Changes in the National Funding Formula mean that Brent is gradually adjusting to a lower National Funding Formula (NFF) and this along with huge increases in energy bills, the cost of salary increases (which is why education unions are calling for them to be fully funded by the government), inflation and falling pupil numbers means that schools will facing extremely difficult financial circumstances in financial year 2023-24.
Many are already expecting an in-year deficit and (if they have them) will be digging into reserves to balance the books.
Our secondary schools have been academised and are directly funded by the DfE, so this is recouped from the Schools Block funding. A proportion of funding is allocated the Higher Needs Block) funding for Special Educations Needs and Disability) where demand is increasing.
A report going to the Schools Forum makes sombre reading:
Of the total £249.7m Schools Block budget allocated by the DfE to Brent, £131.9m has been recouped and allocated directly to academies. £1.2m has been transferred to the Higher Needs Block (HN and £1.8m has been deducted for National Non-Domestic Business Rates to be paid by the DfE directly to billing authorities, leaving £114.8m directly allocated to Brent maintained schools and to fund centrally retained items including the growth fund.
In 2022/23, the number of Brent schools projecting an in-year deficit has increased to 67%. 23% of these schools plan to use over 50% of reserves to balance their budgets. Schools are feeling the impact of rising inflationary costs and increases in energy prices alongside the prospect of teachers pay increasing by 5% in 2022/23 and starting salaries rising by 8.9% to £30k.
The DfE expects schools to manage these pressures within the allocated funding increase of 3.6% in 2022/23 and 1.2% expected in 2023/24.
A number of Brent schools are also experiencing falling rolls and as a result will have significant reductions in funding. This is requiring schools to make strategic decisions to mitigate the impact of this, including the consideration of staffing restructures.
In response to this, alongside measures to support schools, such as capping admission numbers, a School Place Planning Working Group will be established to review the sustainability of provision in some primary planning areas.
Staffing restructuring inevitably means the loss of some jobs and will have most impact on support staff such as teaching assistants and admin staff. These are predominatly women and often ethnic minority. As teaching assistants often have a teaching role through intervention programmes this could affect the quality of provision and pupil achievement.
The last paragraph regarding a review of the sustainability of provision could mean a reduction of the form of entry in some schools (i.e., the number of classes in each year group) when pupil numbers have dropped significantly and even, at the extreme, potential mergers or closures.
At first sight it might be assumed that fewer pupils will mean lower costs, but it is not that simple. A class of 24, rather than 30. will still need a teacher and teaching assistant and their classroom will need the same amount of heating and lighting. There may be a marginal reduction in the cost of per-pupil teaching material but that will be eaten up by inflation. Staffing costs take up to 85% of school budgets. A further cost that puts Brent schools at a disadvantage is that schools pay a greater proportion of staff costs to the Brent Council Local Government Pension Scheme that schools in other London boroughs.
6 pence extra for 3 and 4 year olds
Similarly, Brent nurseries are facing a reduction in real terms via the Early Years Block. There are government plans to worsen the staff-child ratios, but this would be catastrophic in Brent with its high number of EAL and disadvantaged children who need the best possible provision as a foundation to success in education:
Indicative rate increases for the Block are as follows:
Nationally, the 2-year-old rate will see increases ranging from 1% to a maximum 8.6%. The London average is 8.3%, whereas Brent will see an increase of 7.6% i.e., the 2022/23 funding rate of £6.29 will increase by 48p to £6.77.
Nationally, the 3 and 4 year old rates will see increases ranging from 1% to a maximum of 4.5%. The average increase for London is 1.7%. Brent will see an increase of £0.06, which represents a 1% increase i.e., from £5.81 for 2022/23 (including the illustrative TPPG rate) to £5.87.95% of the funding rate is passed on to providers and 5% is used to funding Early Help local authority services.
Local councils have little power as this Direct Schools Grant comes directly from government so it will need a concerted campaign of councillors, education unions, parents and carers and the support of our local MPs to challenge the government on education funding.
