Made | 21 September 2004 | ||
Coming into force | 30 September 2004 |
1. | Name, commencement and application. |
2. | Interpretation. |
3. | Revocation and transitional provisions. |
4. | Allocation of individual schools budget. |
5. | Timing of initial determination of budget shares. |
6. | Consultation. |
7. | Formula for determination of budget shares. |
8. | Pupil numbers. |
9. | Pupil numbers : Dual registration. |
10. | Places. |
11. | Schools of a particular description. |
12. | Differential funding. |
13. | Additional factors or criteria. |
14. | Funding for pupils over compulsory school age. |
15. | Revision of National Council grant. |
16. | Budget share adjustments. |
17. | School re-organisation. |
18. | Redetermination of budget shares. |
19. | Pupils excluded or admitted following an exclusion. |
20. | Percentage of "pupil-led" funding. |
21. | Correction of errors. |
22. | Additional arrangements approved by the National Assembly. |
Schedule | Additional factors or criteria which may be taken into account in a local education authority formula under regulation 13. |
(2) In these Regulations a reference (however framed) to a maintained nursery school, a community, foundation or voluntary school or a community or foundation special school includes a new school (within the meaning of section 72(3) of the 1998 Act) which on implementation of proposals for the establishment of the school under any enactment will be such a school and which has a temporary governing body.
(3) In these Regulations a reference to a governing body includes the temporary governing body of a new school falling within paragraph (2).
(4) In these Regulations a reference to a primary or secondary school means a primary or secondary school which is (or will be) a community, foundation or voluntary school.
(5) In these Regulations a reference (however framed) to schools maintained by a local education authority does not include schools which are not maintained schools as defined in paragraph (1).
(6) In these Regulations a reference to the permanent exclusion of a pupil is a reference to the pupil's permanent exclusion as defined from time to time for the purposes of section 494 of the 1996 Act[9].
(7) Unless the context otherwise requires, words or expressions used in these Regulations set out below in this paragraph have the meanings given to them by the provisions specified -
(8) Unless the context otherwise requires, a reference in these Regulations to a numbered regulation is a reference to the regulation of these Regulations so numbered and a reference to a numbered paragraph is a reference to the paragraph so numbered in the regulation or Schedule in which the reference appears.
Revocation and transitional provisions
3.
- (1) Subject to paragraphs (2) and (3) and to the extent they apply in Wales, the 1999 Regulations (so far as not already revoked[13]), the Financing of Maintained Schools (Amendment) (Wales) Regulations 2000[14], the Financing of Maintained Schools (Amendment) (Wales) Regulations 2001[15], the Financing of Maintained Schools (Amendment) (Wales) Regulations 2002[16] and the Financing of Maintained Schools (Amendment) (Wales) Regulations 2003[17] are revoked from 1 April 2005.
(2) Notwithstanding paragraph (1), a school's budget share may be redetermined under the 1999 Regulations, in the financial year beginning on 1 April 2005, if such redetermination makes provision for -
(3) Notwithstanding paragraph (1), Part IV (Schemes) and Schedule 5 to the 1999 Regulations remain in force.
Allocation of individual schools budget
4. -
A local education authority must allocate in each financial year, in accordance with the following provisions of these Regulations, all of their individual schools budget for that financial year as the budget shares of schools which they maintain.
Timing of initial determination of budget shares
5.
- (1) The amount of a school's budget share for a financial year must be initially determined by the local education authority before the beginning of that financial year.
(2) A local education authority need not initially allocate all of their individual schools budget in the form of budget shares at the beginning of a financial year, and may instead retain an amount for the purpose of redeterminations or the correction of errors but such amount must be used for that purpose or distributed to schools as required by regulation 18(4) before the end of that financial year.
Consultation
6.
- (1) In addition to consulting the schools forum for their area[18], a local education authority must consult the governing body and head teacher of every school which they maintain about any proposed changes to the factors and criteria which were taken into account, or the methods, principles and rules which were adopted in their formula under the 1999 Regulations or these Regulations in the preceding financial year (including any new factors, criteria, methods, principles or rules).
(2) Paragraph (1) shall not apply to changes made pursuant to regulations 5(2), 15, 18(3) or 19.
(3) Consultation under this regulation must take place in sufficient time to allow the outcome to be taken into account in the determination of the authority's formula and in the initial determination of schools' budget shares before the beginning of the financial year in question.
(4) A local education authority must inform all those who were consulted of the outcome of the consultation.
(5) The requirement to consult in paragraph (1), in relation to changes proposed for the financial year beginning on 1 April 2005, may be satisfied by consultation which takes place during the financial year beginning on 1 April 2004 before the coming into force of these Regulations.
Formula for determination of budget shares
7.
- (1) A local education authority must determine before the beginning of a financial year, and after the consultation referred to in regulation 6, the formula which they will use to determine schools' budget shares in that financial year having regard to the factors, criteria and requirements set out in these Regulations.
(2) A local education authority must have regard to the desirability of such a formula being simple, objective, measurable, predictable in effect and clearly expressed.
(3) A local education authority may not use factors or criteria in their formula which make an allowance, in whole or in part, for any amount allocated to the school from any grant paid to the authority by the National Assembly or the National Council.
(4) Subject to regulation 22 (additional arrangements approved by the National Assembly) a local education authority must use the formula determined under paragraph (1) in all determinations and redeterminations of budget shares in respect of that financial year.
Pupil numbers
8.
- (1) In determining budget shares for primary and secondary schools and nursery schools, a local education authority must take into account in their formula the number of registered pupils at those schools on such date or dates as may be determined by the authority, weighted if the authority consider it appropriate in accordance with paragraph (8).
(2) For the purposes of paragraph (1), the number of registered pupils does not include -
(3) Where the authority determine only one date for the purposes of paragraph (1) it must be a date which falls -
(4) Where the authority determine more than one date for the purposes of paragraph (1) then -
(5) Paragraphs (4) and (5) do not apply in relation to pupils in nursery or reception classes whom the authority take into account under paragraph (1).
(6) An authority may, in determining budget shares for special schools, or for primary or secondary schools with places which the authority recognise as reserved for children with special educational needs or for children in nursery classes, take into account in their formula -
on such date or dates as may be determined by the authority (weighted if the authority consider it appropriate in accordance with paragraph (8)).
(7) If the authority estimate the number of registered pupils at a school in accordance with paragraph (4)(b) they must consult the head teacher of the school.
(8) A local education authority may weight pupil numbers according to any or all of the following factors -
(9) A local education authority must include provision in their formula enabling them to adjust the number of registered pupils used to determine a school's budget share where it is appropriate to do so in order to take into account, wholly or partly, the permanent exclusion of a pupil from the school or the admission of a pupil following that pupil's permanent exclusion from another school maintained by a local education authority.
Pupil Numbers: Dual Registration
9.
Where a pupil is, in accordance with regulations made under section 434 of the 1996 Act[19], a registered pupil at more than one school then that pupil must be treated as being a full-time pupil at each such school unless the authority expressly provide otherwise in their formula.
Places
10.
In determining budget shares for -
a local education authority may take into account in their formula the number of places which they wish to fund at those special schools, in the case of paragraph (a), or the number of places for children with special educational needs in the case of paragraphs (b), (c) and (d) and in all cases may take account of the special educational needs in question.
Schools of a particular description
11.
Where a local education authority deduct from their schools budget planned expenditure which relates to maintained schools of a particular description, they must include factors or criteria in their formula in respect of that planned expenditure, in relation to maintained schools which do not fall within that description.
Differential funding
12.
A local education authority must not use in their formula any factors or criteria which discriminate between schools by reference to their category under the 1998 Act except where differences in the functions of the governing bodies of schools of different categories justifies such discrimination.
Additional factors or criteria
13.
- (1) Subject to regulations 11 and 12, a local education authority may, in determining budget shares for schools which they maintain, take into account in their formula, as they consider appropriate, any or all of the factors or criteria set out in the Schedule, as provided for in the Schedule.
(2) A local education authority must, in determining budget shares for both primary and secondary schools which they maintain, take into account in their formula a factor or factors based on the incidence of social deprivation among pupils registered at all such schools.
(3) A factor included in an authority's formula pursuant to paragraph 19 of the Schedule is not, for the purpose of paragraph (2), a factor based on the incidence of social deprivation among pupils registered at a school.
Funding for pupils over compulsory school age
14.
- (1) Subject to regulation 16 (Budget share adjustments) the budget share for a financial year for a secondary school or special school that provides education suitable for the requirements of persons over compulsory school age must include an amount ('the Amount') in respect of that school's pupils above compulsory school age.
(2) The Amount must include, on a net basis -
(3) To the extent the Amount is not subject to the conditions in the Grant, a local education authority must, in determining budget shares use a factor which allocates funding in respect of pupils over compulsory school age.
Revision of National Council Grant
15.
A secondary school's or special school's budget share for the financial year in question must be redetermined by the end of that financial year pursuant to written notification from the National Council of a revision in the grant previously determined for that financial year.
Budget share adjustments
16.
- (1) To the extent that a school's budget share for the preceding financial year was -
the local education authority must determine that school's budget share for the financial year in question so as to take into account those differences.
(2) A local education authority may determine a school's budget share for the financial year in question so as to take into account any other change during the course of the preceding financial year in the data by reference to which the school's budget share for that year was determined, if those changes were not taken into account in a redetermination of the school's budget share for the preceding financial year.
(3) A local education authority may adjust the number of registered pupils used to determine a school's budget share where it is appropriate to do so in order to take into account, wholly or partly -
(4) A local education authority must include factors or criteria in their formula which satisfy the requirements of this regulation.
School re-organisation
17.
- (1) In the case of a maintained school which is -
the local education authority must include factors or criteria in their formula which enable them to determine the school's budget share so as to take into account the particular needs of the school; and in particular may, in any financial year preceding the financial year in which a school first admits pupils, determine the amount of the budget share as zero.
(2) For the purposes of these Regulations, proposals for the establishment of a school have been fully implemented when the number of pupils admitted to the school in each age group has, in the opinion of the local education authority, reached -
Redetermination of budget shares
18.
- (1) A local education authority must include factors or criteria in their formula which enable them to redetermine a school's budget share during the course of a financial year if they so wish to take account (wholly or partly) of -
(2) A local education authority must set out in their formula the factors or criteria that they will use in redetermining schools' budget shares in accordance with paragraph (1), to allocate the planned expenditure referred to in paragraph 30 of Schedule 2 to the 2003 Regulations[21].
(3) A local education authority must include factors or criteria in their formula which enable them to adjust the number of registered pupils used to determine or redetermine a school's budget share where it is appropriate to do so in order to take into account, wholly or partly -
(4) Where a local education authority propose to retain part of their individual schools budget pursuant to regulation 5(2) for the purpose of redeterminations or the correction of errors they must include factors or criteria in their formula which require them to redetermine schools' budget shares before the end of the financial year in question so as to distribute to schools the unallocated balance of any such retained amount on the basis of pupil numbers in accordance with regulation 8(1) or (6).
Pupils excluded or admitted following an exclusion
19.
- (1) Where, in the financial year in question, a pupil is permanently excluded from a school maintained by a local education authority, the authority must redetermine the school's budget share for that financial year in accordance with paragraph (2).
(2) The school's budget share is to be reduced by the amount A x (B/52) where -
A is the amount, in the financial year in which the permanent exclusion takes effect (as defined from time to time for the purposes of section 494 of the 1996 Act[22] ("the relevant date")), determined by the authority, in accordance with these Regulations to be attributable for the full financial year to a registered pupil of the same age and characteristics as the pupil in question at primary or secondary schools maintained by the authority:
For the purposes of this definition the amount attributable to a registered pupil is the sum of the amounts determined in accordance with the authority's formula or regulation 22 by reference to pupil numbers rather than by reference to the number of places at the school or any other factor or criterion not dependent on pupil numbers; and
B is the number of complete weeks remaining in the financial year calculated from the relevant date:
EXCEPT that where the permanent exclusion takes effect on or after 1 April in a school year at the end of which pupils of the same age or age group as the pupil in question normally leave that school prior to being admitted to another school with a different pupil age range, B is the number of complete weeks remaining in that school year calculated from the relevant date.
(3) Where in a financial year a pupil is admitted to a school maintained by a local education authority ("the admitting school") who has been permanently excluded from another maintained school in that financial year the authority must redetermine the admitting school's budget share in accordance with paragraph (4).
(4) The school's budget share is to be increased by an amount which may not be less than the amount D x (E/F) where -
D is the amount by which the authority reduce the budget share of the school from which the pupil was permanently excluded or would have reduced it had that school been maintained by the authority;
E is the number of complete weeks remaining in the financial year during which the pupil is a registered pupil at the admitting school;
F is the number of complete weeks remaining in the financial year calculated from the relevant date.
Percentage of "pupil-led" funding
20.
- (1) Subject to paragraph (2), in determining and redetermining budget shares for primary and secondary schools a local education authority must ensure that their formula provides that at least 70 per cent. of the amount which is their individual schools budget is allocated in one or more of the following manners -
(2) For the purposes of this regulation, the budget shares of schools providing education for pupils over compulsory school age, of special schools and any part of the individual schools budget retained pursuant to regulation 5(2) for the purpose of redeterminations or the correction of errors must be excluded from the local education authority's individual schools budget.
Correction of errors
21.
A local education authority may at any time during the financial year redetermine a school's budget share for that financial year in order to correct an error in a determination or redetermination under these Regulations, whether arising from a mistake as to the number of registered pupils at the school or otherwise.
Additional arrangements approved by the National Assembly
22.
The National Assembly may, where it appears to it to be expedient to do so, authorise a local education authority to determine or redetermine budget shares, to such extent as it may specify, in accordance with arrangements approved by it in place of the arrangements provided for elsewhere in these Regulations.
Signed on behalf of the National Assembly for Wales under section 66(1) of the Government of Wales Act 1998[23]
D. Elis-Thomas
The Presiding Officer of the National Assembly for Wales.
21 September 2004
to be determined on a basis decided by the authority which must have regard to the number of registered pupils at the school.
16.
Payments in relation to a private finance transaction as defined in regulation 16 of the Local Authorities (Capital Finance) Regulations 1997[24] (including actual or estimated cost).
17.
Amounts payable to a school which is, as the result of the discontinuance of one or more maintained schools, either established or, pursuant to Chapter II of Part II of the 1998 Act, the subject of prescribed alterations, to reflect the extent to which a school which has been discontinued has spent more than or has not spent all of its budget share (within the meaning of the 1996 or the 1998 Act) in any financial year. Any such factor or criteria must provide that any amount deducted must not exceed the amount which the school receives during the financial year as part of its budget share by virtue of being a new school.
18.
Whether the school is to be discontinued in the financial year in question.
19.
School milk, meals and other refreshment: the authority may not treat any element of this expenditure as having a negative value.
20.
Salaries at a school (including actual or estimated cost): the funding must be in accordance with a scale published by the authority.
21.
Safeguarding of salaries in accordance with orders made from time to time under section 122 of the 2002 Act[25] or safeguarding other salaries.
22.
Social priority allowances in accordance with a School Teachers' Pay and Conditions Document having effect in accordance with an order under section 122 of the 2002 Act[26] (including actual or estimated cost).
23.
The need for single payments to be allocated to primary, secondary or special schools, or any combination of such schools, regardless of size.
24.
The need for payments to be allocated to schools, of a size and satisfying other conditions, specified by the authority.
25.
Schools whose budget shares would otherwise be reduced year-on-year by more than 5 per cent: the funding must be in accordance with a scale published by the authority.
26.
Contracts to which the governing body of a school are bound by virtue of a provision in the authority's scheme (including actual or estimated cost).
27.
Payroll administration costs: the funding must be based on the number of staff at the school, unless factors permitted elsewhere in these Regulations are used.
28.
Any other factors or criteria not otherwise falling within this Schedule provided that the total amount allocated in accordance with the authority's formula, having regard to such factors or criteria, does not exceed 1 per cent of the authority's schools budget.
29.
Effect of taxation on schools.
30.
Incidence of pupils from ethnic minorities having below average levels of academic achievement in relation to other pupils in the authority's area, to be determined on a basis decided by the authority.
31.
Incidence of nursery classes and places recognised by the authority as reserved for children with special educational needs.
32.
Incidence of Newly Qualified Teachers.
33.
Housing development or armed forces' movements leading to an increase or reduction in numbers on roll at a school of at least 20% within the financial year in question.
34.
Prior attainment of pupils entering a school.
35.
Infant class sizes limited by Regulations made under section 1 of the 1998 Ac[27]): the authority may include a sum which reflects any increase in expenditure incurred as a direct result of those Regulations.
36.
Junior class sizes limited to a maximum of 30 pupils: the authority may include a sum which reflects any increase in expenditure incurred as a direct result of conditions contained in any special grant made in accordance with section 88A of the Local Government Finance Act 1988[28] or any arrangements for financial assistance provided in accordance with section 14 of the 2002 Act which requires an improvement of school standards by reducing class sizes.
[2] See the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672).back
[6] S.I.1999/101 amended by S.I. 2000/911 (W.40), 2001/495 (W. 22), 2002/136(W.19) and 2003/538 (W.75).back
[8] The National Council was established by section 30 of the 2000 Act.back
[9] Section 494 was substituted by paragraph 128 of Schedule 30 to the 1998 Act.back
[10] Section 45A was inserted by section 41(1) of the 2002 Act (S.I. 2003/2961 (W.278)).back
[11] Section 6(1) is amended by section 156(1) of the 2002 Act.back
[12] Inserted by the Education Act 1997 (c.44), Schedule 7, paragraph 43.back
[13] Regulations 2, 3 and 5 of, and Schedule 2, to the 1999 Regulations were revoked on 1 April 2004 by the 2003 Regulations.back
[14] S.I. 2000/911 (W.40).back
[15] S.I. 2001/495 (W.22).back
[16] S.I. 2002/136 (W.19).back
[17] S.I. 2003/538 (W.75).back
[18] The schools forums were established by regulation 2 of the Schools Forums (Wales) Regulations 2003 (S.I. 2003/2909 (W.275)).back
[19] The relevant Regulations, as at the date these Regulations are made, are the Education (Pupil Registration) Regulations 1995 (S.I. 1995/2089) which remain in force by virtue of paragraph 1 of Schedule 39 to the 1996 Act. Amending instruments are S.I. 1997/2624 and S.I. 2001/1109.back
[20] Section 113A was inserted by section 72(1) of the 2002 Act.back
[21] S.I.2003/3118(W.296).back
[22] Section 494 is substituted by paragraph 128 of Schedule 30 to the 1998 Act. The relevant Regulations are the Education (Amount to follow Permanently Excluded Pupil) Regulations 1999, S.I. 1999/495 as amended by the Education (Pupil Exclusions and Appeals) (Maintained Schools) (Wales) Regulations 2003, S.I. 2003/3227 (W.308).back
[24] S.I. 1997/319; amended by S.I. 1998/371 and S.I. 1999/1852.back
[25] As at the date these Regulations are made the relevant order is S.I 2002/2169.back
[26] As at the date these Regulations are made the relevant document is the School Teachers' Pay and Conditions Document 2003 (ISBN 0 11 271146-4). That document was given effect in the Education (School Teachers' Pay and Conditions) No 2 Order 2003 (S.I. 2003/2169) and amendments to it were given effect in S.I. 2003/2640 and 2004/658.back
[27] The relevant Regulations as at the date these Regulations are made are the Education (Infant Class Size Reduction) (Wales) Regulations 1998 (S.I. 1998/1943).back