Purpose

Any
number of additional homes built in Surrey are likely to yield an
additional number of school age children. The number of additional
children expected to be provided from new housing is calculated
using a specified pupil product ratio – for example, it is
currently estimated that 100 new homes would provide 25 additional
primary aged children who require a school place. This number is
then multiplied by a cost per place, usually based on the
Department for Education (DfE) basic need cost multipliers –
the current costs are set out below:
 

 

Early Years

Primary

Secondary

DfE
2024-25 cost multipliers

£13,541 per FTE

£19,345

£24,856

 
The
basic need rate per place for 2025/26 calculated by DfE, uses the
base rate per place from the 2017-18 allocations, inflated
according to the independent Building Cost Information Service
(BCIS) All-in Tender Price Index (TPI). This is so that it reflects
changes in construction inflation construction inflation between
August 2017 and August 2025. The rate per place is subsequently
weighted by BCIS regional location factors.
 
The
secondary cost is set at 30% higher than the primary rate to
reflect the higher costs associated with creating secondary school
places. The funding rates have then been uplifted by around 10% to
support costs associated with achieving improved sustainability
standards, providing the following cost multipliers for
2025/26:
 

 

Early Years

Primary

Secondary

DfE
2025-26 cost multipliers

£13,754 per FTE

£19,648.88

£25,246.53

 
Details of the basic need rates for 2023/24 to 2025/26 are shown
in Annex 1.
 
The proposal is to update the
cost multipliers to reflect the later rates from DfE.

Content

It
was AGREED that:
 

1. The cost multipliers be updated to 2025-26 rates
as set out in the summary.
 

Reasons for the decision

The
rates being used are those used by DfE for our basic need funding
allocation and therefore should be more representative of actual
costs.
 

Alternative options considered

None