Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: January 14, 2025

Purpose: Cabinet is recommended to approve the draft 2025/26 Local Funding Form ula (LFF) for 5- to 16-year-olds which is used to allocate the Schools Block of the Dedicated Schools Grant (DSG) to schools and academies in Waltham Forest.    

Content: Cabinet approved: (1)          the draft Schools Block Local Funding Formula for 2025/26 for 5- to 16-year-olds at Appendix A of the report; (2)          using the maximum Minimum Funding Guarantee permitted (+0.0%); (3)          that, if after running the formula, there are unallocated funds or over allocation of funds, that such amounts are adjusted through adjusting the rates for Basic Entitlement (AWPU) subject to those permitted by the Department for Education; and (4)          that, if the rates for Basic Entitlement (AWPU) reach the maximum permitted, any further funds will be applied to the Growth Fund.   Options & Alternatives Considered The ESFA requires local authorities to bring their own formulae closer to the schools NFF and, relevant to Waltham Forest is, that local authorities are not allowed to ‘overshoot’ the NFF value of a formula factor by more than 2.5%, setting a limit on the use of any unallocated funds to increase Basic Entitlement (AWPU). Waltham Forest started using the NFF factor rates in 2020/21, taking advantage of the raising of the Minimum Funding Guarantee (MFG) that year to share the increase in funding and protect schools from any redistribution flowing from the adoption of NFF factor rates. The MFG protects schools’ per-pupil funding and since 2020/21 Schools Forum has agreed to maximise the use of the positive MFG.