NORTHUMBERLAND COUNTY COUNCILcommitteedocs.northumberland.gov.uk/MeetingDocs/25813_M... · 2017-03-07 · NORTHUMBERLAND COUNTY COUNCIL Report of Audit Committee Working Group Education

NORTHUMBERLAND COUNTY COUNCIL

Report of Audit Committee Working Group

Education and skills

Andrew Johnson – Director of Education and Skills

10.11.2016 A report commissioned by the working party of the Audit Committee established to analyse the funding of small rural schools.

CONTENTS

PAGE NO.

1. Background to this report 3

2. Findings 5

3. Developing a vision for the Local Authority 7 role in Education and Skills across Northumberland.

4. Schools in Northumberland - where are we now? 7

● Educational outcomes ● Financial position

5. The national policy position – 15

● The Education and Adoption act ● Education excellence everywhere white paper ● Land and Academies issues ● Special Educational Needs and Disability ● Setting up new schools ● Employment of teachers ● Schools finance

6. Implications for small rural schools 22

Report of the Audit Committee Working Group Page 2

1. Background

1.1 This report is the outcome of meetings of the Audit Committee Working Group established to provide an evidence-based position statement and a range of options available for schools, and for the council, in relation to national policy changes concerning the funding of schools and Local Authority Education teams. Membership: The membership of the Group is listed below: Councillor P.A.M. Dale (Chair)

NCC Audit Committee Chair

Councillor A.Wallace NCC Audit Committee Councillor J.Woodman NCC Audit Committee Councillor B.Gallacher NCC Chair of Family and Children’s

Services Scrutiny Committee Councillor E. Burt NCC Vice-Chair of Family and

Children’s Services Scrutiny Committee

Mr Ben Haywood-Smith Independent Member Audit Committee Ms Jo Warner C of E representative Mr Joe Hughes

RC representative

Mr. Richard Woolhouse Teacher Union representative Mr. Graham Wilkins Schools’ Forum Terms of Reference: The following terms of reference were defined by the Group:

(1) A time limited Group which will report its findings to Cabinet through the Audit Committee and the Family and Children’s Services Overview and Scrutiny Committee;

(2) To consider and develop a response, for Council approval, in relation to the Government’s consultation on the National Funding Formula Reform;

(3) To provide School Governors with evidence to enable them to develop a long-term, sustainable strategy for their school;

(4) To enable School Governors to build on best practice

(5) To examine any implications of government legislation on : ● NCC buildings and land assets, including sports facilities,

playing fields and any residential properties;


● Transport, with special reference to Special Education Needs; ● Population trends and sparcity issues for each school

partnership

(6) To consider options for providing services to rural schools

(7) To consider key risks to Northumberland County Council

1.2 A wide range of information was presented to the working group during the course of the three formal meetings and a wide range of background information was also sign-posted to members (see appendices).


2. Findings of the Audit Committee Working Group

It is suggested that after the publication of the national funding formula and the Education Bill the audit committee review the following actions. Some of these actions have already been taken; others are on hold until central government provide more clarity.

1. The local authority will hold meetings with the most financially vulnerable schools in Northumberland and begin a dialogue with them about their financial plans for the future; this should include an analysis of the current position and an action plan for the future. Owing to the urgency of the issue, this process has already commenced.

2. A conference should be organised for vulnerable school leaders to examine the challenges they face and share good practice and action plans in the light of the new national funding formula which removes the protection given by the County Council.

3. The Local authority should work with the schools forum to establish a new formula that will enable the High Needs funding shortfall to be addressed.

4. The Authority should investigate the possibility of establishing a new approach to offer services to schools to ensure that children continue to benefit from the expertise of the best talent in local authority teams.

5. The Local authority should develop a range of local sponsors or MATs. Government will support new sponsors to be established and existing sponsors to grow, targeting funding where there are too few sponsors and funding access to high quality information, advice and training for sponsors.

6. The Local authority should ensure that it has sufficient capacity to fulfil statutory functions and maintain other services as traded services.

7. There should be a thorough review of revenue streams as part of a wider review of the finances of Education and Skills to identify any potential savings.

8. Officers should investigate the development of a shared services approach with other local authorities.

9. The authority should develop work with existing Multi Academy Trusts (MATs), to expand their reach significantly across Northumberland and assist in school improvement.

10. The authority should maintain the Northumberland Adult Learning Services (NALS) and employability Service to provide good training opportunities to students aged 16 and over.


RECOMMENDATION TO CABINET: That the Cabinet consider the report of the Audit Committee Working Group and request officers to take the appropriate action to address the findings.

3. Developing a vision for the Local Authority role in Education and Skills across Northumberland 3.1 The work of the Education and Skills team lies at the heart of the Local Authorities role in extending opportunity and delivering social justice. “Our goal is to provide a world-class education system that allows every child and young person to reach his or her potential, regardless of background.” 3.2 Education is the best investment that we can make in the future prosperity of our county. At a time of reducing national schools funding we have been able to a certain extent protect funding, especially for small rural schools. 3.3 At the same time we have led an ambitious programme of school improvement and made significant investment in school buildings and infra-structure. 3.4 We have three over-arching objectives to meet our vision as described above-

● All children are protected from harm and vulnerable children are supported to succeed with opportunities as good as those for any other child.

● Educational excellence in all schools; every child and young person can access high-quality provision , achieving to the best of his or her ability regardless of location, prior attainment and background

● Prepared for adult life ; all 19 year-olds complete school or training with the skills and character to contribute to Northumberland’s society and economy.

4. Schools in Northumberland - where are we now? Educational Outcomes and Aspirations 4.1 Every child deserves to grow up free from harm and in a stable and nurturing home environment, but that isn’t the reality yet for some children. We are determined to work with our partners and colleagues from the Children’s Social care team to make this a priority. 4.2 We will work to transform the life chances of young people who for too long have been written off, by insisting that we have the same high expectations for young people in the care system as out of it. 4.3 Every child deserves to get the best education possible. We want to see educational excellence in every school in the county. We are committed to ensuring all children and young people have access to high quality places.


4.4 We wish to develop and support the education workforce in schools and other providers from early years to post-16. We hope to do this by attracting enough talented people to teach where they are needed most, focussing on challenging areas. We are strengthening our links with teaching schools and universities. 4.5 The Director of Education and Skill’s annual report (see appendices) sets out the outcomes of pupils across Northumberland. Our key challenges are to increase the proportion of good or better secondary schools and diminish the differences in academic outcomes between the disadvantaged and non-disadvantaged pupils. Between 2014 and 2016 there have been some very promising upward trends in these areas. 4.6 There are 179 schools in Northumberland. Eighteen are academies. Of the academies:

● 6 are first/primary ● 5 are middle ● 5 are high/secondary ● 2 all age ● 0 are special

4.7 We know that Ponteland Middle School, Haydon Bridge High School, Adderlane First School, Ashington High School, Bedlington High School, Queen Elizabeth High School and Queen Elizabeth Middle School will all become academies by the end of 2016. The Three Rivers Trust in Morpeth is actively seeking new academy partners. 4.8 Shaftoe Trust Primary and Whitfield Primary Schools will also either close or forced to become academies. Cramlington Learning Village, one of our largest academies is in Special Measures. Northumberland Church of England Academy, Blyth and Berwick academies are all Requires Improvement schools. Financial position 4.9 The council has set spending reduction targets across all services. The government stated in the Autumn 2015 spending review that the main grant to local government will be phased out and replaced by other forms of income including council tax and business rates. The spending review also reaffirmed the government’s intention to end the role of local authorities in running schools as a result of schools converting to become academies. In 2015-16 the national core school budget – the dedicated schools grant (DSG) was protected in real cash terms. The pupil premium funding for disadvantaged pupils was also protected. A national funding formula consultation took place in 2016, the outcomes of the consultation are still to be confirmed. The position in 2016-17 is likely to remain the same based upon previous funding. The consultation on a national funding formula will impact upon the 2017-18 values.


4.10 The DSG is distributed to local authorities in three spending blocks, a schools block, a high needs block and an early years block. A consultation on early years funding has also been carried out. To protect schools from significant reductions the government will continue with a minimum funding guarantee that ensures that Local authorities must allocate funding in a way that sees no school see more than a 1.5% budget reduction. The schools block is allocated to schools as a lump sum and an amount per pupil. The local schools forum works with each authority to determine the cash amounts. The high needs block supports provision for pupils with SEND and those that need alternative provision. The early years block comprised funding for the 15 hour entitlement for three and four year olds; participation funding for two year olds from disadvantaged backgrounds and the early years pupil premium 4.11 In addition Local Authorities receive the educational support grant to ensure that they carry out their statutory duties. The government have reduced this grant year on year and it is planned to phase it out altogether by 2020. 4.12 Some headline values 2015-16 Income Total DSG (including academies) £220m Total DSG (excluding academies who are funded directly) £171m Carry forward from 2014-15 £2.5m Expenditure Schools Block £133m Early Years Block (schools and voluntary sector) £10m High Needs (SEND) £16m Historic pensions commitment £0.55m Prudential borrowing for Atkinson House and Priory schools £0.75m Fees to Longridge towers and Ridley Hall £0.28m LA services staffing (Early years, Equalities, EOTAS, LIST, LAC, Sensory) £7.5m LA services no staff (SEN transport, Forum, Admissions) £1.3m De-delegated budgets (behaviour support, unions, EAL, FSM eligibility) £0.48m Recharges (HR, employee services, licenses) £0.64m 4.13 Breakdown of some headline 2015-16 expenditure figures Schools Block First and Primary schools £65m Middle schools £26m High schools £42m Union supply cover £0.85m Behaviour support service £0.33m EAL support £0.04m Free school meals admin £0.02m Longridge towers £0.18m Copyright licenses £0.13m


Admissions and supply of places £0.20m SEND home –school transport £1.1m High Needs Block Special schools £7.8m PRU £0.36m Sensory support £0.91m Education other than at school (EOTAS) £1.1m Locality inclusion support teams (LIST) North £0.66m LIST West £0.71m LIST Central £0.85m LIST SE £0.77m Education support for looked after children (ESLAC) £0.37m Equalities £0.32m Pre-school special education £0.39m Fees to independent special schools £3.2m High needs top up funding for individual pupils £12.9m Early Years Child care partnership £0.09m Early Years team £0.71m Funding 3&4 year old childcare in schools £3.98m Funding 3&4 year olds £4.35m Funding 2 year olds £2.33m 4.14 In addition to the DSG the Education funding agency (EFA) funded school sixth forms to the sum of £10.17m 4.15 Funding allocate to individual schools and not spent is kept in reserve. The reserve balance at the end of 2014-15 was £4.23m in First/Primary schools, £0.98m in Middle schools and £1.4m in High schools. 4.16 The council element of the SEND transport budget overspent by £0.38m. The main reason for this was the increase in expenditure in relation to post-16 transport costs. 4.17 The adult learning service (NALS) carried forward £0.55m of grant income to fund work in 2015-16. 4.18 The Youth Service overspent by £0.18m 4.19 There are a number of significant capital projects that draw down funding from a variety of external grants and council funding, (see appendix for details). This funding is ring-fenced to capital projects.


Funding 2016-17 4.20 The funding position for 2016-17 has been difficult to manage due to the national uncertainty behind the introduction of the national funding formula. The authority is expecting a steady state agreement based upon the previous year.

Table 1: Provisional Funding Streams 2016/17 Dedicated Schools Grant

Original £m

Adjusted £m

EFA £m

Revised £m

Budgeted Spend £m

Difference £m

Schools Block

176.681 0.555 177.236 177.242 0.06

Early Years Block

9.021 9.021 9.021 0.00

High Needs Block

30.615 -0.555 -2.666 27.394 28.133 0.739

NQT Induction

0.056 0.056 0.056 0.00

Early Years Pupil

Premium

0.219 0.219 0.219 0.00

2 year old funding

2.331 2.331 2.331 0.00

Total 218.923 0 -2.666 216.257 217.002 0.744

Education Services

Grant (will be reduced

annually and

withdrawn by 2020.)

3.231 3.231 3.231 0.00

4.21 The Early Years allocation is provisional, since the funding for 2,3 and 4 year olds is finalised during the year based on updated census data for January 2016 ( for Summer term 2016) and January 2017 (for Autumn 2015 and Spring 2017).


4..22 As members will be aware the oversight of the DSG falls between the LA and the Schools Forum. Below is reminder of the sections relating to expenditure in the DfE guidance on Schools Forum powers and responsibilities:

Function Local Authority Schools Forum 1 Formula change (including

redistributions Proposes and decides Must be consulted

2 Contracts Proposes Gives a view 3 Financial issues relating to

arrangements for: ● Pupils with SEN

● Use of PRU’s and EOTAS ● Early Years provision

● Administration of central government grants

Consults annually Gives a view and informs governing

bodies of all consultations carried out in lines 1,2 and 3

4 Minimum Funding Guarantee Proposes any exclusions from MFG for application

to DfE

Gives a view

5 De-delegation for mainstream schools Proposes Gives a view 6 & 7 Central spend on specified services Proposes Decides for each line

8 Carry forward deficit on central expenditure to next year to be funded

from schools budget

Proposes Decides

9 Scheme for Financing schools Proposes and consults GB and Head of every school.

Approves

4.23 The LA has full responsibility for deciding on how the non-schools budget is spent. This is partly funded from Education Services Grant and partly from Council resources (a mix of government grant and Council Tax income). 4.24 The Section 251 return provides clear information on the key headings of expenditure that are funded from the DSG. The Schools and Early Years Finance Regulations provide a more detailed list of functions. Not all of these are relevant to Northumberland; they depend on local decisions 4.25 The following headings come within the Schools Block:

● Individual Schools Budgets (delegated budgets) ● Contingencies ● Behaviour support services ● Support to underperforming ethnic groups and bilingual learners ● Free school meal eligibility checks ● Insurance ● Museum and library service ● Licenses/subscriptions ● Staff costs – supply cover (jury service, reserve forces members etc.) ● Staff costs – supply cover for trade union facility time ● Contribution to combined budgets (central expenditure agreed by Forum) ● School admissions


● Servicing of schools forum ● Termination of employment costs where there are savings to the schools

budget and costs approved by the Schools Forum ● Falling Rolls Fund ● Pupil Growth Fund and Infant Class Size funding ● Capital Expenditure from Revenue (CERA) ● Prudential Borrowing costs where loans previously taken out ● Fees to Independent Schools for pupils without SEN ● Equal pay/back pay – centrally retained provision for meeting the cost of

settlements ● SEN transport – only where expenditure is offset by savings to the schools

budget (e.g. pupils returning to local area from Independent Special Schools) and approved by Schools Forum

● Exceptions agreed by the Secretary of State ● Copyright licences negotiated nationally for all publicly funded schools ● Other specific grants whether devolved to schools or not (not Pupil

premium) 4.26 The following headings are classified as Early Years expenditure:

● Free entitlement for 2,3 and 4 year olds ● Central expenditure on children under 5

4.27 The following headings are High Needs Block items:

● Place-led funding for specialist places in special units/resource bases, special schools and PRU/alternative provision

● Top up funding for specialist places as above ● Funding for pupils at non-maintained special schools (top ups) and

independent schools (full costs) ● Additional high needs targeted funding for mainstream schools e.g. whose

notional SEN budget is insufficient to meet the additional support costs of pupils with SEN

● SEN support services provided directly or commissioned by the LA ● Hospital education services ● Other alternative provision services provided directly or commissioned by

the LA ● Support for inclusion, e.g. central expenditure to support collaboration

between schools for inclusion of children with SEN in mainstream activities and devolved expenditure for outreach services

● Special schools and PRUs in financial difficulty ● PFI/BSF costs at special schools and AP/PRUs where funded outside

Place Plus funding arrangements ● Direct payments to parents of children with an EHCP including transport ● Carbon reduction commitment purchased allowance for PRUs


4.28 The Education Services Grant is provided to local authorities in relation to LA maintained schools, and to academies for the additional responsibilities that transfer to them from the LA. It is a non-ring fenced grant, meaning that the recipients can decide how it is spent; there is no obligation to prove that expenditure has been incurred precisely on the functions for which it is given. This Grant will be reduced annually and withdrawn by 2020. 4.29 The rates of the grant for 2016/17 are:

● £77 per mainstream pupil ● £288.75 per PRU place ● £327.25 per special school place ● £18 per pupil for all state funded schools

4.30 The functions for which Education Services is provided fall into two categories: those performed on behalf of maintained schools (i.e. excluding academies and free schools) and those performed on behalf of all publicly funded schools. The overarching legislation is found in sections 13,13A, and 14 of the Education Act 1996, which require local authorities to:

● Ensure that efficient primary, secondary and further education is available to meet the needs of their population

● Ensure that their education functions are exercised with a view to promoting high standards ensuring fair access to opportunity for education and learning, and promote the fulfilment of learning potential

● Secure that sufficient schools for providing primary and secondary education are available for their area.

4.31 The LA responsibilities covered by the Education Services Grant and SLA’s are set out in the headings below. The headings covered are:

● School Improvement ● Statutory and regulatory duties. N.B headings such as finance,

information and HR are not to be confused with the support services funding already delegated to schools – the statutory and regulatory duties relate to functions performed for LA services.

● Education Welfare Service ● Central Pupil Support services – e.g. clothing grants, music services,

outdoor education etc. ● Asset Management ● Premature retirement/redundancy costs ● Therapies and other health-related services ● Monitoring national curriculum assessment

4.32 Services classified as education and community services which are not covered by the Education Services Grant, but funded from Council Tax and general government grants an SLA’s are:


● Education Psychology Service ● SEN administration, assessment, coordination and monitoring of SEN

provision – including identification and assessment of children with SEN and disability and the making, maintaining and reviewing of Education Health and Care Plans

● Independent advice and support services (parent partnership) guidance and information, and provision of mediation services/dispute resolution

● Home to school transport ( pre and post 16) for SEN and PRU provision according to local policy

● Home to school transport ( pre and post 16) for mainstream provision according to local policy

● Planning and managing the supply of school places ● Young people’s learning and development e.g. direct provision on

apprenticeships/entry to employment, NEETs work, education business links etc.

● Adult and community learning ● Pension costs relating to historic commitments/residual liability ● Joint use arrangements relating to education other than for school

premises ● Insurance relating to education other than for school premises ● Other specific grants whether devolved to school or not (not childcare)

5. The national policy position 5.1 A consultation on a national schools funding formula began in 2016 schools but has yet to be completed. Our schools forum (and by implication NCC) will draft a response. The principles established by central government at the outset of the consultation were that Dedicated Schools Grant funding (DSG) for mainstream schools and possibly Early Years will be removed from Local Authority control. By 2017/18, a national formula will be introduced and Authorities asked to run a potentially very difficult transition for two years before all schools are funded directly in 2020. 5.2 It is difficult to predict precisely what impact this will have on schools in Northumberland because the precise funding values have yet to be determined. However there are some obviously challenges – small rural schools may find it increasingly difficult to survive. The power of the Authority to skew the funding formula to help them may be removed or reduced. It is interesting that during the debate on the national funding formula a minister referred to the difficulties of funding ‘really small schools with say only 150 pupils’ ... he went on to say this would be taken into account. A working definition of a small school is one with less than 210 children. 5.3 It is therefore difficult to brief members of the audit committee and elected members on the implications of the changes until we discover the detailed outcomes of consultation, hopefully later this year.


However there are some challenges that are reasonably clear –

● Small schools will struggle to survive

● The authority’s power to manage and influence the use of the DSG will be curtailed or completely removed by 2020

● Many of the authority’s current school improvement services (non –statutory) will need to become wholly traded services if they are to be financially viable

● Our statutory duties will remain and centre around special educational needs, place planning, admissions, safeguarding, buildings maintenance and transport, but it unclear what level of funding we will receive.

5.4 In parallel to the funding consultation a new Education and Adoption act was passed in 2016. This makes it easier for government to force a failing school to become an academy without reference to a consultation process. 5.5 A White Paper (Educational Excellence Everywhere) was also published. If enacted into law it will mean that in the short term local authorities will continue to have responsibilities which include: employment of staff in community schools; ownership and asset management of school buildings etc. These responsibilities will shrink as each school in their area becomes an academy; when every school in their area has done so, Local Authority Education functions will fade away. 5.6 In the future local authority education duties will focus on three main areas:

● Ensuring every child has a school place including that there are sufficient school, special school and alternative provision (AP) places to meet local demand. Local authorities will also work with schools and parents in developing local school transport policies, giving schools the opportunity to provide these services where it makes sense locally, Local Authorities currently fund school transport from their own revenue.

● Ensuring the needs of vulnerable learners are met by identifying and making provision for children with SEND or with looked after status. Local authorities will also promote school attendance, tackle persistent absences and lead on safeguarding responsibilities for all children excluded or otherwise unable to attend mainstream school e.g. those educated at home.


● Act as champions for all parents and families by supporting them to navigate the system through a continued role in admissions, for example.

5.7 In light of the policy changes set out in the white paper the government intends to review the responsibilities of local authorities in relation to children, including the implications for the roles of the director of children's services and the lead member for children. 5.8 The government is considering extending legislation to extend the role and responsibilities of virtual school heads so that they can continue to support children who have left care under an adoption order. 5.9 The government will seek views on a number of changes to the school admissions system to make it simpler and clearer, including “requiring local authorities to coordinate in-year admissions and handle the administration of the independent admission appeals function”. 5.10 It was planned that from September 2017, school improvement funding would increasingly be routed through Teaching Schools. However it is unclear whether this will be delayed until after the national funding formula is established. 5.11The government will ensure all schools in all areas can access support, collaboration and best practice by ensuring full coverage of system leaders across the country with up to 300 more Teaching Schools and 800 more NLEs targeted where most needed. An innovation fund for RSCs to commission school improvement support from within the system for failing and coasting schools will be established. To retain the expertise in the system and ensure that children still benefit from the best talent in local authorities, the government expects some individuals working in local authority teams will leave to set up new trusts or join existing ones and become academy sponsors. 5.12 The government will work with Ofsted to ensure the inspection regime is fair, increasingly proportionate and focussed on underperformance. Outstanding schools are already exempt from routine inspection. To introduce an "improvement period" of 30 months, during this time schools won’t be inspected in order to allow leaders to put in train sustainable improvement. 5.13 Most schools will be expected to form or join multi-academy trusts (MATs): “Apart from in exceptional circumstances, the smallest schools will have to form or join a MAT.” Other successful, sustainable schools will still be able to: "continue as single academy trusts if they choose to do so.” However, recent changes by the Minister for Education means that schools will not now be forced to do so as was previously set out. 5.14 The government can direct schools to become academies in local authority areas which are underperforming or where the local authority no longer has


capacity to maintain its schools or where schools have not started the process of becoming an academy by 2020. 5.15 In order to speed up the process of and reduce the barriers to conversion to academy status for all schools the government will seek to agree a new Memorandum of Understanding with the Church of England and the Catholic Education Service which will include clear protocols for agreeing the requirements when Church schools become academies. 5.16 To ensure land issues do not get in the way of improving schools, "when a local authority's community schools convert to academy status, land held by the authority for those schools will transfer to the Secretary of State, who will then grant a lease to the academy trust." Where a school converts to academy status, the government will not take ownership of any land owned either by schools themselves or any charitable trust. However, the ability for maintained schools to convert to foundation status will be removed. 5.17 500 free schools and UTCs will be opened by 2020. The government hopes to see "a UTC within reach of every city." To ensure sufficient new schools can be established where they are needed the government will continue to work with local authorities and other public sector bodies to secure sites for new free schools and introduce new measures that will enable the Secretary of State to require the use of local authority land for new free schools. Mainstream schools will support AP providers to deliver a broad and balanced curriculum and high quality teaching by sharing subject specialists and facilities that smaller APs would otherwise find hard to access. Schools will be responsible for the budgets from which AP is funded. As they will also be responsible for commissioning and accountable for education outcomes, they will have stronger incentives to take preventative approaches and achieve value for money. 5.18 The government plans to replace the current Qualified Teacher Status with a stronger, more challenging accreditation based on a teacher’s effectiveness in the classroom, as judged by great schools. The government will establish a College of Teaching; this will be a professional body like those in other high status professions such as law and medicine. It will be a voluntary membership organisation, run by teachers, for teachers. 5.19 The government will continue to equip schools to embed a knowledge-based curriculum as the cornerstone of an excellent, academically rigorous education to age 16. The national curriculum will no longer be a decree, but a benchmark. 5.20 The government plans to establish a database of everyone involved in governance, they intend to legislate so that “unsuitable individuals” can be barred from being governors of maintained schools. The government will work with schools and MATs to develop a competency framework defining core skills and knowledge needed for governance in different contexts.


5.21 High performing schools will continue to submit applications to become academy trusts to their Regional Schools Commissioner (RSCs). Local authorities will have a new duty to facilitate the process of all maintained schools becoming academies In local authority areas which are underperforming or where the local authority no longer has capacity to maintain its schools the government will take new powers to ensure schools become academies faster. 5.22 To support the transition to this new model government will continue to provide financial support to schools applying to become an academy. They will also establish a multi-academy trust (MAT) Growth Fund to invest in the people and systems needed to enable effective groups of schools to join together, and to support existing MATs to expand. In addition, they will support primary schools in becoming academies, providing guidance and ‘how-to’ tools to help them fulfil the roles previously carried out by Authorities. Land issues and buildings 5.23 The majority of academies currently lease their land from local authorities, typically over a 125 year lease. To speed up the process of academy conversion and ensure that land issues do not get in the way, when a local authority’s community schools convert to academy status, land held by the authority for those schools will transfer to the Secretary of State, who will then grant a lease to the academy trust. Government will also “take steps to ensure that the wider education estate is safeguarded for future provision and that the existing school estate can be used more easily for new schools and expansions where applicable”. 5.24 Where a school converts to academy status, the government will not take ownership of any land owned either by schools or by charitable trusts. However, the ability for maintained schools to convert to foundation status will be removed. 5.25 To ensure sufficient new schools can be established where they are needed, the government will continue to work with local authorities and other public sector bodies to secure sites for new free schools and introduce measures that will enable the Secretary of State to require the use of local authority land for new free schools. DfE will also consider providing funding for schools that are part of housing developments to be built, in advance of contributions from developers being paid, to bridge the gap between places being required and funding being available. 5.26 The government is continuing the two phases of the £4.4 billion Priority School Building Programme (PSBP), rebuilding or refurbishing over 500 of the worst condition schools in the country by 2021. 5.27 As more schools become academies, responsibility for managing condition budgets will move from local authorities to academies. In the interim, local authorities will continue to manage capital allocations for maintained schools – when those maintained schools have become academies, this duty will gradually fall away.


5.28 Larger MATs already manage capital budgets, while smaller MATs and single academy trusts currently bid to the Education Funding Agency for capital funding from the condition improvement fund. The government will continue to operate a capital system that gives larger MATs autonomy over their capital funding, and provides extra support for smaller MATs and standalone academies with buildings in poor condition. 5.29 Given the scarcity of specialist provision in some areas and the importance of parental choice, the government will ensure that there are sufficient special school places available to match local need. The government is encouraging applications for special free schools and have 19 special free schools now open across the country another 10 will open in 2016 and beyond. 5.30 In addition the government will make available capital funding to support the expansion of existing provision, as well as the development of new schools to create new specialist places. At least £200 million will be available; government will say more about how this will be distributed later in 2016. Establishing new schools 5.31 Local Authorities cannot establish new schools. There will be 500 new schools by 2020 established by MATs or academy sponsors. These new free schools and University Technical Colleges (UTCs) will meet the need for more school places in areas of basic need. They are intended to offer greater choice, innovation and competition in areas where educational standards are currently lower than they should be or where parents and the local community want new or better schools. 5.32 Existing local schools can expand to spread their success; parent and community groups could provide a particular kind of school; or successful educationalists from elsewhere in the country could spread practice to new areas. 5.33 Some of these new free school places will be in areas of basic need, but not all. Some will be set up in areas of poor educational standards as ‘challenger’ schools, bringing new energy, capacity and choice into the country’s lowest-performing areas. New free schools will enable new providers to compete with existing providers on an equal basis. This will continue to encourage innovative models of education, which is especially important in the alternative provision and special educational needs sectors. 5.34 UTCs (University Technical Colleges) are a type of free school (academy). They enable businesses to take the lead in establishing and running schools, with significant input from universities. The government is committed to ensuring there is a UTC within reach of every city so that increasing numbers of young people can benefit from this type of technical education. It will strengthen the programme through reforms to help UTCs with pupil recruitment and improve their educational and financial viability, including: targeting future UTC locations in areas without such provision within reach; flexibilities in admission arrangements; and an expectation


that all UTCs should be part of strong partnerships with high performing secondary schools, such as MATs. Special educational needs (SEND) 5.35 The Authority will retain significant statutory responsibilities with regard to SEND. New statutory duties already give children, young people and their parents more protections and rights, and ensure that local authorities, schools, health and social care services work better together. ‘Local Offers’ have been published, setting out in one place information about the provision available across education, health and social care, and schools are required to publish information reports showing what they are doing for children and young people with SEND. 5.36 The government have also introduced more ‘streamlined’ needs assessment processes, coordinated across education, health and care; integrated Education, Health and Care (EHC) plans; and the right for young people and parents of children who have EHC plans to request a Personal Budget. 5.37 The government is closely monitoring the implementation of these reforms and have provided over £212 million since 2014 to support implementation. Ofsted and the Care Quality Commission will begin to inspect local area implementation from May 2016, focusing on how well the needs of children with SEND are identified and met, and how well local agencies (including health and social care) work together to do so. 5.38 Several specialist schools across Northumberland are actively considering becoming part of a MAT. Currently most are good or outstanding. We have recently developed a self-evaluation and strategy for SEND. Much of this will depends upon partnership working with Health Services and Social Care. 5.39 The Authority will retain duties in relation to Alternative Provision (AP), admissions and fair access to schools. Pupils who spend time in alternative provision do considerably less well than their peers academically. Very few achieve the qualifications that will help them succeed in adult life and they are considerably more likely to become NEET (not in education, employment, or training). AP is typically very expensive and there may be pupils in AP whose specific needs would be better addressed in a mainstream school. Schools must ensure pupils entering AP do so with an agreed plan for their educational success. Quality assurance is crucial and AP teachers must have the knowledge and skills expected in mainstream schools. Schools as commissioners of AP must ensure there are strong lines of accountability. The most challenging pupils must be placed with the strongest providers. Pupils leaving AP must find post-16 provision that helps them to continue their progress. We have been considering our approach to the PRU and AP for some time, it has a considerable drain on DSG schools funding. We are looking at developing the AP/PRU estate in Bedlington. 5.40 The government reforms suggest that mainstream school headteachers will commission expert provision for pupils with needs and behaviour that have become


unmanageable within a mainstream setting. So that mainstream headteachers can commission the right services, local authorities will retain a role in ensuring sufficiency of AP in their area. New, innovative and specialist provision will be developed through the free schools programme. 5.41 The government will reform the alternative provision (AP) system so that mainstream schools remain accountable for the education of pupils in AP and are responsible for commissioning high quality provision. AP will meet defined needs including significant behavioural problems; complex medical or mental health conditions; and extreme vulnerability due to personal and social issues. It is expected the AP provider to work with the mainstream school to put in place a tailored plan for each pupil to support them to achieve the high quality qualifications they need for adult life. 5.42 The government will change accountability arrangements so that a pupil’s mainstream school will retain accountability for their educational outcomes and will take a lead role in commissioning their provision, including when they have permanently excluded the pupil but the pupil has not subsequently enrolled at a different mainstream school. Mainstream schools will support AP providers to deliver a broad and balanced curriculum and high quality teaching by sharing subject specialists and facilities that smaller alternative providers would otherwise find hard to access. 5.43 Schools will be responsible for the budgets from which AP is funded. As they will also be responsible for commissioning and accountable for educational outcomes, they will have stronger incentives to take preventative approaches and to achieve value for money when identifying the best and most suitable alternative provision for any child that needs it.

Residual statutory duties including employment of staff

5.44 The government intend to legislate to change local authorities’ powers and duties. Instead of running schools or school improvement, local authorities will focus on delivering core functions, working as partners within the academy system and champion the needs of parents and the local community.

5.45 In the short term, local authorities will continue to have responsibilities which include: employment of staff in community schools; ownership and asset management of school buildings; and responsibilities relating to the governance, organisation and curriculum of maintained schools. Those responsibilities will shrink as each school in their area becomes an academy; when every school has done so, they will fall away entirely.

5.46 There will be a number of other responsibilities for which local authorities will retain responsibility, including admissions and oversight of testing arrangements at various Key Stages.


5.47 Local authorities are currently bound by a wide range of statutory duties covering education, childcare and children’s social care – with particular responsibility for ensuring the needs of vulnerable children and young people are met. They also take a lead on local inter-agency cooperation on education, health and social care, for example to support children with special educational needs or disability.

5.48 Local authorities will also work with schools and parents in developing local school transport policies, giving schools the opportunity to provide school transport services and take a lead in crisis management and emergency planning. Ensuring the needs of vulnerable pupils are met: including leading on safeguarding responsibilities for all children, including those in un-regulated settings, educated at home and children missing education, as well as children at risk of radicalisation; and supporting vulnerable children, – for example, acting as the ‘corporate parent’ for looked after children, using the statutory Virtual School Head role to work with schools and other agencies on promoting their educational achievement and progress, and deciding how to spend the Pupil Premium Plus.

5.49 The changes will complement local authorities’ wider responsibilities for local economic growth and prosperity. Just as a local authority already encourages employers to create more jobs in their area, or attracts businesses to fill empty retail units on their high streets, so too it can use its democratic authority to encourage top-performing MATs to set up new schools in their area, or encourage popular, high-performing schools to expand.

Schools Finance

5.50 The government will introduce new, fair national funding formulae for schools, and for allocating high needs funding to local authorities for special educational needs and alternative provision. It intends to improve the effectiveness of pupil premium spending by encouraging schools to adopt evidence-based strategies. This will impact on schools from 2018. Those schools that elect to become academies will be funded directly as happens now. The schools that choose not to become academies will be subject to a National Funding Formula that is not controlled by the local authority. The Schools’ Forum will cease to exist because local agreements will be impossible, e.g.: a school in London will have the same formula as a school in rural Northumberland (as reported BBC News 9 November 2016 ). Early indications from the Institute of Fiscal Studies indicate Northumberland’s 179 school would lose £10m annually. This is supported by the Association of School and College Leaders who state that a primary school with less than 210 pupils would no longer be financially viable. 5.51 Central government will support schools to improve their financial health and efficiency through tools, guidance and direct support such as training and better national frameworks for procurement and improve and maintain the school estate


(buildings and grounds) to ensure that those responsible for school buildings get a fair share of funding and have the right incentives to make effective use of the school estate. They will continue to rebuild and refurbish schools in the worst condition across the country.

5.52 The government will reform how it allocates and delivers funding so that it is ready for a system where every school is an academy, removing complexity and ensuring school leaders have control over their own budgets. Headteachers and governing boards will ensure that their schools are efficient and financially sustainable through proactive and robust financial planning.

5.53 The amount of money each school and local authority receives is largely based on data over a decade out of date. Because local authorities have been able to design their own funding formulae for schools, individual areas fund schools in very different ways responding to individual circumstances. Funding per pupil was £4551 in Northumberland, £4710 in Newcastle and £4535 in Sunderland in 2015-16.

5.54 The government intend, from 2019, to move to a system whereby individual schools’ budgets are set by this national formula – rather than by 152 locally devised formulae.

5.55 Disadvantaged pupils will continue attract more funding. The government has proposed four building blocks for this national formula –The first would be a basic per-pupil formula, weighted by age (reflecting that costs increase as pupils move from primary through secondary). The second is funding for additional pupil needs – whether pupils come from deprived backgrounds, if their prior attainment is low, and if they have English as an additional language. The third is a lump sum payment, with extra funding for small schools in sparsely populated areas which find it more difficult to reduce costs. Finally, funding would recognise that schools’ costs are affected by their geographical location, especially in and around London – so the formula would adjust funding in recognition of this.

5.56 In addition the government will introduce new national funding formulae for allocating high needs funding to local authorities for special educational needs and alternative provision.

5.57 To ensure a smooth transition, the government propose a two year period in which local authorities will continue to set a local formula – after that, they will shift to a single national formula determining each school’s funding. It is proposed to keep a minimum funding guarantee and to offer practical support to schools that need particular help.

6.0 Implications for small rural schools


6.1 In other counties some small rural schools receive no top-up funding to address the unique pressures they face, in Northumberland the Local Authority ensures they benefit from ‘sparsity funding’. Nationally it remains uncertain as precisely what national formula will be adopted but the government has promised to look at this area. 6.2 Alongside the existing statutory presumption against closure of rural schools, the government will go further, introducing a new ‘double lock’ so that when small rural schools convert to academy status both local and national government have to agree to a school closing before a decision can be made. 6.3 The government says that no small successful schools will be forced to join a national academy chain – however they believe that most small schools will choose to join multi-academy trusts made up of other local schools, though small sustainable schools will be able to convert alone if they wish. To support them there will be dedicated support from experts in the Department for Education to help primary schools through the process of conversion and a £10 million fund for small schools to secure expert support and advice. 6.4 The government has allocated £300 million that will be available to support schools to convert and, in particular, support sponsors to turn around failing schools. A further £300 million will support strong and effective multi-academy trusts to grow and improve. And, in recognition of the costs that local authorities and church dioceses face, funding will also be provided to them. 6.5 Whilst we need to wait for the government to publish its response to the first consultation, together with proposals for the second stage of the consultation, there are serious concerns that one impact of the funding reforms could be even more financial pressure being placed upon small rural schools which could result in a significant impact on the ability of schools to provide a good quality of educations, potentially forcing closure or merger and impacting upon local communities. Northumberland would be significantly affected by this particularly in our extensive rural areas with low population and falling rolls.

6.6 A national formula, which did have a very significant ‘small schools factor’ could never accurately reflect the differing characteristics of a local area. The government define a small school as one with less than 210 children on roll. Removing the power of local authorities to set a local formula removes the chance for any local measure to preserve small schools. Currently this is partially achieved by the use of the lump sum of funding small schools receive as part of the local funding arrangements and the way in which the authority funds support services for the benefit of all.

6.7 The first stage of the consultation proposed that the sparsity factor should be retained in the NFF. The government view is that this would enable local authorities to support small schools who could struggle to work in partnership with other schools due to geographical difficulties. However we have great concern about how the factor is determined and how much additional funding this would result in small


schools being allocated. Currently the sparsity factor is a relatively minor element of rural school funding and unless it was increased by a very significant amount it would have little or no impact on the under-lying challenges tiny rural schools face. The consultation refers to the distance that pupils would have to travel to their next nearest school, however, the factor does not measure the actual distance that pupils would have to travel but measures the distance ‘as the crow flies’.

6.8 In Northumberland we have 60 schools with fewer than 100 pupils. On average the lump sum forms 37% of their formula funding. For many it is a life-line to survival financially, if a NFF was to reduce it, then the consequences would risk the long term survival of schools as separate entities.

6.9 Under a new NFF the local authority would still be responsible for Home to School transport and therefore there are very real concerns that rural school closures could result in an increase in school transportation costs if pupils have to travel further afield. There are already very significant pressures on this budget with a significant over-spend predicted (see separate paper). 6.10 ‘Sparsity’ is a factor used to allocate additional revenue funding targeted at schools that have been identified by the sparsity factor as being eligible. Schools that are eligible for sparsity funding must meet two criteria: first, they are located in areas where pupils would have to travel a significant distance to an alternative should the school close, and second, they are small schools.

6.11 For the pupils for whom the school is their closest compatible school, the factor measures the distance (as the crow flies) to their second nearest compatible school and the mean distance for all pupils is then calculated. Selective schools and schools in Wales or Scotland are discounted when identifying the second nearest school. Since the pupil population changes each year, it is possible for a school to be eligible for sparsity funding in one year but not in the next.

A school may attract sparsity funding if it is:

● primary and has on average fewer than 21.4 pupils per year group and an average distance greater than or equal to 2 miles

● secondary and has on average fewer than 120 pupils per year group and an average distance greater than or equal to 3 miles

● middle and has on average fewer than 69.2 pupils per year group and an average distance greater than or equal to 2 miles

● all-through and has on average fewer than 62.5 pupils per year group and an average distance greater than or equal to 2 miles

● Pupil numbers include Years R to 11 only i.e. excluding nursery and 6th Form

pupils.


6.12 List of schools that received Sparsity Funding in Northumberland

School Name No on Roll Sparsity Funding

Allendale Primary School 112 3,280.37 Bellingham First School 61 5,588.79 Belsay First School 69 4,616.82 Branton Community 1st School 19 11,076.32 West Woodburn 1st School 24 10,084.11 Stamfordham First School 81 3,158.88 Netherton Northside 1st School 9 11,633.18 SEAHOUSES FIRST SCHOOL 78 5,102.80 Otterburn First School 37 8,504.67 Rothbury First School 105 242.99 Greenhaugh County First School 25 9,962.62 Slaley First School 45 7,532.71 Stannington 1st School 80 3,280.37 CAMBO FIRST SCHOOL 41 8,018.69 Kielder Community 1st School 15 10,721.96 Whitonstall First School 59 5,831.78 Swarland First School 64 6,520.25 Belford First School 70 4,495.33 Hipsburn First School 101 2,774.14 Chollerton C of E Aided First School 34 8,869.16 Felton CoE First School 51 7,532.71 Haydon Bridge Shaftoe Trust Voluntary Controlled Primary School 133 1,457.94 Henshaw Church of England Aided Primary School 42 8,747.66 Longhoughton C of E 1st School 99 2,976.64 Whittingham First School 51 7,431.46 Longhorsly St Helens First School 75 3,887.85 Greenhead C of E First School 36 9,355.14 Broomhaugh C of E First School 71 4,373.83 Ellingham C of E First School 56 7,330.22 Embleton Vincent Edwards C of E First School 22 10,772.59 Hugh Joicey C of E Aided First 58 5,953.27 Harbottle C of E 1st School 20 10,570.09 Whitley Chapel C of E First 19 10,691.59 Holy Island CE FIRST SCHOOL 5 12,240.65 Newbrough C of E Primary School 45 8,443.93 Tritlington C of E 1st School 31 9,233.64 Wark C of E First School 31 9,233.64 Whalton C of E First School 51 6,803.74


Whitfield C of E Aided Primary School 45 9,094.79 Norham St Ceolwulf's C of E First School 43 7,775.70 Herdley Bank C of E VA Primary School 6 1,077.01 Lowick Church of England Voluntary Controlled First School 28 9,598.13 Thropton Village 1st School 54 6,439.25 Seahouses Middle School 103 35,656.07 Bellingham Middle School A Specialist Sports College 137 26,263.01 Glendale Middle School 121 29,268.79 Dr. Thomlinson C of E Middle 211 12,361.27 ST PAUL'S RC VA MIDDLE SCHOOL 154 23,069.36 Belford St Marys C o E Voluntary Aided Middle School 88 35,468.21 Haydon Bridge High School 363 23,700.00 James Calvert Spence College 258 17,000.00 Haltwhistle Community Campus (Multi-Academy Trust) 199 14,615.61 Total amount of Sparsity funding 519,719.75


Documents

NORTHUMBERLAND COUNTY COUNCILcommitteedocs.northumberland.gov.uk/MeetingDocs/25813_M... · 2017-03-07 · NORTHUMBERLAND COUNTY COUNCIL Report of Audit Committee Working Group Education