What’s caused the Bristol schools funding crisis?

Brace yourself, it’s dense…

Nationwide pressures

Heads are grappling with a list of new or increased costs: Teachers’ pay has increased 1% this year after a freeze, and there are cost of living impacts compounding problems with schools funding generally, including an increase in the non-domestic rates that schools must pay. Changes instigated last year to the weighting given to deprivation-related funding also saw many Bristol schools lose funds, while the newly compulsory apprenticeship levy required from schools further piles on the pressure.

National factors bearing on the local authority include the introduction of the Children and Families Act in September 2014 which extended the responsibilities of the Local Authority (LA) for students up with SEN or disability up to 25 years of age, from 19 – with no reflective increase in budget.

The government also removed the ability for local authorities to move funding between different ‘dedicated schools grant’ blocks (such as early years, high needs, etc), which may help mitigate some budget pressures, in the 2015/16 school year.

National funding failure

In January this year, the government published its guidance on a new ‘national funding formula’ (NFF) that will replace the current system of resource allocation administered through local authorities. Under the proposals schools will receive per pupil funding based on a fixed formula which takes into account variables like additional needs, such as deprivation or English as a second language, and location.

In preparation for the change, which is due to come into force in 2018/19, the government is already dramatically reducing the ‘education support grant’ – the block used for central services and administered by the LA. Notes from the January schools forum estimate that this funding will fall £1.197million short of the amount spent on supporting schools in 2016/17.

The National Audit Office has warned that schools need an 8% increase in funding to be able to cope with increased costs. Most Bristol schools are expected to lose out under the NFF, but even those who can expect a gain will see around a 6% increase – meaning their funds are still being cut in real terms.

The local picture

In May 2016, schools were tasked with an urgent reductions in ‘high needs’ spending, after a £5.57million overspend was reported by the local authority. Sudden cuts in SEN provision were implemented during the summer term. The deficit has rolled over into the current school year, with a forecast overspend of £5million predicted to persist until the end of next year.

The £5.57million increase in high needs spending was attributed to, in part: high numbers of secondary school exclusions (circa £1m), an increase in the population and numbers of school based request for ‘top up’ funding for pupils with SEN (circa £1.5m) and the introduction of minimum banding levels for special schools to maintain financial stability (circa £2m). The pressure has left schools struggling to accommodate pupil’s special educational needs, says Barry.

To address the deficit, the LA this academic year has changed its approach to funding pupils for their SEN support. Previously schools could apply for extra ‘top up’ funding for pupils whose additional needs necessitated more than an extra £6,000 per year. Now, top up funding is only available above £10,000.

Barry says that this change contributes to the squeeze on school’s general staffing budgets: the extra £4,000 now included as part of the pupil’s SEN budget is actually the base amount per every pupil that pays for teaching staff.

Paul Jacobs, service director for education and skills, said the process of distributing top up funding made planning difficult for the LA. Special needs requirements are worked out between schools and the local authority, on the basis of individual pupil’s needs only – without a big picture view.

He says the issue “returns to the simple fact that different, less expensive ways to support [pupils] with SEND must be the focus and all partners with state funding must look to ensure they are using their budgets appropriately”. He added that the authority was working hard to reduce permanent exclusions with a Pushed Out Learners strategy.