The School and Early Years Finance (England) Regulations 2025

• (a) “all-through schools” means those primary or secondary schools which pupils may join at an age between three and five years and remain until an age between 16 and 19 years⁷⁰;

• (b) “closest compatible school” means, in respect of a pupil, the school meeting the description in paragraph (2), or as the case may be, paragraph (7), which is the closest by road from the home postcode of the pupil and which admits pupils of the pupil’s age and sex, other than—

• (i) a special school;

• (ii) an alternative provision Academy;

• (iii) a pupil referral unit; or

• (iv) an independent school which is not an Academy school;

• (c) “second closest compatible school” means, in respect of a pupil, the school which is the second closest by road from the home postcode of the pupil and which admits pupils of the pupil’s age and sex, other than—

• (i) a selective school;

• (ii) a special school;

• (iii) an alternative provision Academy;

• (iv) a pupil referral unit; or

• (v) an independent school which is not an Academy school; and

• (d) “selective school” means a school where all the pupils in the school are selected by ability or by aptitude.

Risk protection arrangement

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• (1) Paragraph (2) applies if a local authority has not removed any expenditure referred to in paragraph 47 of Schedule 2 from a school’s budget share under regulation 11(5).

• (2) In determining (including redetermining) budget shares for schools maintained by it, a local authority must include—

• (a) a factor which enables the local authority to deduct the amount (£27 x Z/365) per pupil from the budget share of a primary or secondary school (other than a special school or pupil referral unit) if the governing body of that school has entered into a risk protection arrangement with the Secretary of State which is still in force, or enters into such an arrangement which commences on or after 1st April 2025; and

• (b) a factor which enables the local authority to deduct the amount (£27 x Z/365) per place from the budget share of a special school or pupil referral unit if—

• (i) the governing body of that school; or

• (ii) in the case of a pupil referral unit, the local authority,

has entered into a risk protection arrangement with the Secretary of State which is still in force, or enters into such an arrangement which commences on or after 1st April 2025.

• (3) In paragraph (2)(a) and (b), Z is the number of days that the school or pupil referral unit is subject to a risk protection arrangement with the Secretary of State, beginning with 1st April 2025, or on the day on which that arrangement commences, if later, and ending with 31st March 2026.

Energy scheme factor

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• (1) Paragraph (2) applies where—

• (a) the governing body of a maintained school has entered into an agreement with the Secretary of State for the supply of energy to that school, and

• (b) the governing body of that school has failed to pay, by the required date, an undisputed invoice for the supply of energy to the school.

• (2) In determining (including redetermining) budget shares for schools maintained by it, a local authority must include a factor which enables it to deduct from the budget share of a school the amount notified to the local authority by the Secretary of State in respect of an undisputed invoice for the supply of energy to the school.

• (3) In this regulation—

• (a) “supply of energy” means the supply of gas, electricity or both gas and electricity;

• (b) “undisputed invoice” means an invoice for energy where—

• (i) the governing body of the school does not dispute that the payment is due;

• (ii) the governing body of the school accepts that the payment is due after entering into a form of alternative dispute resolution in respect of that invoice; or

• (iii) a court in the United Kingdom has found that the payment is due;

• (c) the “required date” is the final day of the period of—

• (i) three months beginning with the due date for payment, where paragraph (3)(b)(i) applies;

• (ii) one month beginning with the date on which the governing body accepts that the payment is due, where paragraph (3)(b)(ii) applies;

• (iii) one month beginning with the date of the court finding, where paragraph (3)(b)(iii) applies, subject to paragraph (4).

• (4) Where the governing body of a school appeals against the finding of a court referred to in paragraph (3)(b)(iii)—

• (a) the invoice becomes undisputed where the finding on appeal is that the payment is due, and

• (b) the required date is the final day of the period of one month beginning with—

• (i) the date of the finding on appeal that the payment is due, or

• (ii) the date on which the governing body withdraws its appeal.

Split sites factor

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• (1) In determining budget shares for primary and secondary schools (other than special schools, pupil referral units and nursery schools), excluding any amount to be allocated in respect of nursery classes or community early years provision in those schools, a local authority must determine additional funding for each school with a split site by calculating, for each of the school’s eligible sites other than the main site—

• (a) a basic eligibility factor; and

• (b) a distance funding factor,

and adding the two factors together.

• (2) The basic eligibility factor referred to in paragraph (1)(a) is a single per site sum determined by the local authority and applied to each of the school’s eligible sites up to a maximum of three sites.

• (3) The basic eligibility factor determined under paragraph (2) must be no more than 2.5% above or below the amount which would be produced by multiplying the basic eligibility factor set under the national funding formula⁷¹ (which for the financial year beginning with 1st April 2025 is £54,000) by the ACA applying in relation to the local authority in question, except where the local authority is a fringe authority, in which case the ACA used as the multiplier is the lowest ACA applying in relation to that local authority.

• (4) The distance funding factor referred to in paragraph (1)(b) must be calculated for each eligible site which is more than 100 metres by road from the main site, up to a maximum of three sites, according to the formula A x B where—

• (a) A is the distance weighting for each eligible site—

• (i) where a site is 500 metres or more by road from the main site, A = 1; and

• (ii) where a site is less than 500 metres by road from the main site, A is calculated according to the formula 1 - ((500 - C) / 400) where C is the distance by road in metres from the main site; and

• (b) B is a single per site amount determined by the local authority.

• (5) The amount determined under paragraph (4)(b) must be no more than 2.5% above or below the amount which would be produced by multiplying the distance funding factor set under the national funding formula⁷² (which for the financial year beginning with 1st April 2025 is £27,000) by the ACA applying in relation to that local authority, except where the local authority is a fringe authority, in which case the ACA used as the multiplier is the lowest ACA applying in relation to that local authority.

• (6) Where a school has more than three split sites, the calculation of the distance funding factor in respect of each site must be based on the distance from the main site of each of the three sites which are furthest from the main site.

• (7) For the purposes of this regulation—

• (a) a school has an eligible split site if it has at least one site other than the main site which—

• (i) is separated from the school’s main site by a road or railway and can only be accessed by crossing or walking alongside the road or railway; and

• (ii) has a building on it which is owned, controlled or maintained by the school and is used, during the majority of school hours, for the education of 5- to 16-year old pupils attending the mainstream school; and

• (b) “road” means a road to which the public has 24-hour vehicular access.

Additional criteria: schools

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• (1) In order to determine the budget shares for schools maintained by it (other than special schools, pupil referral units and nursery schools), excluding any amount to be allocated in respect of nursery classes or community early years provision in those schools, a local authority—

• (a) must comply with the requirements for minimum per pupil funding, set out in regulation 27; and

• (b) may take into account in its formula either or both of the criteria specified in paragraph (3).

• (2) For the purposes of complying with the requirement mentioned in paragraph (1)(a), the date for ascertaining pupil numbers or proportions is 3rd October 2024.

• (3) In determining a formula under this regulation, a local authority may also take into account—

• (a) non-domestic rates payable in respect of the premises of each school;

• (b) payments in relation to a private finance initiative,

which may be determined on the basis of actual or estimated cost.

• (4) Subject to paragraphs (6) and (7), where a school would otherwise receive a greater amount of redetermined adjusted budget share per pupil than it did in the previous funding period, the local authority may do one or both of the following—

• (a) determine a percentage beyond which the per pupil amount of redetermined adjusted budget may not increase;

• (b) determine a percentage by which the amount that the per pupil redetermined adjusted budget share would otherwise increase by will be reduced.

• (5) Schedule 3 (minimum funding guarantee) applies for the purposes of interpreting the terms used in paragraph (4).

• (6) Where the local authority decides to take one or both of the actions described in paragraph (4)(a) and (b)—

• (a) this must be applied to the budget shares of all schools in the local authority’s area; and

• (b) the local authority must ensure that no school in the area receives a budget share that is less than the amount it would receive under regulation 27 (minimum per pupil amount).

• (7) Paragraph (4) does not apply to the determination of budget shares for—

• (a) special schools;

• (b) pupil referral units;

• (c) nursery schools; and

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

Requirements relating to the calculation of local authority funding formula

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• (1) In determining budget shares for primary and secondary schools (other than special schools, pupil referral units and nursery schools), excluding any amount to be allocated in respect of nursery classes or community early years provision in those schools, a local authority must set single per pupil amounts or, as the case may be, single sums or lump sums for the factors referred to in regulations 13 (pupil numbers), 15 (social deprivation - primary and secondary schools), 16 (lump sums for primary and secondary schools), 17 (low prior attainment factor), 18 (English as an additional language), 19 (mobility factor) and 21 (the sparsity factor) as follows—

• (a) A is the value of the factor in the local authority’s funding formula (the “local factor value”) for the previous funding period;

• (b) B is the national funding formula factor value for the previous funding period⁷³, adjusted by the local authority’s ACA, except where a local authority is a fringe authority, where B is the national funding formula factor value for the previous funding period, adjusted by the lowest ACA applied within that local authority’s area;

• (c) C is the absolute value of A – B;

• (d) D is the local factor value for this funding period;

• (e) E is the national funding formula factor value in this funding period⁷⁴, adjusted by the local authority’s ACA, except where a local authority is a fringe authority, where E is the national funding formula factor in this funding period, adjusted by the lowest ACA applied within that local authority’s area; and

• (f) F is the absolute value of D – E.

• (2) The local authority must set D so that—

• (a) F is equal to or smaller than (C x 0.9); or

• (b) D is—

• (i) equal to or greater than (E x 0.975); and

• (ii) equal to or smaller than (E x 1.025).

• (3) If A is smaller than B, the local authority must set D to be equal to, or smaller than E x 1.025.

• (4) If A is greater than B, the local authority must set D to be equal to, or greater than E x 0.975.

• (5) In this regulation, “the absolute value” of a number means that number expressed as a positive number.

Minimum per pupil amount

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• (1) Where the per pupil amount for a school (other than a special school, pupil referral unit or nursery school) is less than the minimum per pupil amount, the local authority must determine (including redetermine) that school’s budget share, excluding any amount to be allocated in respect of nursery classes or community early years provision, based on the minimum per pupil amount.

• (2) In this regulation, the per pupil amount for a school is X/Y, where—

• (a) X is the notional budget share that the school would receive under the formula referred to in regulation 10(1), but for the operation of this regulation; and

• (b) Y is the number of pupils at the school.

• (3) In calculating X, the local authority must—

• (a) deduct any premises factor allocation from the amount;

• (b) add any amount that is deducted 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 (pupils permanently excluded from, or leaving, maintained schools) or 41(1) (correction of errors);

• (c) deduct any amount that is added under regulation 40 or 41(1).

• (4) The minimum per pupil amount for a school is—

$$A × D + B × E + C × F G$ where— A is the number of primary-age year groups in the school; B is the number of key stage 3 year groups in the school; C is the number of key stage 4 year groups in the school; D is the primary-age year group value of £4,955; E is the key stage 3 year group value of £6,221; F is the key stage 4 year group value of £6,831; G is the total number of year groups in the school.$

• (5) Where authorised to do so by the Secretary of State under regulation 42(1)(m) or (n), as the case may be, a local authority may—

• (a) vary the year group values D, E or F set out in paragraph (4) for all the schools that are subject to the formula decided by the local authority under regulation 10(1);

• (b) alter the operation of this regulation in respect of particular schools.

Minimum funding guarantee

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• (1) Except as provided for in this regulation and excluding any amount to be allocated in respect of nursery classes or community early years provision, in determining (including redetermining) budget shares for primary and secondary schools maintained by it (other than special schools, pupil referral units and nursery schools), a local authority must ensure that an amount equal to the guaranteed funding level is included, calculated in accordance with Schedule 3 (minimum funding guarantee).

• (2) For the purpose of determining budget shares, paragraph (1) does not apply to any school opening during the funding period, except in the circumstances set out in paragraph 3 of Schedule 3 (guaranteed level of funding for a new school replacing two or more schools discontinued during the funding period).

• (3) Where authorised to do so by the Secretary of State under regulation 42(1)(o), a local authority may alter the operation of this regulation and Schedule 3 in determining (including redetermining) budget shares.

Sixth form funding

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• (1) A local authority must include in the budget shares of maintained secondary schools and special schools an amount equal to any sum notified to the local authority by the Secretary of State as being the allocation of sixth form grant for that school.

• (2) A local authority must redetermine the budget share of a secondary school before the end of the funding period where the local authority receives a written notification from the Secretary of State of a revised allocation in respect of the sum referred to in paragraph (1).

New schools, merged schools and closing schools

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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 Act⁷⁵, 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

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• (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;

• (c) amounts to be allocated to relevant early years providers in its area; and

• (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;

• (c) amounts to be allocated to relevant early years providers in its area;

• (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)⁷⁶.

Social deprivation for early years

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• (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;

• (c) amounts to be allocated to relevant early years providers in its area; and

• (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;

• (c) amounts to be allocated to relevant early years providers in its area; and

• (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;

• (c) amounts to be allocated to relevant early years providers in its area;

• (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;

• (c) income-based jobseeker’s allowance;

• (d) income-related employment and support allowance;

• (e) support under Part VI of the Immigration and Asylum Act 1999⁷⁷;

• (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-on⁷⁸.

• (4) The orders are—

• (a) an adoption order within the meaning given by section 46(1) of the Adoption and Children Act 2002⁷⁹;

• (b) a special guardianship order within the meaning given by section 14A(1) of the 1989 Act⁸⁰; and

• (c) a child arrangements order within the meaning given by section 8(1) of the 1989 Act⁸¹ 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 2002⁸²;

• (b) “earned income” means income for the purposes of Chapter 2 of Part 6 of the Universal Credit Regulations 2013⁸³;

• (c) “income-based jobseeker’s allowance” has the meaning given by section 1(4) of the Jobseekers Act 1995⁸⁴;

• (d) “income-related employment and support allowance” means an income-related allowance under Part 1 of the Welfare Reform Act 2007⁸⁵;

• (e) “income support” means income support under section 124 of the Social Security Contributions and Benefits Act 1992⁸⁶;

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

• (i) section 22(1) of the 1989 Act⁸⁷; or

• (ii) section 74(1) of the Social Services and Well-being (Wales) Act 2014⁸⁸;

• (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 period⁸⁹ 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 2010⁹⁰;

• (k) “state pension credit” means state pension credit under section 1 of the State Pension Credit Act 2002⁹¹, 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 2012⁹²;

• (m) “virtual schools head” means a person appointed by a local authority under section 22(3B) of the 1989 Act⁹³ 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)⁹⁴;

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

Disability access fund

35

• (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;

• (c) amounts to be allocated to relevant early years providers in its area;

• (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 1992⁹⁵ 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;

• (c) amounts to be allocated to relevant early years providers in its area; and

• (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

37

• (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

38

• (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;

• (c) the amounts to be allocated to relevant early years providers in its area; and

• (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

39

• (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;

• (c) amounts to be allocated to relevant early years providers in its area;

• (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;

• (c) the qualifications of staff;

• (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;

• (c) amounts to be allocated to relevant early years providers in its area;

• (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);

• (c) regulation 36(1) (differential funding),

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

40

• (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

• (c) C is the amount of the adjustment made to the school’s budget share under a financial adjustment order.

• (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

• (c) F is the number of complete weeks remaining in the funding period calculated from the relevant date.

• (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

• (c) I is the number of complete weeks remaining in the funding period calculated from the relevant date.

• (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

• (c) N is the number of complete weeks remaining in the funding period calculated from the relevant date.

• (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

• (c) Q is the number of complete weeks remaining in the funding period calculated from the relevant date.

• (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 2012⁹⁶ 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);

• (c) deduct any expenditure referred to in regulation 8(14)(a) (expenditure falling outside Schedule 2);

• (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 Act⁹⁷, 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

• (c) refuse to approve the proposals.

• (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

• (c) refuse to approve the proposals.

• (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, 37⁹⁸ 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 Act⁹⁹ (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 1999¹⁰⁰ or regulations made under section 75 of the National Health Service Act 2006¹⁰¹ (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 509A¹⁰² of the 1996 Act.

10

Expenditure on the provision of support for students under regulations made under section 1(1) of the Education Act 1962¹⁰³ and under section 22 of the Teaching and Higher Education Act 1998¹⁰⁴.

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 Bursaries¹⁰⁵.

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 Act¹⁰⁶.

14

Expenditure on the provision by the local authority, under sections 507A and 507B of the 1996 Act¹⁰⁷ 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 Act¹⁰⁸ 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 2016¹⁰⁹ 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 2012¹¹⁰.

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)¹¹¹ 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 458¹¹² or 514¹¹³ 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 10A¹¹⁴ 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 1972¹¹⁵ 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 Act¹¹⁶ or on the reconsideration and preparation of an agreed syllabus of religious education in accordance with Schedule 31 to the 1996 Act¹¹⁷.

18

Expenditure in connection with powers and duties performed under Part 2 of the Children and Young Persons Act 1933¹¹⁸ (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