approach for the distribution of the Schools Funding Block of the DSG to Schools and Academies for 2020/21.

A preferred option (Model B) was presented, to move to the 2020/21 NFF cash values in full, except for the Area Cost adjustment where it was proposed that the factor applied in Oldhamwais reduced from 1.00535 to 1.00000. It was also proposed that there was a 0.5% movement of

funding from the Schools Block to the High Needs Block, in order to ensure that the DSG (which is currently in a deficit position) could be managed, so that there was a balanced position over a three-year timeframe (in accordance with the requirements of the Recovery Plan submitted to

the Department for Education (DfE)).

The report highlighted that the continued agreement of the Schools Forum to the proposed 0.5% movement of funds between the Schools and High Needs Blocks was essential. At its meeting of 27 November 2019, the Schools Forum voted to support the 0.5% transfer between blocks, in recognition of the challenging financial position in relation to the High Needs Block and to show a positive movement towards delivering a DSG Recovery Plan.

Options/Alternatives considered:

·         Option 1 – Adopt Model A;

·         Option 2 – Adopt Model B

RESOLVED – That Model B outlined in the report be approved, which was a move to the 2020/21 NFF cash values in full except for the Area Cost Adjustment factor which was reduced to 1.00000, together with a 0.5% transfer of DSG funding between the Schools and the High Needs

Funding Blocks.