Financial implications

Revenue

The proposed amalgamation will reduce the overall cost to the Dedicated Schools Grant which will result in an adjustment through the funding formula meaning there is no impact to Council’s revenue budgets.

Each school currently receives a lump sum allocation as part of the delegated Schools’ budget.

This illustration is based on the 2021/22 schools operational guidance and using the 2021/22 lump sum amount of £118,442 per school.

For the 2022/23 financial year, the schools will receive £236,884 (2x lump sums) between them. This will be broken down as follows:
 
 Infant School £49,351 (£118,442 x 5/12 April to August) 
 Junior School  £49,351 (£118,442 x 5/12 April to August)
 Primary School  £138,182 (£236,884 x 7/12 September to March)
 Total  £236,884  
For the 2023/24 financial year, the primary school will receive £201,351. This is the equivalent of 85% of the predecessor schools’ lump sums, calculated as follows:
 
 Primary School £118,442   
 Additional payment £82,909  ((£118,442 x 2) x 85%) - £118,442 
 Total  £201,351  
The local authority can also apply to provide a second year of protection. The most recent application to Education and Skills Funding Agency (ESFA) recommended by the Schools Funding Forum on 16 October 2018 sought 60% lump sum protection in the second year. The ESFA consider applications on a case-by-case basis.

PE and sport premium

PE and sport premium is calculated and allocated annually by the DfE. It is currently calculated so that schools with 17 or more eligible pupils receive £16,000 plus an additional payment of £10 per pupil. 

As a result of this proposal, Wellfield Primary School would be allocated one £16,000 lump sum and a £10 per pupil allocation based on the number on roll. This represents an overall reduction of £16,000 as previously both the Infant and Junior Schools received a lump sum amount.

Revenue savings

An amalgamated primary school will achieve savings in the following areas:
  • reduction in Headteacher salary costs 
  • one purchase of certain services rather than two, such as governor support and human resources

Capital

Devolved formula capital (DFC) allocation

DFC is allocated to schools annually by the DfE using a formula. Each school is allocated a lump sum of £4,000 and an amount per pupil based on the phase of education. 

As a result of this proposal, Wellfield Primary School would be allocated one £4,000 lump sum and a per pupil allocation based on the number on roll. This represents an overall reduction of £4,000 as previously both the Infant and Junior Schools received a lump sum amount.

Schools condition allocation (SCA)

SCA is allocated to the local authority annually by the DfE. Our School Asset Management Plan information combined with Area Surveyor knowledge is used to prioritise and allocate this funding on an annual basis. The funding process for allocating SCA for condition improvements for school buildings will remain unchanged as a result of this proposal. There is no SCA funding linked with this proposal.

Basic need funding

Basic Need funding is calculated and allocated to the local authority annually by the DfE. This funding is for the creation of additional of school places. This amalgamation proposal does not include an expansion of pupil number and therefore is not eligible for basic need funding.

 

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