Each local authority’s total dedicated schools grant (DSG) for 2006-07 was calculated by multiplying its full-time equivalent pupil numbers (aged three-15) from the January 2006 pupil count by its DSG guaranteed unit of funding (which is unchanged from that set in December 2005 and is available on Teachernet at:
www.teachernet.gov.uk/docbank/index.cfm?id=9405).
The DSG guaranteed unit of funding for 2006-07 was based on actual spend per pupil in 2005-06, with a basic increase of 5 per cent. per pupil (5.1 per cent. for London authorities) and headroom allocated to reflect new priorities (including £82 million early years expansion).
For those authorities below 90 per cent. participation for their three-year-olds in January 2006, the number of three-year-olds for funding purposes was brought up to 90 per cent. of the projected population.
The formula used to calculate schools formula spending share for 2005-06 and previous years took account of the differences in the cost of providing childcare at in different local authorities. Of the £2.886 billion Under-5 Schools FSS for 2005-06
approximately:
£138 million (or 5 per cent. of the total) was distributed on the basis of the area cost adjustment for areas where it costs more to recruit and retain staff; and
£319 million (or 11 per cent. of the total) was distributed on the basis of an index of pupils with additional educational needs.
Since the formula for DSG starts from local authorities’ actual spending on education for 2005-06, that will reflect the different local circumstances and variations in the cost of provision. The £82 million extra for the extension from 33 to 38 weeks was distributed on the basis of the number of full-time equivalent children in private, voluntary and independent settings (since pupils in maintained settings already received 38 weeks’free provision), weighted for area costs. Full details can be found in the guaranteed unit of funding model at:
www.teachernet.gov.uk/docbank/index.cfm?id=9405.
It is up to local authorities—in conjunction with their schools forum—to decide how to allocate their DSG between age groups and types of setting.
The current review of school funding will consider the funding of the free entitlement for nursery education. Following on from that, we will be issuing a consultation document in the spring.