The Schools' Forum met on Thursday 18 January 2024 to discuss the Dedicated Schools Grant (DSG) for the 2024/25 academic year, including detailed breakdowns of funding for different educational blocks. The forum also considered proposals regarding falling rolls funding and growth funding.

Dedicated Schools Grant (DSG) 2024/25

A significant portion of the meeting was dedicated to reviewing the provisional allocation of the Dedicated Schools Grant (DSG) for the 2024/25 academic year. This grant, provided by the Department for Education (DfE), is the primary source of funding for schools and local authorities. The report outlined how the total DSG allocation of £385,740,607 for Bromley would be divided into four key blocks: High Needs, Early Years, Schools, and Schools Central.

• Schools Central Block: This block, allocated £2,013,547, was expected to see a decrease of £32,000. The report indicated ongoing funding shortfalls in this area, with the council proposing to contribute £560,000 from its core funding to cover the deficit.
• Early Years Block: This block received a substantial increase of £14.7 million, bringing the total to £38,034,418. This rise was attributed to new government funding rates for various age groups, including under-twos, disadvantaged two-year-olds, and three and four-year-olds. The report detailed two scenarios for the distribution of this funding, with a preference for the scenario that maximised funding to early years settings.
• Schools Block: The Schools Block, which covers pupil-led funding, premises, and growth funding, was allocated £266,887,487. This represented an increase of £11.7 million, partly due to the inclusion of the Mainstream Schools Additional Grant (MSAG) from the previous year. The report detailed changes to the National Funding Formula (NFF) for 2024/25, including the integration of MSAG, increased factor values, and the introduction of a methodology for falling rolls funding. The report recommended using Option 4 for the NFF, which involved inflating the Age Weighted Pupil Unit (AWPU) by 0.25% and maintaining the Minimum Funding Guarantee (MFG) at 0.5%.
• High Needs Block: This block, allocated £65,268,934, continues to be the area of greatest financial pressure. Despite an increase in funding of £2.5 million, expenditure is predicted to rise at a faster rate, leading to an estimated deficit of £5.6 million for 2024/25. The report highlighted that the unsustainability of the Special Educational Needs (SEN) system is a national issue, with Bromley facing significant costs related to placements in independent settings due to a lack of local specialist provision. The cumulative DSG deficit was projected to be £16,149,000 by the end of the 2023/24 financial year, with the council needing to identify funding from its reserves to cover this shortfall.

Falling Rolls Funding

The meeting was scheduled to discuss proposals for Falling Rolls Funding, a new element of the Schools Block funding for 2024/25. While Bromley had a Falling Rolls Fund in previous years, it had been underutilised due to stringent criteria. The report noted that the DfE's new guidance would be merged with Bromley's existing criteria. A key discussion point was whether to continue with the Falling Rolls Fund, with the alternative being to incorporate the money into general school funding. The report indicated a recommendation to discontinue the fund for 2024/25, with the position to be reviewed annually.

Growth Funding

An update on Growth Funding was also presented. This funding, part of the Schools Block, is allocated per new primary and secondary pupil. The report stated that the guidance on Growth Funding did not significantly impact current arrangements, although rates had changed. Members were to be advised in January on which schools would qualify for Growth and Bulge Class funding, with the allocation of Bulge Class funding potentially requiring further discussion.

The meeting was scheduled to conclude with a review of any other business and the dates of future meetings.