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.
Where schools amalgamate during the financial year 2020 to 2021, or on 1 April 2021, the amalgamated school will retain the equivalent of 85% of the predecessor schools’ lump sums for the financial year 2021 to 2022.
2021/22 lump sum = £118,442
The additional payment would be £82,909 ((118,442 x 2) x 85% - 118,442)
Where schools amalgamate after 1 April 2021, the amalgamated school will receive funding equivalent to the formula funding of the two schools prior to amalgamation added together for the appropriate proportion of the year. This means that they receive the combined lump sum for the remainder of the year and 85% in the following year, as outlined above.
The local authority can also apply to provide a second year of protection. The most recent application to 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.
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, Stamford Park 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.
Read the next section - The consultation process