Item 7
Newcastle Schools Forum
19th January 2016
Growth Fund 2016/17
Report by: Deb Tyler, School Services Manager
1 Recommendation
1.1 That the Schools Forum approves a Growth Fund of £240,000 for the 2016/17 financial year, representing an increase of £80,000 in order to provide for additional school places to fulfil basic need.
2 Background
2.1 School revenue funding guidance (Annex 4 of the operational guide) from the Education Funding agency (EFA) identifies circumstances in which local authorities may choose to top slice the DSG to provide a growth fund.
2.2 Increasing numbers of local authorities are providing a growth fund within their school funding arrangements, reflecting the significant increase in pupil numbers in many areas. The value of the funds varies significantly from £50k (North East Lincolnshire) to £6m (Kent), with 52 authorities having a growth fund of £1m or more.
2.3 Following a period of declining school rolls and significant levels of surplus places, the number of primary age pupils in Newcastle has grown significantly in recent years. This is a result of an increased birth rate, coupled with inward migration and the development of new housing, which has led to high demand for primary school places in some parts of the city:
· Pupil numbers are continuing to rise in the primary sector
· There have been sustained year on year increases - there are 22% more pupils in reception than in Y6.
· The pressure on primary school places at reception is intense, with very few, if any, places available in some areas of the city, despite the creation of additional places.
· Pupil numbers are projected to increase further in coming years.
2.4 Having been fairly consistent for a number of years, increasing numbers will start to impact on the secondary sector at Y5 (in middle schools) from 2016 and in Y7 from 2017.
2.5 Almost all Newcastle primary and secondary schools are now admission authorities. This means that the governing body determines the number of places in the school and how to allocate them, not the local authority.
2.6 The statutory Admissions Code 2012 introduced a strong presumption in favour of an increase to a school’s Published Admission Number (PAN) if a school wishes to increase their intake. Own admission authorities are not required to consult on their PAN where they propose either to increase it or keep it the same, only if they propose a decrease. Admission authorities may also admit above their PAN in-year.
2.7 School organisation regulations have given increased autonomy to governing bodies to expand/amend provision, year groups served etc. However, while many schools can increase their own PAN, they should only do so where they have suitable space identified to accommodate the increase in pupil numbers or the capital funding is in place to enable this.
2.8 The local authority (LA) is required to secure sufficient schools to provide primary and secondary education. It is also required to ensure that its education functions are exercised with a view to promoting high standards, ensuring fair access to opportunity for education and learning, and promoting the fulfilment of learning potential.
2.9 To achieve sufficient, appropriate and high quality educational places, LAs need to work collaboratively with schools.
2.10 LAs may top slice the DSG in order to create a Growth Fund to support schools which are required to provide extra places in order to meet basic need within the authority, including pre-opening and reorganisation costs.
3 Growth fund rationale and criteria
3.1 In January 2015, the Schools Forum:
· Agreed criteria for allocating growth funding as a lump sum of £40,000 (pro rata per form of entry);
· Agreed to top slice DSG in 2015/16 to provide a growth fund for the amount specified, given the preferred model;
· Agreed an indicative growth fund for 2016/17, subject to agreement of specific amount through annual review of central expenditure.
3.2 The Newcastle Growth Fund is for first, primary and middle schools, as these are more likely to find the funding of additional classes prohibitive to expansion.
3.3 Growth funding is provided for the first two years that a school is expanding (or one year if a bulge class).
3.4 Growth funding applies where a school/academy:
· has increased its PAN, at the request of the authority, to provide an extra half form of entry or greater to meet basic need in the area as an on-going commitment;
· has agreed with the authority to provide a number of places above PAN as a bulge class as a consequence of school reorganisation or to meet short term additional needs.
3.5 Growth funding does not apply where a school/academy:
· Increases its PAN by choice but has not agreed it with the local authority as part of the process to meet basic need in the area.
· Admits over PAN by choice (not to meet agreed basic need).
· Where pupils are admitted above a school’s PAN as a consequence of appeal or error in the school admissions process.
3.6 The fund will not be applied retrospectively and will only apply to increases in class size agreed for the 2015/16 academic year and beyond.
3.7 This fund does not cover the establishment of a new school. In that case, revenue funding arrangements would require a separate proposal and methodology.
4 Growth Fund allocations
4.1 Five first/primary schools agreed to increase their PAN for September 2015, at the request of the local authority, creating an additional an additional 105 reception places (3.5 FE).
4.2 This resulted in an allocation of £160,000 from the Growth Fund in 2015/16.
4.3 In 2016/17, the amount of the proposed growth fund is up to £240,000. This includes:
· £160,000 to meet the year 2 allocations to the schools that expanded in September 2015;
· Up to £80,000 to fund new required growth (2 form entry) in September 2016.
Contact officerDeb Tyler, School Services Manager
Background papers
Growth Fund – funding additional school places to meet basic need, Schools Forum January 2015
DfE/EFA guidance
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