The Redbridge Schools Forum met on Tuesday 12 November 2024 to discuss a range of financial and operational matters affecting schools in the borough. Key decisions included the approval of changes to the Redbridge Scheme for Financing Schools and the inclusion of an exceptions process in the Falling Rolls and Growth criteria. The forum also reviewed updates on the Dedicated Schools Grant, Early Years funding, High Needs funding, and SEND capital projects.

Scheme for Financing Schools

The Redbridge Scheme for Financing Schools was updated to align with new guidance from the Department for Education (DfE). These changes, which are retrospective from 1 April 2024, address the introduction of IFRS16 for local authorities, meaning all leases will now be classified as finance leases for accounting purposes. This classification requires the Secretary of State for Education's consent for all leases, as they are considered borrowing. However, the Secretary of State has provided blanket consent for common leasing activities. Schools must now contact the Local Authority (LA) Finance team before entering into any new leases, which will require LA approval. The forum agreed to add paragraphs 3.3 and 3.4 of the report to section 5.8 of the scheme. Discussions also highlighted the need for a clear process with defined timelines for lease approvals to ensure schools meet contract deadlines. Concerns were raised about the knowledge of School Business Managers (SBMs) in handling these new requirements, with the consensus being that it is the responsibility of Headteachers and Governing Bodies to ensure their SBMs have the necessary training.

Dedicated Schools Grant (DSG) Outturn 2023-24

The forum noted the Dedicated Schools Grant (DSG) outturn for 2023-24, which showed a carry-forward reserve of £7.271 million to 2024-25, a reduction from the previous year. The report also detailed the carry-forward for the Early Years Foundation Stage (EYFS) and central blocks. A question was raised about the impact of expenditure reductions on the admissions service and its funding. It was clarified that the LA was not spending less, but changes in how the 11-plus system was funded had led to cost reductions. The high needs reserve of £3.4 million was noted as 5% of the overall allocation.

Early Years Update

An update on Early Years entitlement funding allocations was presented. An initial underspend of £414,000 was reduced to £321,473 after accounting for the Transition and Progression Grant (TPPG), which will be carried forward to 2024-25. SEN inclusion was the only area of overspend, though the number of claims has since reduced. Initial allocations for 2024-25 were noted, and it was anticipated that Early Years reserves and contingency funding would cover mid-year adjustments from the DfE, making it unlikely that the LA could provide further underspend allocations to providers in 2024-25. The DfE analysis indicated a demand for places for two-year-olds and under-twos, primarily in the Private, Voluntary, and Independent (PVI) sector, though schools also had opportunities to receive funding. Capital funding is available for adapting accommodation, with priority given to schools for wraparound care provision in the first phase. All primary schools are required to offer wraparound care between 8 am and 6 pm. Currently, 26 primary schools are ready, 22 need to expand, and 8 need to create provision, with a target of 2000 wraparound care places needed by September 2026. Uptake of funded places is good, with 88% of Redbridge residents using the service.

High Needs Funding Sub Group and High Needs Block Update

The forum reviewed an update on the High Needs Block. The High Needs Funding sub-group has appointed a Co-Chair, Richard Laws, and a Headteacher representative, Cassim Bana. The impact of additional notional funding for 2024-25 was noted, with £1.2 million projected for schools where over 3% of pupils have an Education, Health and Care Plan (EHCP). In 2023-24, the high needs budget faced a pressure of £1.186 million in additional spending, resulting in a £230,000 overspend and a reduction in reserves. For 2024-25, a review and restructure of high needs provision will be undertaken, including tuition support and measures to reduce permanent exclusions. The demand for respite care to prevent exclusions was highlighted, as was the funding mechanism when a pupil is excluded. The LA will only fund education for Redbridge residents at Brookside, a tier 4 mental health facility, with counter charges made for pupils from other boroughs. The DfE has blocked the setup of schools in hospitals.

SEND Capital Update

An update on capital SEND projects was provided. An increase in pupils with medical needs has led to a greater requirement for tutoring space. Wanstead Youth Centre is being converted into an Alternative Education Hub to support pupils returning to mainstream school. Hatton Special School is being enhanced for complex needs, and Park School is being converted for SEN provision. Work at William Torbit School will create additional SEN capacity, freeing up space at Little Heath for 11-16 year olds. New Rush Hall is available for Social, Emotional, and Mental Health (SEMH) needs, but places are not being taken up quickly enough. The proposal for expanding places will be shared in September 2024. The cabinet approval for £6.1 million for works at Wanstead Youth Centre is pending, after which the procurement process will begin. The criteria and process for applying for SEN capital funding will be circulated.

De-delegation Update

The forum noted an update on de-delegation for 2024-25, which applies only to maintained schools and not PRUs or special schools. Services that can be de-delegated include additional school improvement services, contingencies, behaviour support, support for underperforming ethnic groups and bilingual learners, free school meals eligibility, museum and library services, licences and subscriptions, and staff costs for supply cover. The per-pupil rates for de-delegation for 2024-25 were presented, showing slight increases compared to 2023-24 for services such as Schools Causing Concern, Contingencies, Free School Meals Eligibility, Staff Costs Supply Cover, and Additional School Improvement Services. An overspend of £45,000 on staff cover costs was attributed to academies not contributing to facility time payments.

School Balances as at 31 March 2024

Maintained schools in Redbridge collectively held revenue balances of £24.148 million and capital balances of £1.237 million at the end of March 2024. Schools with balances exceeding 8% of their income (for primary and special schools) or 5% (for secondary schools) will be required to explain their plans for these reserves. The LA will be discussing the way forward with these schools, with a focus on one or two schools for more detailed review this year. A group will be established to examine school balances, and any clawed-back funds would be added to the schools block and redistributed. Consideration will be given to the number of SEN pupils when reviewing reserves. A tiered system will be used to check the reasons for large reserves, with schools moving to higher tiers being brought to the forum.

Schools in Financial Difficulty

The forum noted that two schools are currently in financial difficulty, with another expected to be in difficulty by the end of the year. The LA has recruited a staff member to support these schools and is working with the DfE to offer Schools Resource Management Advisors (SRMAs), some of which are free of charge. Some schools have declined this support. If a school has low balances and rejects an SRMA, delegated authority may be removed. The primary reasons for schools entering financial difficulty were identified as dropping pupil numbers and poor budget management.

Falling Rolls Fund Update

The Redbridge Criteria for funding from the Growth Fund and the Falling Rolls Fund were noted, which take into account DfE guidance. The forum approved the inclusion of an exceptions process in these criteria. Falling rolls funding is available for a maximum of two years and covers Key Stages 1, 2, and 3 only. Growth funding is provided for new classes in September. Currently, two schools meet the criteria for falling rolls funding. A point was raised that the criteria stating the school must be good or outstanding should be removed to ensure all schools are included. This will be reviewed further, with each school assessed on a case-by-case basis. While there is currently no issue with falling rolls at the secondary school level, some secondary schools have capped their numbers due to demand exceeding their intake capacity. The forum noted that sixth form funding is not addressed by this forum, although some sixth forms may require support.

Update on Schools Grants

The forum was informed that post-16 information would be circulated and that an additional grant is now included in the General Annual Grant (GAG). A £3 per pupil grant for managed needs from September, which can be claimed for capital investment, will be added to the agenda for the October meeting and included in the action plan.