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The School and Early Years Finance (England) Regulations 2025

Type Statutory-Instrument

Publication 2025-01-16

Last updated 2025-02-17

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(1) Where in the funding period, but excluding 1st April 2025, a new maintained school opens as a replacement for two or more maintained schools that are discontinued during the funding period, a local authority must calculate the budget share of the new school by adding together the budget shares of the schools that have been discontinued.

(2) Except where paragraph (1) applies, a local authority must determine a budget share for—

(a) any new maintained school in its area; and

(b) any school that has opened since 1st April 2018 and does not yet have pupils in each year group for which the school proposes to provide education,

from the date of the school’s opening, on the basis of expected pupil numbers during the funding period estimated by the local authority, and regulation 13 (pupil numbers) does not apply.

(3) Where a school to which paragraph (2) applies was funded on the basis of estimated pupil numbers in the previous funding period, the local authority may take account of any difference between estimated and actual pupil numbers in the previous funding period when estimating pupil numbers for the funding period.

(4) Where in the previous funding period, or on 1st April 2025, a new maintained school opened or opens as a replacement for two or more maintained schools that were discontinued during the previous funding period, or on 1st April 2025, a local authority must include in the budget share of the new school an amount equal to 85% of the total amount which the schools that it replaced would have been allocated in their budget shares under regulation 16 (lump sums for primary and secondary schools) if the schools had not been discontinued.

(5) Where paragraph (4) applies, no single sum is to be included in the new school’s budget share under regulation 16.

(6) A local authority must, in accordance with this Chapter, determine a budget share for any maintained school in its area which is to be discontinued in the funding period up to the date when the school is discontinued.

(7) Where in the funding period, but excluding 1st April 2025, a maintained school is subject to a prescribed alteration as a result of a closure of a school, a local authority must redetermine the budget share of the enlarged school by adding to it the budget share of the school that has been discontinued.

(8) Where in the previous funding period, or on 1st April 2025, a maintained school is subject to a prescribed alteration as a result of a closure of a school during the previous funding period, or on 1st April 2025, a local authority must include in the budget share of the enlarged school an amount equal to 85% of the total amount which the school it has replaced would have been allocated under regulation 16, if the school had not been discontinued.

(9) Where in the funding period, but excluding 1st April 2025, a school has been established or is subject to a prescribed alteration as a result of the closure of a school, a local authority may add an amount to the budget share of the new or enlarged school to reflect all or part of the unspent budget share (including any surplus carried over from previous funding periods) of the closing school for the funding period in which it closes.

(10) A local authority may change the operation of this regulation where authorised to do so by the Secretary of State under regulation 42(1)(p).

Federated schools

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(1) Subject to paragraphs (2) and (3), where two or more maintained schools are federated under section 24 of the 2002 Act[^f00075], the local authority must determine a budget share for each school in accordance with Chapter 1 of Part 3 of these Regulations.

(2) After carrying out the determination in paragraph (1), the local authority must allocate a single budget share to the governing body of the federation and treat the schools as a single school for that purpose where—

(a) the governing body of the federation requests a single budget share; and

(b) the local authority considers the governing body is capable of managing a single budget share.

(3) Where the local authority allocates a single budget share to the governing body of a federation under paragraph (2), it must determine it by combining the budget shares of all the schools that form part of that federation.

(4) Where one or more schools are to leave a federation which has been allocated a single budget share under paragraph (2), the local authority must—

(a) determine the budget share for each of the leaving schools; and

(b) redetermine the budget share for the federation,

in accordance with Chapter 1 of Part 3.

Chapter 2 — Criteria taken into account – early years provision

Special arrangements for pupils in maintained nursery schools and nursery classes and for children receiving relevant early years provision and community early years provision

32

(1) Subject to the following paragraphs of this regulation, in determining—

(a) budget shares for nursery schools maintained by it;

(b) amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) amounts to be allocated in respect of community early years provision in schools maintained by it,

a local authority must take into account in its formula the predicted total number of hours of attendance of pupils or children.

(2) When further information about hours of attendance becomes available a local authority must—

(a) review the budget share for each nursery school maintained by it, the amount allocated in respect of each nursery class and the amount allocated in respect of community early years provision; and

(b) redetermine that budget share or amount allocated, as the case may be.

(3) When carrying out a review and redetermination under paragraph (2) the local authority must—

(a) in the case where the local authority decides to fund only funded early years provision, take into account—

(i) the predicted total number of hours of attendance of pupils in the nursery school or nursery class, and of children being provided with community early years provision, who will receive funded early years provision during the period (basing the calculation on the actual hours of such attendance in each of at least three sample weeks); or

(ii) the actual total number of hours of such attendance for the period; or

(b) in the case where the local authority decides to fund funded early years provision and early years provision in excess of funded early years provision, take into account—

(i) the predicted total number of hours of attendance of pupils in the nursery school or nursery class, and of children being provided with community early years provision, who will receive early years provision during the period (basing the calculation on the actual hours of such attendance in each of at least three sample weeks); or

(ii) the actual total number of hours of such attendance for the period.

(4) When further information about hours of attendance becomes available, a local authority must—

(a) review the amount allocated to each relevant early years provider; and

(b) redetermine the amount allocated.

(5) When carrying out a review and redetermination under paragraph (4) the local authority must take into account—

(a) the predicted total number of hours of attendance of children who will receive funded early years provision from the relevant early years provider during the period (basing the calculation on the actual hours of such attendance in each of at least three sample weeks); or

(b) the actual total numbers of hours of such attendance for the period.

(6) Within 28 days of making any redetermination under paragraph (2)(b) or (4)(b), the local authority must give notice of the redetermination and the date on which it will be implemented to the governing body of the school, or the relevant early years provider concerned.

(7) When making determinations and redeterminations under the preceding paragraphs of this regulation, a local authority may weight the predicted total number of hours of attendance of pupils or children according to the special educational needs of any such pupils or children.

(8) When determining—

(a) budget shares for nursery schools maintained by it;

(b) amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) amounts to be allocated in respect of community early years provision in schools maintained by it,

a local authority may take into account in its formula the number of places it wishes to fund in the school, class or provider (instead of the predicted total number of hours of attendance), where it has reserved those places for children with special educational needs or children in need.

(9) In paragraph (8), “children in need” means children within the area of a local authority in respect of whom that local authority must provide a range of services appropriate to their needs under section 17 of the 1989 Act (provision of services for children in need, their families and others)[^f00076].

33

(1) This regulation is subject to regulation 38 (12% early years discretionary funding cap).

(2) In determining—

(a) budget shares for nursery schools maintained by it;

(b) amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) amounts to be allocated in respect of community early years provision in schools maintained by it,

in respect of three and four year olds, a local authority must take into account in its formula one or more factors based on the incidence of social deprivation in pupils or children in its area.

(3) In determining—

(a) budget shares for nursery schools maintained by it;

(b) amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) amounts to be allocated in respect of community early years provision in schools maintained by it,

in respect of disadvantaged two year olds, working parent two year olds, and working parent under two year olds, a local authority may take into account in its formula one or more factors based on the incidence of social deprivation in pupils or children in its area.

Early years pupil premium

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(1) When determining—

(a) budget shares for nursery schools maintained by it;

(b) amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) amounts to be allocated in respect of community early years provision in schools maintained by it,

a local authority must include in those budget shares or amounts an amount equivalent to a rate of at least £1 multiplied by each hour of funded early years provision, up to a maximum of 570 hours, that a child eligible for early years pupil premium is to receive.

(2) A child is eligible for early years pupil premium if the child receives at least one hour of funded early years provision and either—

(a) the child’s parents are receiving one or more of the benefits in paragraph (3); or

(b) the child was a looked after child but is no longer so as a result of the making of an order mentioned in paragraph (4).

(3) The benefits are—

(a) universal credit, where the child’s parent has, in the relevant assessment period, earned income not exceeding the applicable amount;

(b) income support;

(d) income-related employment and support allowance;

(e) support under Part VI of the Immigration and Asylum Act 1999[^f00077];

(f) the guaranteed element of state pension credit;

(g) child tax credit (where the recipient is not also entitled to working tax credit and has an annual gross income of no more than £16,190); and

(h) working tax credit run-on[^f00078].

(4) The orders are—

(a) an adoption order within the meaning given by section 46(1) of the Adoption and Children Act 2002[^f00079];

(b) a special guardianship order within the meaning given by section 14A(1) of the 1989 Act[^f00080]; and

(c) a child arrangements order within the meaning given by section 8(1) of the 1989 Act[^f00081] which consists of, or includes, arrangements relating to either or both of the following—

(i) with whom the child is to live;

(ii) when the child is to live with any person.

(5) A child eligible for early years pupil premium continues to be so eligible notwithstanding any change in circumstances which would otherwise result in paragraph (2)(a) ceasing to be satisfied, or, in the case of paragraph (3)(a), the earned income of the child’s parent subsequently exceeding the applicable amount.

(6) When determining the budget shares and amounts referred to in paragraph (1), a local authority must include an amount equivalent to a rate of at least £1 multiplied by 570 hours (irrespective of how many hours of early years provision the child actually receives) for each looked after child who receives at least one hour of funded early years provision.

(7) Where, after the local authority has determined the budget shares or amounts referred to in paragraph (1), either—

(a) a child becomes eligible for early years pupil premium in accordance with paragraph (2); or

(b) a child who receives at least one hour of funded early years provision becomes a looked after child,

the local authority must redetermine the budget share or amount allocated to the early years provider concerned in accordance with paragraph (8).

(8) The amount to be included by a local authority under paragraph (7) is—

(a) in the case of child falling under paragraph (7)(a), an amount equivalent to a rate of at least £1 multiplied by each hour of funded early years provision that the child is to receive, up to a maximum of 570 hours; and

(b) in the case of a child falling under paragraph (7)(b), an amount equivalent to a rate of at least £1 multiplied by 570 hours.

(9) A local authority must use the same rate, which must be at least £1, for all determinations and redeterminations under this regulation.

(10) A local authority must not include an amount under this regulation in respect of a particular child that is more than an amount equivalent to the rate used by it for the purposes of this regulation multiplied by 570 hours.

(11) A local authority must ensure that any amount included in a budget share, or any amount allocated to a provider, under this regulation in respect of a looked after child, is used for the benefit of the child in accordance with—

(a) any directions or advice given by the local authority’s virtual schools head; and

(b) the child’s personal education plan.

(12) In this regulation—

(a) “child tax credit” means child tax credit under section 1(1)(a) of the Tax Credits Act 2002[^f00082];

(b) “earned income” means income for the purposes of Chapter 2 of Part 6 of the Universal Credit Regulations 2013[^f00083];

(d) “income-related employment and support allowance” means an income-related allowance under Part 1 of the Welfare Reform Act 2007[^f00085];

(e) “income support” means income support under section 124 of the Social Security Contributions and Benefits Act 1992[^f00086];

(f) “looked after child”, or in relation to a child, “looked after”, has the meaning given by—

(i) section 22(1) of the 1989 Act[^f00087]; or

(ii) section 74(1) of the Social Services and Well-being (Wales) Act 2014[^f00088];

(g) the relevant assessment period and the applicable amount are those referred to in the following sub-paragraphs as applicable—

(i) except where paragraphs (ii) or (iii) apply, where the parent had earned income which did not exceed £616.67 in the universal credit assessment period[^f00089] immediately preceding the date of the request for early years pupil premium (period 1)—

(aa) the relevant assessment period is period 1; and

(bb) the applicable amount is £616.67;

(ii) this paragraph applies where paragraph (i) does not because the applicable amount referred to in that paragraph is exceeded and there is a universal credit assessment period (period 2) immediately preceding period 1 referred to in that paragraph—

(aa) the relevant assessment period is the sum of period 1 and period 2 (SAP); and

(bb) the applicable amount is £1,233.34;

(iii) this paragraph applies where paragraph (ii) does not because the applicable amount referred to in that paragraph is exceeded and there is a universal credit assessment period (period 3) immediately preceding period 2 referred to in that paragraph—

(aa) the relevant assessment period is the period made up of SAP and period 3; and

(bb) the applicable amount is £1,850;

(h) where the parent referred to in paragraph (3)(a) is—

(i) a member of a couple who have jointly made a claim for, and are in receipt of, universal credit; or

(ii) a member of a couple but has claimed, and is in receipt of, universal credit as a single person,

references to applicable amounts in paragraphs (i) to (iii) of sub-paragraph (g) as applicable are to be read as references to the combined income of the couple;

(i) “parent” has the meaning given by section 2(2) of the Childcare Act 2006 (meaning of early childhood services);

(j) “personal education plan” has the same meaning as in regulation 5(1)(b)(ii) of the Care Planning, Placement and Case Review (England) Regulations 2010[^f00090];

(k) “state pension credit” means state pension credit under section 1 of the State Pension Credit Act 2002[^f00091], and the “guaranteed element” of state pension credit means the guarantee credit under section 2 of that Act;

(l) “universal credit” means universal credit under section 1 of the Welfare Reform Act 2012[^f00092];

(m) “virtual schools head” means a person appointed by a local authority under section 22(3B) of the 1989 Act[^f00093] for the purpose of discharging the local authority’s duty set out in section 22(3A) of that Act (duty to promote the educational achievement of children looked after by the local authority)[^f00094];

(n) “working tax credit” means working tax credit under section 1(1)(b) of the Tax Credits Act 2002.

Disability access fund

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(1) When determining—

(a) budget shares for nursery schools maintained by it;

(b) amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) amounts to be allocated in respect of community early years provision in schools maintained by it,

a local authority must, subject to paragraph (6), include in the budget share or amount to be allocated a single amount of at least £938 for each eligible child.

(2) Where a child becomes an eligible child after the local authority has determined the budget shares or amounts referred to in paragraph (1), the local authority must redetermine the budget share of, or amount allocated to, the early years provider concerned to include a single amount of at least £938 in respect of that child.

(3) A local authority must include the same amount under paragraphs (1) and (2) in respect of each eligible child.

(4) A local authority may only include an amount under paragraph (1) or (2) once in respect of any child.

(5) For the purposes of this regulation, a child is an eligible child if they are paid or entitled to disability living allowance by virtue of section 71 of the Social Security Contributions and Benefits Act 1992[^f00095] and they receive at least one hour of funded early years provision.

(6) This regulation does not apply in respect of early years provision which is funded under regulation 14 (places).

Differential funding

36

(1) For the purpose of determining (including redetermining)—

(a) budget shares for nursery schools maintained by it;

(b) amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) amounts to be allocated in respect of community early years provision in schools maintained by it,

a local authority may use factors or criteria which differentiate between different categories or descriptions of school or provider on the basis of unavoidable costs.

(2) In particular, a local authority may include an additional sum in the budget share of each nursery school maintained by it.

(3) In paragraph (1), “unavoidable costs” means costs which must be incurred by virtue of a statutory requirement.

Early years 96% requirement

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(1) In determining budget shares and amounts allocated in accordance with regulation 11(9), a local authority must comply with the formula set out in paragraph (2) separately for each relevant group.

(2) The formula is (A – B) / C is no less than 96% of D, where—

(a) A is the total of—

(i) all budget shares and amounts determined by the local authority under regulation 11(9) in respect of the relevant group;

(ii) any amount deducted by the local authority under paragraph 27 of Schedule 2 (early years contingency fund), which it intends to distribute to early years providers in respect of the relevant group; and

(iii) any amount of the local authority’s special educational needs inclusion fund which the local authority intends to distribute to early years providers in respect of the relevant group;

(b) B is the total of—

(i) where the calculation is being made in respect of three and four year olds, the maintained nursery school supplement;

(ii) any amount included in accordance with regulation 34(1) or (6) (early years pupil premium) in respect of the relevant group; and

(iii) any amount included in accordance with regulation 35(1) (disability access fund) in respect of the relevant group;

(c) C is the total number of hours of attendance of children in the relevant group predicted by the local authority under regulation 32(1) (special arrangements for early years pupils and children); and

(d) D is the hourly unit funding rate in relation to the relevant group, notified to the local authority in the early years block.

(3) A local authority may alter the operation of this regulation if authorised to do so by the Secretary of State under regulation 42(1)(q).

12% early years discretionary funding cap

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(1) A local authority must ensure that the total amount of discretionary funding in relation to each relevant group (calculated separately for each) does not exceed 12% of early years allocations in respect of that relevant group.

(2) For the purposes of paragraph (1), “discretionary funding” means funding in respect of a relevant group that is attributable to—

(a) the factors based on the incidence of social deprivation in pupils or children referred to in regulation 33 (social deprivation for early years); and

(b) the criteria set out in regulation 39(2) (additional criteria and disadvantaged two year olds requirement: early years) which by virtue of regulation 39(1) a local authority may take into account in its formula.

(3) For the purposes of paragraph (1), “early years allocations” means the total amount of the following budget shares and amounts allocated in relation to each of the relevant groups, determined by the local authority under regulation 11(9)—

(a) the budget shares for nursery schools maintained by the local authority;

(b) the amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) the amounts to be allocated in respect of community early years provision in schools maintained by it,

excluding any of the amounts specified in paragraph (4).

(4) The amounts are—

(a) where a calculation is made in respect of three and four year olds, the maintained nursery school supplement;

(b) any amount included in accordance with regulation 34(1) or (6) (early years pupil premium) in respect of the relevant group for which the calculation is being made;

(c) any amount included in accordance with regulation 35(1) (disability access fund) in respect of the relevant group for which the calculation is being made;

(d) any amount included in accordance with regulation 39(4) (additional criteria and disadvantaged two year olds requirement: early years).

Additional criteria and disadvantaged two year olds requirement: early years

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(1) Subject to regulation 38, in determining—

(a) budget shares for nursery schools maintained by it;

(b) amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) amounts to be allocated in respect of community early years provision in schools maintained by it,

a local authority may, in its formula, provide additional funding to the provider, taking into account any or all of the criteria specified in paragraph (2).

(2) The criteria which a local authority may take into account for the purposes of paragraph (1) are—

(a) the rurality or sparsity of the population of the area;

(b) pupils and children whose first language is not English;

(d) the estimated cost of sharing expertise with other early years providers;

(e) the degree to which providers offer flexible provision to parents.

(3) Paragraph (4) applies where a local authority’s per child amount for a provider in respect of disadvantaged two year olds is less than the local authority’s per child amount for the same provider in respect of working parent two year olds.

(4) In determining—

(a) budget shares for nursery schools maintained by it;

(b) amounts to be allocated in respect of nursery classes in schools maintained by it;

(d) amounts to be allocated in respect of community early years provision in schools maintained by it,

in respect of disadvantaged two year olds, a local authority must, in its formula, take into account a factor that has the effect of ensuring the per child amount a provider receives in respect of disadvantaged two year olds is equal to, or more than, the per child amount the same provider receives in respect of working parent two year olds.

(5) In this regulation, the “per child amount” is X/Y, where—

(a) X is a local authority’s notional budget share for a provider or notional amount to be allocated to a provider in respect of disadvantaged two year olds or working parent two year olds, as the case may be, which would be determined under regulation 11(9), but for the operation of paragraph (4);

(b) Y is the predicted total number of hours of attendance of pupils or children who are disadvantaged two year olds or working parent two year olds, as the case may be, used by the local authority to determine the provider’s notional budget share or notional amount to be allocated under regulation 11(9) in accordance with regulations 10(5) and 32(1).

(6) In calculating X, the local authority must deduct any amount of funding attributable to—

(a) regulation 34(1) (early years pupil premium);

(b) regulation 35(1) (disability access fund);

in respect of disadvantaged two year olds or working parent two year olds, as the case may be.

(7) A local authority may disregard the requirement under paragraph (4) if authorised to do so by the Secretary of State under regulation 42(1)(r).

Chapter 3 — Adjustments, correction of errors, and alternative arrangements authorised by the Secretary of State

Pupils permanently excluded from, or leaving, maintained schools

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(1) Where a pupil is permanently excluded from a school maintained by a local authority (other than a special school, a pupil referral unit, or a place which the local authority has reserved for children with special educational needs) (“the excluding school”) the local authority must redetermine the excluding school’s budget share in accordance with paragraph (2).

(2) The excluding school’s budget share must be reduced by A× (B/52) + C where—

(a) A is the amount determined by the local authority in accordance with Chapter 1 of this Part that would be attributable to a pupil of the same age and personal circumstances as the pupil in question at primary or secondary schools maintained by the local authority for the full funding period;

(b) B is either—

(i) the number of complete weeks remaining in the funding period calculated from the relevant date; or

(ii) where the permanent exclusion takes effect on or after 1st 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 before being admitted to another school with a different pupil age range, the number of complete weeks remaining in that school year calculated from the relevant date; and

(3) Where a pupil has been permanently excluded from the excluding school and is admitted to another school maintained by a local authority (other than a special school, a pupil referral unit, or to a place which the local authority has reserved for children with special educational needs) (“the admitting school”) in the funding period, the local authority must redetermine the admitting school’s budget share in accordance with paragraphs (4) and (5).

(4) The admitting school’s budget share must be increased by an amount which is not less than D × (E/F) where—

(a) D is the amount by which the local authority reduced the budget share of the excluding school, or would have reduced the budget share if that school had been maintained by the local authority, except that any reduction in the excluding school’s budget share made under a financial adjustment order must not be taken into account for these purposes;

(b) E is the number of complete weeks remaining in the funding period during which the pupil is a pupil at the admitting school; and

(5) In redetermining the admitting school’s budget share, the local authority may increase it by any amount up to the amount of the adjustment made to the excluding school’s budget share under a financial adjustment order.

(6) Where a permanently excluded pupil is subsequently reinstated by the governing body of the school, the school’s budget share must be increased by an amount which is no less than G × (H/I) where—

(a) G is the amount by which the local authority reduced the school’s budget share under paragraph (2);

(b) H is the number of complete weeks remaining in the funding period during which the pupil is reinstated; and

(7) Paragraphs (1) and (2) also apply where a pupil leaves a maintained school (other than a special school, a pupil referral unit, or a place which the local authority has reserved for children with special educational needs) for reasons other than permanent exclusion and is receiving education funded by a local authority other than at a school which is maintained by that local authority.

(8) For the purposes of paragraph (2)(a), the amount attributable to a pupil is the sum of the amounts determined in accordance with the local authority’s formula, by reference to pupil numbers rather than by reference to any other factor or criterion not dependent on pupil numbers, except that where a sixth form grant is payable in respect of a pupil, the amount attributable to that pupil in the funding period is £4,843.

(9) Where a pupil in respect of whom a pupil premium is payable has been permanently excluded from a school maintained by a local authority (“the excluding school”), the local authority must redetermine the excluding school’s budget share in accordance with paragraph (10).

(10) The excluding school’s budget share must be reduced by J × (K/52) where—

(a) J is the amount of the pupil premium allocated to the excluding school for the funding period in respect of that child; and

(b) K is either—

(i) the number of complete weeks remaining in the funding period calculated from the relevant date; or

(ii) where the permanent exclusion takes effect on or after 1st 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 before being admitted to another school with a different pupil age range, the number of complete weeks remaining in that school year calculated from the relevant date.

(11) Where a pupil in respect of whom a pupil premium is payable has been permanently excluded from a school maintained by a local authority and admitted to another school maintained by a local authority (“the admitting school”) in the funding period, the local authority must redetermine the budget share of the admitting school in accordance with paragraph (12).

(12) The admitting school’s budget share must be increased by an amount which is not less than L × (M/N) where—

(a) L is the amount by which the local authority reduced the budget share of the excluding school or would have reduced the budget share had that school been maintained by the local authority;

(b) M is the number of complete weeks remaining in the funding period during which the pupil is a pupil at the admitting school; and

(13) Where a permanently excluded pupil in respect of whom a pupil premium is payable is subsequently reinstated by the governing body of the school, the school’s budget share must be increased by an amount which is no less than O × (P/Q) where—

(a) O is the amount by which the local authority reduced the school’s budget share under paragraph (10);

(b) P is the number of complete weeks remaining in the funding period during which the pupil is reinstated; and

(14) Paragraphs (9) and (10) also apply where a pupil in respect of whom a pupil premium is payable leaves a maintained school for reasons other than permanent exclusion and is receiving education funded by a local authority other than at a school which is maintained by that local authority.

(15) For the purposes of this regulation—

(a) “the relevant date” is—

(i) the sixth school day following the date on which the pupil has been permanently excluded; or

(ii) where paragraphs (7) or (14) apply, the sixth school day following the date on which the pupil leaves the school; and

(b) “a financial adjustment order” means an order for the adjustment of a school’s budget share made under regulation 25(5)(b) of the School Discipline (Pupil Exclusions and Reviews) (England) Regulations 2012[^f00096] in respect of the exclusion of the pupil from the excluding school.

Correction of errors and changes in non-domestic rates

41

(1) A local authority may at any time during the funding period redetermine a maintained school’s budget share, or the amount allocated to a relevant early years provider, for the funding period or any previous funding period in order to correct an error in a determination or redetermination made under these Regulations or any previous regulations made under section 47 or 47ZA of the 1998 Act (“preceding regulations”), whether arising from a mistake as to the number of pupils at the school or otherwise, and any such redetermination will take effect in the next financial year following the funding period.

(2) In so far as any redetermination under paragraph (1) would require the amount that would otherwise have been the budget share of a school to be reduced, it may not be reduced to a figure which is lower than that which could have been allocated to that school under these Regulations or under the preceding regulations in force during the funding period in which the error occurred.

(3) A local authority may redetermine a school’s budget share to take into account any changes in that school’s non-domestic rate liability in relation to the funding period or any previous funding period.

Alternative arrangements approved by the Secretary of State

42

(1) Subject to paragraph (2), on application by a local authority, the Secretary of State may authorise the local authority to—

(a) disregard the limits referred to in paragraph 3 of Schedule 2 when deducting any expenditure referred to in regulation 8(4) (historic commitments);

(b) disregard the requirements in regulation 8(9) (deductions etc. of expenditure relating to deficit in the budget for a previous funding period);

(d) include additional factors or criteria in its formula under regulation 10(1) (formula for determining budget shares) where the nature of a school’s premises exceptionally gives rise to significant additional cost;

(e) include additional factors or criteria that the local authority proposes to include in its formula under regulation 10(3) (early years single funding formula);

(f) alter the operation of regulation 11(3) (additional costs - pupils with special educational needs);

(g) determine (including redetermine) budget shares of schools maintained by it;

(h) determine (including redetermine) amounts to be allocated in respect of nursery classes in schools maintained by it;

(i) determine (including redetermine) amounts to be allocated to relevant early years providers in its area;

(j) disregard regulation 13 (pupil numbers);

(k) alter the operation of regulation 14(3) or (5) (places in pupil referral units or in hospital education);

(l) alter the operation of regulation 21 (the sparsity factor) in respect of particular schools;

(m) alter the operation of regulation 27 (minimum per pupil amount) in respect of particular schools;

(n) alter any or all of the year group values D, E or F set out in regulation 27(4) for all the schools that are subject to the formula decided by the local authority under regulation 10(1);

(o) alter the operation of regulation 28 (minimum funding guarantee) and Schedule 3 in respect of particular schools;

(p) alter the operation of regulation 30 (new schools, merged schools and closing schools) in respect of particular schools;

(q) alter the operation of regulation 37 (early years 96% requirement);

(r) disregard the requirement in regulation 39(4) (requirement for a provider’s per child amount in respect of disadvantaged two year olds to be equal to, or more than, the per child amount in respect of working parent two year olds).

(2) The Secretary of State may authorise the matters in paragraph (1) to such extent as the Secretary of State may specify in accordance with arrangements approved in place of the arrangements provided for by these Regulations.

Part 4 — Schemes

Required content of schemes

43

A scheme prepared by a local authority under section 48(1) of the 1998 Act must deal with the matters connected with the financing of schools maintained by the local authority set out in Schedule 4 (contents of schemes).

Approval by the schools forum or the Secretary of State of proposals to revise schemes

44

(1) Where a local authority submits a copy of its proposals to revise its scheme to its schools forum for approval under paragraph 2A(3)(b) of Schedule 14 to the 1998 Act[^f00097], the members of the schools forum who represent schools maintained by the local authority may—

(a) approve the proposals;

(b) approve the proposals with modifications; or

(2) Where the schools forum approves the proposals to revise the scheme, it may specify the date on which the revised scheme is to come into force.

(3) The local authority may apply to the Secretary of State for approval of proposals submitted under paragraph 2A(3)(b) of Schedule 14 to the 1998 Act where—

(a) the schools forum refuses to approve the proposals, or approves them with modifications which are not acceptable to the local authority; or

(b) the local authority is not required to establish a schools forum for its area.

(4) The Secretary of State may—

(a) approve the proposals;

(b) approve the proposals with modifications; or

(5) When approving proposals, the Secretary of State may specify the date on which the revised scheme is to come into force.

(6) No revised scheme is to come into force unless approved by the schools forum or the Secretary of State in accordance with this regulation.

Publication of schemes

45

(1) A local authority—

(a) must publish its scheme on a website which is accessible to the general public; and

(b) may publish it elsewhere.

(2) Whenever a local authority revises the whole or part of its scheme, it must publish the scheme as revised on a website which is accessible to the general public by the date that the revisions are due to come into force, together with a statement that the revised scheme comes into force on that date.

Schedule 1 — CLASSES OR DESCRIPTIONS OF PLANNED EXPENDITURE PRESCRIBED FOR THE PURPOSES OF THE NON-SCHOOLS EDUCATION BUDGET OF A LOCAL AUTHORITY

Special educational provision

1

Expenditure on services provided by educational psychologists.

2

Expenditure in connection with the local authority’s functions under sections 22, 36, 37[^f00098] and 44 of the 2014 Act (which functions relate to the identification of children and young people with special educational needs and disabilities; the assessment of education, health and care needs; and the preparation and review of EHC plans).

3

Expenditure on monitoring the provision for pupils in schools for the purposes of disseminating good practice in relation to, and improving the quality of educational provision for, children with special educational needs.

4

Expenditure on collaboration with other statutory and voluntary bodies to provide support for children with special educational needs.

5

Expenditure in connection with—

(a) the provision of parent partnership services (that is, services provided under section 32 of the 2014 Act to give advice and information to parents of children with special educational needs), or other guidance and information to such parents which, in relation to pupils at a school maintained by the local authority, are in addition to the information usually provided by the governing bodies of such schools; and

(b) arrangements made by the local authority with a view to avoiding or resolving disagreements with the parents of children with special educational needs.

6

Expenditure on carrying out the local authority’s child protection functions under the 1989 Act, functions under section 175 of the 2002 Act[^f00099] (duties in relation to welfare of children), and other functions relating to child protection.

7

Expenditure incurred in entering into, or subsequently incurred under, an arrangement under section 31 of the Health Act 1999[^f00100] or regulations made under section 75 of the National Health Service Act 2006[^f00101] (arrangements between NHS bodies and local authorities).

Access to education

8

Expenditure in relation to planning and managing the supply of school places, including the local authority’s functions in relation to the establishment, alteration or discontinuance of schools under Part 2 of, and Schedule 2 to, the 2006 Act.

9

Expenditure in relation to the local authority’s functions under sections 508A to 509A[^f00102] of the 1996 Act.

10

Expenditure on the provision of support for students under regulations made under section 1(1) of the Education Act 1962[^f00103] and under section 22 of the Teaching and Higher Education Act 1998[^f00104].

11

Expenditure on discretionary grants paid under section 1(6) or 2 of the Education Act 1962 (awards for designated and other courses).

12

Expenditure on the payment of 16-19 Bursaries[^f00105].

Additional education and training for children, young persons and adults

13

Expenditure on the provision of education and training and of organised leisure time occupation, and other provision under sections 15ZA, 15ZC and 15B of the 1996 Act[^f00106].

14

Expenditure on the provision by the local authority, under sections 507A and 507B of the 1996 Act[^f00107] of recreation, social and physical training, educational leisure time activities and recreational leisure time activities.

Other functions

15

Expenditure in pursuance of a binding agreement, where the other party is a local authority, or the other parties include one or more local authorities, in relation to the operation of a facility provided partly, but not solely, for the use of schools.

16

Expenditure on making pension payments, other than in respect of staff employed in maintained schools.

17

Expenditure on insurance, other than for liability arising in connection with maintained schools or maintained school premises.

Schedule 2 — CLASSES OR DESCRIPTIONS OF PLANNED EXPENDITURE PRESCRIBED FOR THE PURPOSES OF THE SCHOOLS BUDGET OF A LOCAL AUTHORITY WHICH MAY BE DEDUCTED FROM IT TO DETERMINE THE INDIVIDUAL SCHOOLS BUDGET

Part 1 — Historic commitments

1

CERA incurred for purposes not falling within any other paragraph of this Schedule or Schedule 1.

2

Expenditure in respect of—

(a) prudential borrowing;

(b) termination of employment costs, where the schools forum has approved the charging of these costs to the schools budget for the funding period in which they were incurred and the revenue savings achieved by the termination of employment to which they relate are equal to or greater than the costs incurred;

(c) services (often known as combined budgets) funded partly from central expenditure and partly from other budgets of the local authority or contributions from other bodies, where the expenditure relates to classes or descriptions of expenditure falling outside those in this Schedule;

(d) special educational needs transport costs; and

(e) purposes not falling within any other paragraph of this Schedule, provided that the expenditure does not amount in total to more than 0.1% of the local authority’s schools budget,

which was approved by the schools forum or the Secretary of State before 1st April 2013.

3

Any deductions under paragraph 1 or 2(a) to (e) must not exceed the amount deducted under each of the corresponding paragraphs of Part 1 of Schedule 2 to the 2024 Regulations for the previous funding period.

Part 2 — Central schools expenditure

4

Expenditure due to a significant growth in pupil numbers as a result of the local authority’s duty under section 13(1) of the 1996 Act[^f00108] to secure that efficient primary education and secondary education are available to meet the needs of the population of its area, including expenditure resulting from the additional costs associated with establishing a new school.

5

Expenditure to be incurred due to a decline in pupil numbers in schools maintained by the local authority or in Academy schools where the most recent data provided by a local authority to the Secretary of State in accordance with regulation 3 of, and paragraphs 2 (forecasts of pupil numbers) and 4 (total capacity) of Schedule 1 to, the Information as to Provision of Education (England) Regulations 2016[^f00109] indicates that—

(a) growth in pupil numbers is expected in the three years starting with the school year beginning in the funding period; and

(b) additional funding is likely to be necessary to provide for that expected growth in pupil numbers.

6

Expenditure to be incurred before the opening of new schools to fund the appointment of staff and to enable the purchase of any goods and services necessary in order to admit pupils.

7

Expenditure to make provision for extra classes in order to comply with the School Admissions (Infant Class Sizes) (England) Regulations 2012[^f00110].

8

Expenditure on licences which are negotiated centrally by the Secretary of State for all publicly funded schools.

9

Expenditure on the operation of the system of admissions of pupils to schools (including expenditure incurred in carrying out consultations under section 88C(2) of the 1998 Act) and in relation to appeals.

10

Expenditure under section 16 (power to establish, assist and maintain primary or secondary schools) or 18 of the 1996 Act (power to arrange education at non-maintained schools)[^f00111] in making any grant or other payment in respect of fees or expenses (of whatever nature) which are payable in connection with the attendance of pupils at a school which is not maintained by any local authority.

11

Expenditure in relation to boarding fees for pupils in accordance with—

(a) sections 458[^f00112] or 514[^f00113] of the 1996 Act (in relation to boarding fees for pupils at a maintained school); and

(b) section 514(2) of the 1996 Act or section 10A[^f00114] of the 2010 Act (in relation to boarding fees for pupils at Academies or alternative provision Academies).

12

Expenditure in connection with the local authority’s functions under section 47A of the 1998 Act (establishment and maintenance of, and consultation with, schools forums).

13

Expenditure on pay arrears due to staff employed at maintained schools and other staff whose salaries are met from the schools budget, and expenditure on the costs of financing payment of such arrears, where the expenditure is not chargeable to a maintained school’s budget share under the terms of the local authority’s scheme.

Part 3 — Other central education expenditure

Asset management

14

Expenditure in connection with education functions in relation to the following areas of expenditure—

(a) management of the local authority’s capital programme including preparation and review of an asset management plan and negotiation and management of private finance transactions; and

(b) landlord responsibilities of the local authority (including in relation to land leased to Academy schools and alternative provision Academies),

which is not within the description of expenditure at paragraph 78 of this Schedule.

Strategic management

15

Expenditure on education functions related to—

(a) functions of the director of children’s services and the personal staff of the director;

(b) planning for the education service as a whole;

(c) authorisation and monitoring of expenditure which is not met from the budget shares of schools maintained by the local authority, and all related financial administration;

(d) the formulation and review of the methods of allocating resources to schools maintained by the local authority, and other bodies;

(e) internal audit and other tasks necessary for the discharge of the local authority’s chief finance officer’s responsibilities under section 151 of the Local Government Act 1972[^f00115] in so far as the responsibilities do not relate to maintained schools; and

(f) the preparation and review of plans involving collaboration with other local authority services or with public or voluntary bodies.

Other functions

16

Expenditure arising from the local authority’s functions under Chapter 2 of Part 6 of the 1996 Act (school attendance).

17

Expenditure in connection with the local authority’s functions in relation to the standing advisory council on religious education constituted by the local authority under section 390 of the 1996 Act[^f00116] or on the reconsideration and preparation of an agreed syllabus of religious education in accordance with Schedule 31 to the 1996 Act[^f00117].

18

Expenditure in connection with powers and duties performed under Part 2 of the Children and Young Persons Act 1933[^f00118] (enforcement of, and power to make byelaws in relation to, restrictions on the employment of children).

19

Expenditure in relation to consultation and functions preparatory to consultation with or by governing bodies, pupils, or with other interested bodies in connection with education functions, which is not within the description of expenditure at paragraph 68 of this Schedule.

20

Expenditure on the local authority’s functions in relation to the exclusion of pupils from schools.

21

Expenditure in relation to provision of information to or at the request of the Crown and the provision of other information which the local authority is under a duty to make available, which is not within the description of expenditure at paragraph 70 of this Schedule.

22

Expenditure on education functions related to revenue budget preparation, preparation of information on income and expenditure relating to education for incorporation into the local authority’s annual statement of accounts, and the external audit of grant claims and returns relating to education, that is not within the description of expenditure at paragraph 75 of this Schedule.

23

Expenditure in connection with the local authority’s duty under regulation 9A of the School Information (England) Regulations 2008[^f00119].

24

Expenditure in relation to 42.5% of the total employer contribution to the pension costs for—

(a) members of the teachers’ pension scheme to which the Teachers’ Pensions Regulations 2010[^f00120] apply; and

(b) members of the Teachers’ Pension Scheme 2015 established under regulation 2 of the Teachers’ Pension Scheme Regulations 2014[^f00121],

who are employed by the local authority but not employed to work in a maintained school under the direct management of the head teacher or governing body.

Part 4 — Central early years expenditure

25

Expenditure on early years provision, excluding expenditure—

(a) on such provision in a maintained school;

(b) on relevant early years provision;

(d) on excluded early years provision.

26

Expenditure on determining—

(a) the eligibility for free school meals of a pupil who is being provided with early years provision;

(b) the eligibility of a child for funded early years provision;

(d) the eligibility of a child for the disability access fund.

27

Expenditure on an early years contingency fund, for subsequent distribution to providers of funded early years provision, as a result of the attendance of an additional number of children.

Part 5 — Children and young people with high needs

28

Expenditure in respect of pupils with special educational needs in primary and secondary schools, excluding expenditure—

(a) in respect of pupils who have not attained compulsory school age in a maintained nursery school or a nursery class in a maintained school or an Academy school;

(b) in respect of pupils in places which the local authority has reserved for children with special educational needs; or

(c) which it would be reasonable to expect would be met from a maintained school’s budget share or the general annual grant paid to an Academy school by the Secretary of State.

29

Expenditure in respect of pupils—

(a) with special educational needs at special schools and special Academies; or

(b) in places at primary or secondary schools which the local authority has reserved for children with special educational needs,

where the expenditure cannot be met from the sum referred to in regulation 14(1) or (2) (special school places or places for pupils with special educational needs) or where it would be unreasonable to expect such expenditure to be met from a maintained school’s budget share or the general annual grant paid to an Academy school by the Secretary of State.

30

Expenditure in respect of persons provided with further education who are—

(a) aged under 19 and have special educational needs; or

(b) aged 19 years or older but under 25, subject to an EHC plan, and not attending a maintained school, an Academy school, an alternative provision Academy[^f00122], a non-maintained special school, or an independent school.

31

Expenditure on support services for—

(a) children who have attained compulsory school age who have an EHC plan;

(b) children who have special educational needs, who have attained compulsory school age, and who do not have an EHC plan;

(d) young people aged under 19, who have special educational needs, and who do not have an EHC plan; and

(e) people aged 19 years or older but under 25 who are subject to an EHC plan.

32

Expenditure—

(a) in respect of funding provision specified in an EHC plan of children who have not attained compulsory school age;

(b) on services for children who are not eligible for funded early years provision, who have not attained compulsory school age, and who have special educational needs, other than expenditure in respect of which sub-paragraph (a) applies;

(c) on services for children who are eligible for funded early years provision, who have not attained compulsory school age, and who have special educational needs, other than expenditure in respect of which sub-paragraph (a) applies.

33

Expenditure for the purposes of encouraging—

(a) collaboration between special schools and primary and secondary schools to enable children and young people with special educational needs to engage in activities at primary and secondary schools;

(b) the education of children and young people with special educational needs at primary and secondary schools; and

(c) the engagement of children and young people with special educational needs at primary and secondary schools in activities at the school with children and young people who do not have special educational needs,

in cases where the local authority considers it would be unreasonable for such expenditure to be met from a maintained school’s budget share or the general annual grant paid to an Academy school or alternative provision Academy by the Secretary of State.

34

Expenditure incurred in relation to, or in connection with, education provided otherwise than at a school or post-16-institution under section 19 of the 1996 Act (exceptional provision of education in pupil referral units or elsewhere) or under section 61 of the 2014 Act (special education provision otherwise than in schools, post-16 institutions etc)—

(a) where that expenditure is incurred otherwise than in relation to education at a pupil referral unit or alternative provision Academy; or

(b) where that expenditure is incurred in relation to education—

(i) at a pupil referral unit, if it cannot be met from the sum referred to in regulation 14(3); or

(ii) at an alternative provision Academy, if it would be unreasonable to expect that expenditure to be met from the general annual grant paid to that Academy by the Secretary of State.

35

Expenditure on the payment of fees in respect of children and young people with special educational needs—

(a) at independent schools or at special schools which are not maintained by a local authority, under section 16 of the 1996 Act or section 63 of the 2014 Act (fees for special educational provision at non-maintained schools and post-16 institutions); or

(b) at an institution outside England and Wales under section 320 of the 1996 Act (Provision outside England and Wales for certain children)[^f00123] or section 62 of the 2014 Act.

36

Expenditure on hospital education services, aside from expenditure on hospital education places referred to in regulation 14.

37

Expenditure on special schools and pupil referral units in financial difficulty.

38

Expenditure on costs in connection with private finance initiatives and the programme known as “Building Schools for the Future” at—

(a) maintained schools which provide secondary education falling within the description in section 2(2A) of the 1996 Act[^f00124];

(b) special schools;

(d) pupil referral units;

(e) alternative provision Academies; and

(f) 16 to 19 Academies[^f00125].

39

Expenditure on the provision of special medical support for individual children and young people in so far as such expenditure is not met by an NHS trust, NHS foundation trust, integrated care board or Local Health Board.

Part 6 — Items that may be removed from maintained schools’ budget shares – primary and secondary schools

40

Expenditure (other than expenditure referred to in Schedule 1 or any other paragraph of this Schedule) incurred on services relating to the education of children with behavioural difficulties, and on other activities for the purpose of avoiding the exclusion of pupils from schools.

41

Expenditure on determining the eligibility of a pupil for free school meals.

42

Expenditure on making payments to, or in providing a temporary replacement for, a person on maternity, paternity, neonatal care, shared parental or adoption leave.

43

Expenditure on making payments to, or in providing a temporary replacement for, any person who is—

(a) carrying out trade union duties or undergoing training under sections 168 and 168A of the Trade Union and Labour Relations (Consolidation) Act 1992[^f00126];

(b) taking part in trade union activities under section 170 of the Trade Union and Labour Relations (Consolidation) Act 1992;

(d) undertaking jury service;

(e) a safety representative under the Safety Representatives and Safety Committees Regulations 1977[^f00128];

(f) a representative of employee safety under the Health and Safety (Consultation with Employees) Regulations 1996[^f00129];

(g) an employee representative for the purposes of Chapter 2 of Part 4 of the Trade Union and Labour Relations (Consolidation) Act 1992, as defined in section 196 of that Act[^f00130] or regulation 13(3) of the Transfer of Undertakings (Protection of Employment) Regulations 2006[^f00131];

(h) taking time off for ante-natal care under section 55 of the Employment Rights Act 1996;

(i) undertaking duties as a member of the reserve forces as defined in section 1(2) of the Reserve Forces Act 1996[^f00132];

(j) suspended from working at a school; or

(k) appointed as a learning representative of a trade union, in order for that person to analyse training requirements or to provide or promote training opportunities, and to carry out consultative or preparatory work in connection with such functions.

44

Expenditure on making payments to, or in providing a temporary replacement for, a person who is seconded on a full-time basis for three months or more other than to a local authority or the governing body of a school.

45

Expenditure on making payments to, or in providing a temporary replacement for, persons who have been continuously absent from work because of illness for 21 days or more.

46

Expenditure on insurance in respect of liability arising in connection with schools and school premises.

47

Expenditure on a risk protection arrangement.

48

Expenditure on services to schools provided by museums and galleries.

49

Expenditure on library services.

50

Expenditure on licence fees or subscriptions paid on behalf of schools.

51

Expenditure on the schools specific contingency.

52

Expenditure for the purposes of—

(a) improving the performance of under-performing pupils from minority ethnic groups; or

(b) meeting the specific needs of bilingual pupils.

Part 7 — Items that may be removed from maintained schools’ budget shares – primary, secondary and special schools and pupil referral units

53

Expenditure incurred for the purposes of supporting the improvement of standards in maintained schools including expenditure in relation to the local authority’s functions under Part 4 of the 2006 Act (schools causing concern: England).

54

Expenditure in relation to the local authority’s functions under section 510 of the 1996 Act[^f00133] (provision and administration of clothing grants) and under regulations made under section 518(2) of the 1996 Act[^f00134].

55

Expenditure on the provision of tuition in music, or on other activities which provide opportunities for pupils to enhance their experience of music.

56

Expenditure incurred in enabling pupils to enhance their experience of the visual, creative and performing arts other than music.

57

Expenditure on outdoor education centres, but not including centres wholly or mainly for the provision of organised games, swimming or athletics.

58

Expenditure in relation to functions of the local authority under Part I of the Local Government Act 1999[^f00135] (best value) and the provision of advice to assist governing bodies in procuring goods and services with a view to securing continuous improvement in the way the functions of those governing bodies are exercised, having regard to a combination of economy, efficiency and effectiveness.

59

Expenditure in relation to authorisation and monitoring of expenditure in respect of schools which do not have delegated budgets, and all related financial administration.

60

Expenditure in relation to the local authority’s monitoring of compliance with the requirements of its financial scheme prepared under section 48 of the 1998 Act, and any other requirements in relation to the provision of community facilities by governing bodies under section 27 of the 2002 Act[^f00136].

61

Expenditure in relation to internal audit and other tasks necessary for the discharge of the local authority’s chief finance officer’s responsibilities under section 151 of the Local Government Act 1972 in so far as the responsibilities relate to maintained schools.

62

Expenditure in relation to the local authority’s functions under regulations made under section 44 of the 2002 Act[^f00137], in so far as the functions relate to maintained schools.

63

Expenditure in relation to investigations which the local authority carries out of employees, or potential employees, of the local authority, or of governing bodies of schools, or of persons otherwise engaged, or to be engaged, with or without remuneration to work at or for schools.

64

Expenditure in relation to functions of the local authority in relation to local government superannuation which it is not reasonably practicable for another person to carry out, and functions of the local authority in relation to the administration of teachers’ pensions.

65

Expenditure in relation to advice, in accordance with the local authority’s statutory functions, to governing bodies in relation to staff paid, or to be paid, to work under the direct management of the head teacher or governing body at a school, and advice in relation to the management of all such staff collectively at any individual school, including in particular advice with reference to alterations in remuneration, conditions of service and the collective composition and organisation of such staff.

66

Expenditure in relation to determination of conditions of service for non-teaching staff, and advice to schools on the grading of such staff.

67

Expenditure in relation to the local authority’s functions regarding the appointment or dismissal of employees in maintained schools.

68

Expenditure in relation to consultation and functions preparatory to consultation with persons employed at schools or their representatives.

69

Expenditure in relation to compliance with the local authority’s duties under the Health and Safety at Work etc. Act 1974[^f00138] and the relevant statutory provisions as defined in section 53(1) of that Act, in so far as compliance cannot reasonably be achieved through tasks delegated to the governing bodies of schools; but including expenditure incurred by the local authority in monitoring the performance of such tasks by governing bodies and, where necessary, giving them advice.

70

Expenditure in relation to provision of information to or at the request of the Crown and the provision of other information which the local authority is under a duty to make available, in so far as the information relates to maintained schools.

71

Expenditure in relation to the local authority’s functions pursuant to regulations made under section 12 of the 2002 Act[^f00139] (supervising authorities of companies formed by governing bodies).

72

Expenditure in relation to the local authority’s functions under the discrimination provisions of the Equality Act 2010[^f00140] in so far as compliance cannot reasonably be achieved through tasks delegated to the governing bodies of schools; but including expenditure incurred by the local authority in monitoring the performance of such tasks by governing bodies and, where necessary, giving them advice.

73

Expenditure on establishing and maintaining those electronic computer systems, including data storage, which are intended primarily to maintain linkage between local authorities and schools which they maintain.

74

Expenditure on the appointment of governors, the making of instruments of government, the payment of expenses to which governors are entitled and which are not payable from a maintained school’s budget share, and the provision of information to governors.

75

Expenditure on education functions related to revenue budget preparation, preparation of information on income and expenditure relating to education for incorporation into the local authority’s annual statement of accounts, and the external audit of grant claims and returns relating to education, in so far as those functions relate to maintained schools.

76

Expenditure on monitoring National Curriculum assessment arrangements required by orders made under section 87(3) of the 2002 Act.

77

Expenditure on retrospective membership of pension schemes and retrospective elections made in respect of pensions where it would not be appropriate to expect the governing body of the school to meet the cost from the school’s budget share.

78

Expenditure on landlord responsibilities in relation to maintained schools, and in particular—

(a) expenditure in pursuance of duties performed under the School Premises (England) Regulations 2012[^f00141]; and

(b) expenditure in connection with duties under the Control of Asbestos Regulations 2012[^f00142].

79

Expenditure in respect of the dismissal or premature retirement of, or for the purpose of securing the resignation of, or in respect of acts of discrimination against, any person except to the extent that these costs are chargeable to maintained schools’ budget shares or fall within paragraph 2(b) of this Schedule[^f00143].

80

Expenditure on examining attendance registers under the School Attendance (Pupil Registration) (England) Regulations 2024[^f00144].

Part 8 — Deficit from previous funding period

81

Expenditure in relation to any deficit in respect of the local authority’s schools budget from a previous funding period.

Schedule 3 — MINIMUM FUNDING GUARANTEE

1

(1) In this Schedule—

(a) references to the number of pupils—

(i) for the purposes of the previous funding period, exclude those funded by a sixth form grant; and

(ii) for the purposes of the funding period, exclude those funded by a sixth form grant;

(b) the “relevant number” of pupils for the previous funding period is the number of pupils at the school on 5th October 2023;

(d) the “minimum funding number” means a number determined by the local authority, between and including 0.995 and 1.000;

(e) the redetermined adjusted budget share for the previous funding period means a number calculated by the local authority, which must—

(i) exclude—

(aa) any amount allocated under regulation 14(2) (places reserved for children with special educational needs) of the 2024 Regulations;

(bb) any amount included under regulation 28 (sixth form funding) of the 2024 Regulations;

(cc) any amount included under regulation 40 (correction of errors and changes in non-domestic rates) of the 2024 Regulations;

(dd) the difference between (a) any amount allocated to the school under regulation 29(4) or (8) (new schools, merged schools and closing schools) of the 2024 Regulations, and (b) the single sum which the school would have received under regulation 16 (lump sums for primary and secondary schools) of the 2024 Regulations, had regulation 29(4) or (8) of the 2024 Regulations not applied;

(ee) any amount allocated to the school under regulation 24 (additional criteria etc which may be taken into account) of the 2024 Regulations where such amount has been deducted from the schools budget under Part 5 (children and young people with high needs) of Schedule 2;

(ff) any amount allocated to the school under regulation 10(3) (early years single funding formula) of the 2024 Regulations;

(gg) any amount included in respect of regulation 24(3)(a) (non-domestic rates) of the 2024 Regulations;

(hh) any amount allocated to the school under regulation 16(2) (primary lump sum) or, where regulation 30(4) or (8) applies, the amount allocated to the school under that regulation;

(ii) any amount allocated to the school under regulation 16(3) (secondary lump sum) or, where regulation 30(4) or (8) (applies, the amount allocated to the school under that regulation;

(jj) any amount allocated to the school under regulation 21(2) (primary population sparsity);

(kk) any amount allocated to the school under regulation 21(7) (secondary population sparsity);

(ll) any amount added to the school’s budget share under regulation 39 (pupils permanently excluded from, or leaving, maintained schools) of the 2024 Regulations;

(mm) any amount allocated to the school under regulation 23 (split sites factor) of the 2024 Regulations; and

(nn) any amount allocated to the school under regulation 24(3)(b) (private finance initiatives) of the 2024 Regulations.

(ii) include—

(aa) any amount deducted from the school’s budget share under regulation 11(5) or (6) (determination of allocation of budget shares etc. for the funding period), 22(2) (risk protection arrangement) or 39 (pupils permanently excluded from, or leaving, maintained schools) of the 2024 Regulations; and

(bb) any amount representing the allocation to the school in the previous funding period in respect of the teachers’ pay additional grant, the teachers’ pension employer contribution grant and the core schools budget grant[^f00145] as shown on the authority proforma tool[^f00146] for 2025–26 sent to the local authority by the Department for Education in December 2024;

(f) references to a redetermined adjusted budget share for the funding period include the effect of any alternative arrangements approved by the Secretary of State under regulation 42, but the local authority must—

(i) exclude—

(aa) any amount allocated under regulation 14(2) (places);

(bb) any amount included under regulation 29 (sixth form funding);

(cc) any amount included under regulation 41 (correction of errors and changes in non-domestic rates);

(dd) any amounts allocated under regulation 10(1) (formula for determining budget shares) which would have been within a class or description of the expenditure listed in Schedule 2 to the 2024 Regulations that the local authority deducted in the previous funding period;

(ee) any amount allocated to the school under regulation 10(3) (early years single funding formula);

(ff) any amount included in respect of regulation 25(3)(a) (non-domestic rates);

(gg) any amount included in respect of regulation 25(3)(b) (private finance initiatives);

(hh) any amount allocated to the school under regulation 16(2) (primary lump sum) (or, where regulation 30(4) or (8) applies, the amount allocated to the school under that regulation);

(ii) any amount allocated to the school under regulation 16(3) (secondary lump sum) (or, where regulation 30(4) or (8) applies, the amount allocated to the school under that regulation);

(jj) any amount allocated to the school under regulation 21(2);

(kk) any amount allocated to the school under regulation 21(7);

(ll) any amount added to the school’s budget share under regulation 40 (pupils permanently excluded from, or leaving, maintained schools); and

(mm) any amount allocated under regulation 24.

(ii) include any amount that is deducted from a school’s budget share under regulation 11(5) or (6) (applications to a schools forum or to the Secretary of State for authorisation to redetermine budgets), 22(2) (risk protection arrangement), 23(2) (energy scheme factor), 40 or 41.

(2) For the purposes of this Schedule—

(a) where a school opened during the previous funding period, its redetermined adjusted budget share for the previous funding period is the amount it would have been if the school had opened on 1st April 2024; and

(b) where a school opens during the funding period, its redetermined adjusted budget share for the funding period is the amount it would have been if the school had opened on 1st April 2025,

in both cases adjusted in accordance with paragraph 1(e) or (f), whichever is applicable.

2

Where (A/B) is less than (C/D) then the guaranteed funding level is (C/D) x B where—

A is the redetermined adjusted budget share, calculated by the local authority, for the funding period;

B is the relevant number of pupils in the funding period;

C is the redetermined adjusted budget share for the previous funding period multiplied by the minimum funding number; and

D is the relevant number of pupils in the previous funding period.

3

Where a new school opens during the funding period and is a replacement for two or more schools being discontinued during the funding period, its guaranteed funding level must be calculated in accordance with paragraph 2, subject to paragraph 4.

4

In calculating the guaranteed level of funding under paragraph 3 the relevant number of pupils in the previous funding period under paragraph 1(1)(b) is the sum of the relevant number of pupils in the discontinued schools on 5th October 2023.

5

In calculating the redetermined adjusted budget share for the previous funding period, the local authority may exclude any amounts allocated pursuant to regulation 42(1)(d) (exceptional premises costs) if it also excludes the amount from the redetermined adjusted budget share calculated for the funding period.

Schedule 4 — CONTENTS OF SCHEMES

1

The carrying forward from one funding period to another of surpluses and deficits arising in relation to schools’ budget shares.

2

Amounts which may be charged against schools’ budget shares.

3

Amounts received by schools which may be retained by their governing bodies and the purposes for which such amounts may be used.

4

The imposition, by or under the scheme, of conditions which schools must comply with in relation to the management of their delegated budgets, and of sums made available to governing bodies by the local authority which do not form part of delegated budgets, including conditions prescribing financial controls and procedures.

5

Terms on which the local authority provides services and facilities for schools maintained by it.

6

The payment of interest by or to the local authority.

7

The times at which amounts equal in total to the school’s budget share are to be made available to governing bodies and the proportion of the budget share to be made available at each such time.

8

The virement between budget heads within the delegated budget.

9

Circumstances in which a local authority may delegate to the governing body the power to spend any part of the local authority’s non-schools education budget or schools budget in addition to those in section 49(4)(a) to (c) of the 1998 Act[^f00147].

10

The use of delegated budgets and of sums made available to a governing body by the local authority which do not form part of delegated budgets.

11

Borrowing by governing bodies.

12

The banking arrangements that may be made by governing bodies.

13

A statement as to the personal liability of governors in respect of schools’ budget shares having regard to section 50(7) of the 1998 Act.

14

A statement as to the allowances payable to governors of a school which does not have a delegated budget in accordance with the scheme made by the local authority for the purposes of section 519 of the 1996 Act[^f00148].

15

The keeping of a register of any business interests of the governors and the head teacher.

16

The provision of information by and to the governing body.

17

The maintenance of inventories of assets.

18

Plans of a governing body’s expenditure.

19

A statement as to the taxation of sums paid or received by a governing body.

20

Insurance.

21

The use of delegated budgets by governing bodies to satisfy the local authority’s duties imposed by or under the Health and Safety at Work etc. Act 1974.

22

The provision of legal advice to a governing body.

23

Funding for child protection issues.

24

How complaints by persons working at a school or by school governors about financial management or financial propriety at the school will be dealt with and to whom such complaints should be made.

25

Expenditure incurred by a governing body in the exercise of the power conferred by section 27 of the 2002 Act.

Signed

Signed on behalf of the Secretary of State

Catherine McKinnell — Minister of State — Department for Education — 16th January 2025

Explanatory note

(This note is not part of the Regulations)

Explanatory Note

These Regulations make provision for local authorities’ financial arrangements in relation to the funding of maintained schools and providers of funded early years provision in England, for the financial year 2025-2026.

Part 1 revokes the School and Early Years Finance (England) Regulations 2023 (S.I. 2023/59) with effect from 1st April 2025 (regulation 2). The School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024 (S.I. 2024/66) (“the 2024 Regulations”) remain in force. Regulation 3 amends references to the 2024 Regulations in the Schools Forums (England) Regulations 2012 (S.I. 2012/2261).

Part 2 defines the non-schools education budget (regulation 4 and Schedule 1) and sets requirements for the initial determination of the schools budget (regulation 5), which is defined in regulation 6 and Schedule 2. It lists expenditure that is excluded from the non-schools education budget and the schools budget (regulation 7) and makes provision for central expenditure and the individual schools budget (regulation 8 and Schedule 2). It further requires local authorities to determine budget shares for schools maintained by them and amounts to be allocated in respect of early years provision in their areas, in accordance with the appropriate formulae (regulations 10 and 11).

Chapter 1 of Part 3 deals with the determination of budget shares for schools. Regulations 13 and 15 to 24 make provision for specific factors that the local authority must include in their local funding formulae for certain schools. The allowable ranges for these amounts or sums are set in relation to the distance between their respective value in the national funding formula and, for all mandatory factors other than the split site factor, the value in the local authority’s funding formula in the previous funding period (financial year 2024 – 2025). Regulation 25 specifies additional criteria which may, or must, be taken into account in setting budgets for certain schools. The Regulations also impose a minimum per pupil amount (regulation 27) and a minimum funding guarantee for schools (regulation 28 and Schedule 3). Regulations 29 to 31 make provision for calculation of budgets in relation to specific types of school or specific circumstances.

Chapter 2 of Part 3 deals with early years provision and requires local authorities’ formulae to take into account the predicted hours of attendance (with provision for review and redetermination on the basis of information about actual hours of attendance) (regulation 32) and to include one or more social deprivation factors (regulation 33). Regulations 34 and 35 provide for additional amounts to be included in respect of children in specified circumstances (regulation 34) and disabled children (regulation 35). There is a requirement to pass 96% of funding to early years providers (regulation 37) and a 12% limit on the amount of funding that may be attributable to the discretionary (supplementary) part of the early years formulae (regulation 38).

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The School and Early Years Finance (England) Regulations 2025

Federated schools

31

Chapter 2 — Criteria taken into account – early years provision

Special arrangements for pupils in maintained nursery schools and nursery classes and for children receiving relevant early years provision and community early years provision

32

Social deprivation for early years

33

Early years pupil premium

34

Disability access fund

35

Differential funding

36

Early years 96% requirement

37

12% early years discretionary funding cap

38

Additional criteria and disadvantaged two year olds requirement: early years

39

Chapter 3 — Adjustments, correction of errors, and alternative arrangements authorised by the Secretary of State

Pupils permanently excluded from, or leaving, maintained schools

40

Correction of errors and changes in non-domestic rates

41

Alternative arrangements approved by the Secretary of State

42

Part 4 — Schemes

Required content of schemes

43

Approval by the schools forum or the Secretary of State of proposals to revise schemes

44

Publication of schemes

45

Schedule 1 — CLASSES OR DESCRIPTIONS OF PLANNED EXPENDITURE PRESCRIBED FOR THE PURPOSES OF THE NON-SCHOOLS EDUCATION BUDGET OF A LOCAL AUTHORITY

Special educational provision

1

2

3

4

5

6

7

Access to education

8

9

10

11

12

Additional education and training for children, young persons and adults

13

14

Other functions

15

16

17

Schedule 2 — CLASSES OR DESCRIPTIONS OF PLANNED EXPENDITURE PRESCRIBED FOR THE PURPOSES OF THE SCHOOLS BUDGET OF A LOCAL AUTHORITY WHICH MAY BE DEDUCTED FROM IT TO DETERMINE THE INDIVIDUAL SCHOOLS BUDGET

Part 1 — Historic commitments

1

2

3

Part 2 — Central schools expenditure

4

5

6

7

8

9

10

11

12

13

Part 3 — Other central education expenditure

Asset management

14

Strategic management

15

Other functions

16

17