Contact: Felicity Dickinson, Deputy Branch Manager, Children and Families, 01962 847996, [email protected]

1 Summary

1.1 This report seeks endorsement of the outcomes of a consultation on a revised method of distributing special educational needs (SEN) funding to mainstream primary and secondary schools. It is intended to implement the revised SEN funding formula for mainstream schools to inform schools' budgets with effect from the financial year 2006/07.

1.2 This report supports the aims of the County Council, in particular: developing the quality of life in Hampshire; and providing high quality services to the public through well trained, managed and motivated staff.

1.3 The proposal in the report also supports the five outcomes for children required by the Children Act 2004, viz. to be healthy; to stay safe; to enjoy and achieve; to make a positive contribution; and to achieve economic well-being.

2 Background

2.1 The SEN audit system of funding mainstream schools was introduced in Hampshire in 1994, initially covering primary schools and extended to secondary schools in 1996. The system was acknowledged as serving children in schools well. However, there were also concerns about workload, efficiency and cost effectiveness of the system. Following development work involving working groups of both primary and secondary school representatives, a move to a system that uses already available data was proposed. The revised system will relieve schools of a significant workload freeing up time for staff to concentrate on identifying, assessing and meeting children's needs.

2.2 A full consultation was initiated in February 2005 and completed in June 2005. A copy of the consultation document is attached (Schools Communication, reference: SC000869).

2.3 The SEN audit system was suspended during 2004/5 to allow the opportunity to develop a revised approach and the 2005/06 school budget allocations for SEN were allocated on the basis of a three year weighted average.

3 Revised SEN funding formula for mainstream primary and secondary schools

3.3 The proposed SEN funding formula will redistribute the money currently delegated to mainstream schools through the SEN audit but without the need for schools to submit detailed evidence. No money for high incidence (i.e. moderate learning difficulties, specific learning difficulties, and behaviour, emotional and social difficulties) statements of special educational needs is retained centrally but, as with the previous SEN audit approach, these funds will continue to be distributed through this new SEN funding formula. Free schools meals (FSM) and the Index of Multiple Deprivation (IMD) factors within the school budget share will remain unchanged. It is proposed that primary schools will continue to be allocated both a flat rate and a per pupil element for SEN as in the current arrangements.

3.4 The revised funding formula will use data that is already available to the County Council: attainment data, FSM and information from the IMD. The resulting basic funding formula will provide a whole school resource to address the need of all pupils with SEN.

3.5 By using these proxy indicators, a special educational needs budget can be calculated at school level. This is a multi-layered model within which the factors interact according to context and give a pupil and school profile of SEN.

3.6 Viable options have been considered which would reflect a school's profile of need and a funding model has been developed that identifies the propensity for SEN within the total school population. The factors applied are prior attainment; free school meals; the index of multiple deprivation and gender.

3.7 This proposed method has the benefit of being objective in terms of data collected and has statistical validity in the way it combines all relevant aspects. Although the calculation is pupil specific, it eliminates the identification of the individual pupil as a funding source and emphasises the focus on interventions and outcomes in terms of pupil progress.

3.8 A key principle of the revised funding process is the emphasis on the SEN allocation as a whole school resource based on a pupil and school profile of need. Schools will be able to use the whole resource flexibly to meet the identified needs of pupils in line with their agreed priorities for intervention.

3.9 Because of the very specific nature of provision for children with sensory and physical needs, it is proposed that evidenced submissions be made for children within these categories of need who are recorded at School Action Plus by the school.

4 Outcome of consultation

4.1 270 responses were received. The results of the consultation indicate a strong preference (80%) for the revised data based system as opposed to retention of the SEN Audit. Those schools that responded also indicated a strong preference to submit evidence for physical and sensory needs at School Action Plus only.

4.2 The Education Finance team is working in partnership with head teacher groups to establish transition arrangements.

5 Legal implications

5.1 None.

6 Financial implications

6.1 There are mechanisms and processes in place to moderate the rate of change for schools. The evidence so far is that the greatest changes are likely to affect a modest number of primary schools. It has been agreed with the representatives of primary school headteachers that the increases and decreases in funding as a result of the change in method will be phased in over three years. The continuation of the minimum funding guarantee which ensures that on a per pupil basis all primary and secondary school budget shares increase each year provides another level of protection. Any issues arising from the first year of operation of the new method of funding primary and secondary schools for pupils with special educational needs will be examined with headteacher's representatives in the summer term of 2006.

7 Personnel implications

7.1 These proposals significantly reduce school staff workload.

8 Impact assessment

8.1 Race and equality impact assessment has been considered in the development of this report and no adverse impact has been identified.

9 Crime prevention issues

9.1 None

10 Views of the Local County Councillor

10.1 This proposed revision to the funding system for delegated SEN resources to mainstream schools affects all mainstream primary and secondary schools in Hampshire. The views of local councillors have not been sought.

Recommendations

1 It is recommended that the revised SEN funding formula for mainstream primary and secondary schools is endorsed.

Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report.

NB: the list excludes

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.

None