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The School Funding, Budget Statements and Outturn Statements (Wales) Regulations 2026

Type Welsh-Statutory-Instrument

Publication 2026-03-04

State In force

Jurisdiction Wales

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Made: 4 March 2026

Coming into force in accordance with regulation 1(2)

The Welsh Ministers make these Regulations, in exercise of the powers conferred by sections 45A(1), (1A), (2), (3), (4) and (4A)[^f00001], 45AC[^f00002], 47(1), (2) and (3)[^f00003], 48(1) and (2)[^f00004], 49(2) and (2A)[^f00005], 52(1), (2), (3) and (4)[^f00006] and 138(7)[^f00007] and (8) of, and paragraphs 1(7) and 2B of Schedule 14[^f00008] to, the School Standards and Framework Act 1998[^f00009], and by sections 24(3) and (4)[^f00010] and 210(7)[^f00011] of the Education Act 2002[^f00012], and now exercisable by them.

Part 1 — General

Title, coming into force and application

1

(1) The title of these Regulations is the School Funding, Budget Statements and Outturn Statements (Wales) Regulations 2026.

(2) These Regulations come into force on 1 February 2027 except for regulation 2(2) which comes into force on 1 April 2026.

(3) These Regulations apply in relation to financial years beginning on or after 1 April 2027.

(4) These Regulations apply in relation to Wales.

Revocation and consequential amendments

2

(1) The Regulations set out in the table of revocations in Schedule 1 are revoked to the extent set out in that Schedule.

(2) The School Funding (Wales) Regulations 2010[^f00013] are amended as follows—

(a) in regulation 3(1), at the appropriate places in alphabetical order insert—

“the 2022 Act” (“Deddf 2022”) means the Tertiary Education and Research (Wales) Act 2022[^f00014];

“the Commission” (“y Comisiwn”) means the Commission for Tertiary Education and Research established under section 1 of the 2022 Act;

(b) in regulation 13(2), for “section 36 of the 2000 Act” substitute “section 101 of the 2022 Act”,

(d) in Schedule 1, in paragraph 20(w), after “at the request of” insert “the Commission,”.

Interpretation

3

(1) In these Regulations—

“the 1996 Act” (“Deddf 1996”) means the Education Act 1996[^f00015];

“the 1998 Act” (“Deddf 1998”) means the School Standards and Framework Act 1998;

“the 2002 Act” (“Deddf 2002”) means the Education Act 2002;

“the 2013 Act” (“Deddf 2013”) means the School Standards and Organisation (Wales) Act 2013[^f00016];

“the 2014 Act” (“Deddf 2014”) means the Education (Wales) Act 2014[^f00017];

“the 2018 Act” (“Deddf 2018”) means the Additional Learning Needs and Education Tribunal (Wales) Act 2018[^f00018];

“the 2021 Act” (“Deddf 2021”) means the Curriculum and Assessment (Wales) Act 2021[^f00019];

“the 2022 Act” (“Deddf 2022”) means the Tertiary Education and Research (Wales) Act 2022[^f00020];

“additional learning needs” (“anghenion dysgu ychwanegol”) has the meaning given to it in section 2 of the 2018 Act;

“Additional Learning Needs Core Delegation” (“Dirprwyad Craidd Anghenion Dysgu Ychwanegol”) means that part of the schools budget which relates to expenditure in respect of additional learning needs and which is not set out in Schedule 3 and is allocated by a local authority to its individual schools budget;

“Additional Learning Needs Delegations” (“Dirprwyadau Anghenion Dysgu Ychwanegol”) means the total amount of the Additional Learning Needs Core Delegation and the Additional Learning Needs Discretionary Delegation;

“Additional Learning Needs Discretionary Delegation” (“Dirprwyad Disgresiynol Anghenion Dysgu Ychwanegol”) means that part of the schools budget allocated by a local authority to meet the items of expenditure set out in paragraphs 4 to 12 of Schedule 3 and which is then allocated by a local authority to schools maintained by it;

“budget statement” (“datganiad cyllideb”) means the statement referred to in section 52(1) of the 1998 Act;

“capital expenditure” (“gwariant cyfalaf”) means expenditure a local authority proposes to capitalise in its accounts in accordance with proper practices being those accounting practices— which the local authority is required to follow by virtue of any enactment, or which so far as they are consistent with any such enactment, are generally regarded whether by reference to any generally recognised published code or otherwise, as proper accounting practices to be followed in the keeping of the accounts of local authorities, either generally or of the description concerned;

“child” (“plentyn”) has the meaning given to it in section 579(1) of the 1996 Act;

“the Commission” (“y Comisiwn”) means the Commission for Tertiary Education and Research established under section 1 of the 2022 Act;

“compulsory school age” (“oedran ysgol gorfodol”) has the meaning given to it in section 8 of the 1996 Act[^f00021];

“Core Delegation” (“Dirprwyad Craidd”) means that part of the schools budget which relates to items of expenditure which are not set out in Schedule 3 and is allocated by a local authority to its individual schools budget and which is not part of the Additional Learning Needs Delegations;

“the current funding period” (“y cyfnod cyllido cyfredol”) means the funding period for which the school’s budget share is being determined in accordance with these Regulations;

“delegated budget” (“cyllideb ddirprwyedig”) has the meaning given to it in section 49(7) of the 1998 Act;

“Discretionary Delegation” means that part of the schools budget which relates to items of expenditure which are set out in Schedule 3 and is allocated by a local authority to schools maintained by it and which is not part of the Additional Learning Needs Delegations;

“Education Workforce Council” (“Cyngor y Gweithlu Addysg”) means the Education Workforce Council continued in existence by section 2 of the 2014 Act;

“eligibility for free school meals” (“cymhwystra i gael prydau ysgol am ddim”) means the eligibility for free school lunches under section 512ZB of the 1996 Act[^f00022];

“exclusion” (“gwaharddiad”), and “exclude” (“gwahardd”) shall be construed accordingly, means the exclusion of a registered pupil from a maintained school, whether for a fixed period or on a permanent basis, in accordance with section 52 of the 2002 Act and regulations[^f00023] made under that section;

“factor” (“ffactor”) means one of the factors taken into account in the local authority’s formula;

“financial scheme” (“cynllun ariannol”) means a scheme maintained by a local authority under section 48 of the 1998 Act[^f00024];

“financial year” (“blwyddyn ariannol”) has the meaning given to it in section 579(1) of the 1996 Act;

“formula” (“fformiwla”) means a formula determined by a local authority in accordance with regulation 10;

“functions” (“swyddogaethau”) has the meaning given to it in section 579(1) of the 1996 Act;

“funding period” (“cyfnod cyllido”) means a financial year;

“governing body” (“corff llywodraethu”) has the meaning given to it in section 19(1) of the 2002 Act;

“governors” (“llywodraethwyr”) means persons elected or appointed to be members of a governing body;

“Grant by the Commission” (“Grant gan y Comisiwn”) means the grant payable to the local authority by the Commission under section 101 of the 2022 Act;

“head teacher” (“pennaeth”) has the meaning given to it in section 579(1) of the 1996 Act;

“independent school” (“ysgol annibynnol”) has the meaning given to in section 463 of the 1996 Act[^f00025];

“individual development plan” (“cynllun datblygu unigol”) has the meaning given to it in section 10 of the 2018 Act;

“individual schools budget” (“cyllideb ysgolion unigol”) has the meaning given to it in section 45A(3) of the 1998 Act;

“local authority” (“awdurdod lleol”) means a council of a county or county borough in Wales;

“local authority’s unitary reference number” (“cyfeirnod unedol yr awdurdod lleol”) means the reference number allocated to the local authority by the Welsh Ministers or the Secretary of State;

“maintained nursery school” (“ysgol feithrin a gynhelir”) has the meaning given to it in section 22(9) of the 1998 Act[^f00026];

“maintained school” (“ysgol a gynhelir”) has the meaning given to it in section 45(1A) of the 1998 Act[^f00027];

“middle school” (“ysgol ganol”) has the meaning given to it in section 5(3) of the 1996 Act[^f00028];

“new school” (“ysgol newydd”) has the meaning given to it in section 72(3) of the 1998 Act[^f00029];

“non-schools education budget” (“cyllideb addysg nad yw ar gyfer ysgolion”) has the meaning given to it in section 45A(1) of the 1998 Act;

“nursery class” (“dosbarth meithrin”) means a class undergoing full time or part time education wholly or mainly suitable for children who have not attained compulsory school age;

“nursery education” (“addysg feithrin”) has the meaning given to it in section 80(1)(b) of the 2021 Act;

“outturn statement” (“datganiad alldro”) means the statement referred to in section 52(2) of the 1998 Act;

“parent” (“rhiant”) has the meaning given to it in section 576 of the 1996 Act[^f00030];

“premises” (“mangre”) has the meaning given to it in section 579(1) of the 1996 Act;

“previous funding period” (“cyfnod cyllido blaenorol”) means the funding period immediately preceding the funding period for which the local authority is determining a school’s budget share;

“primary school” (“ysgol gynradd”) has the meaning given to it in section 5(1) of the 1996 Act[^f00031] and which is or will be a maintained school;

“pupil” (“disgybl”) has the meaning given to it in section 3 of the 1996 Act[^f00032];

“pupil-led funding” (“cyllid ar sail disgyblion”) means the funding determined by a local authority in accordance with regulation 14;

“pupil referral unit” (“uned cyfeirio disgyblion”) has the meaning given to it in section 19A(2) of the 1996 Act[^f00033];

“reception class” (“dosbarth derbyn”) has the meaning given to it in section 142(1) of the 1998 Act;

“registered pupil” (“disgybl cofrestredig”) has the meaning given to it in section 434(5) of the 1996 Act;

“school category” (“categori ysgol”) means the school categories set out in section 20(1) of the 1998 Act;

“school place” (“lle ysgol”) means a place at a maintained school set aside for a child to attend as a registered pupil at that maintained school;

“school year” (“blwyddyn ysgol”) has the meaning given to it in section 579(1) of the 1996 Act[^f00034];

“schools” has the meaning given to it in section 4 of the 1996 Act[^f00035];

“schools budget” (“cyllideb ysgolion”) has the meaning given to it in section 45A(2) of the 1998 Act;

“school’s budget share” (“cyfran ysgol o’r gyllideb”) has the meaning given to it in section 47(1) of the 1998 Act;

“schools forum” (“fforwm ysgolion”) means a forum established by a local authority under section 47A(1) of the 1998 Act[^f00036];

“school’s reference number” (“cyfeirnod yr ysgol”) means the reference number allocated to a maintained school by the Welsh Ministers or the Secretary of State;

“secondary school” (“ysgol uwchradd”) has the meaning given to it in section 5(2) of the 1996 Act and which is or will be a maintained school;

“special school” (“ysgol arbennig”) has the meaning given to it in section 337(2) of the 1996 Act[^f00037];

“summer term” (“tymor yr haf”) means the final term in the school year;

“temporary governing body” (“corff llywodraethu dros dro”) means a temporary governing body constituted under section 34 of the 2002 Act[^f00038];

“Total Delegation” (“Cyfanswm y Dirprwyad”) is the total of the Core Delegation, the Discretionary Delegation, the Additional Learning Needs Core Delegation and the Additional Learning Needs Discretionary Delegation;

“the Welsh Index of Multiple Deprivation” (“Mynegai Amddifadedd Lluosog Cymru”) means the document entitled “Welsh Index of Multiple Deprivation (WIMD) 2025 Results report” published by the Welsh Ministers on 27 November 2025[^f00039];

“year group” (“grŵp blwyddyn”) means a group of children at a maintained school the majority of whom will, in a particular school year, attain the same age.

(2) In these Regulations—

(a) a reference to CERA is a reference to capital expenditure a local authority expects to charge to a revenue account of the local authority within the meaning of section 22 of the Local Government Act 2003[^f00040];

(b) a reference to excepted expenditure is a reference to the following classes or descriptions of expenditure—

(i) capital expenditure other than CERA,

(ii) expenditure for the purposes of section 28 of the Road Traffic Regulation Act 1984[^f00041] (stopping of vehicles at school crossings), and

(iii) expenditure incurred by the local authority under section 51A of the 1998 Act[^f00042] (expenditure incurred for community purposes);

(i) all related specific grants,

(ii) all related fees, charges and income, and

(iii) funding received from the Welsh Ministers in respect of a private finance transaction;

(d) a reference to a determination or redetermination of a budget share or amount to be allocated is a reference to such a determination or redetermination for the funding period, unless otherwise stated;

(e) a reference to a governing body includes the temporary governing body of a new school;

(f) a reference to a maintained school or a maintained nursery school includes a new school;

(g) a reference to a private finance transaction is a reference to a transaction as defined by regulation 16 of the Local Authorities (Capital Finance) Regulations 1997[^f00043];

(h) a reference (however framed) to a pupil being admitted to a maintained school is a reference to a pupil admitted in accordance with the admission arrangements set out in Part 3 of the 1998 Act;

(i) a reference (however framed) to schools maintained by a local authority does not include schools which are not maintained schools as defined in paragraph (1);

(j) a reference to specific grant is to any grant paid to the local authority under conditions which impose restrictions on the particular purposes of the local authority for which the grant may be used but does not include—

(i) any grant made by the Welsh Ministers under section 14 of the 2002 Act[^f00044] or a Grant by the Commission, or

(ii) any specific grant used to support expenditure through the individual schools budget.

Part 2 — Non-schools education budget, schools budget and individual schools budget

The non-schools education budget

4

(1) The classes or descriptions of local authority expenditure specified in Schedule 2 are prescribed for the purposes of section 45A(1) of the 1998 Act and the determination of a local authority’s non-schools education budget except in so far as such expenditure falls within paragraph (2).

(2) Paragraph (1) does not apply to any local authority expenditure which falls to be met from a school’s budget share by virtue of any enactment.

(3) The expenditure referred to in paragraph (1) includes expenditure on associated administrative costs and associated overheads.

Initial determination of schools budget

5

(1) A local authority must on or before 14 February immediately preceding the beginning of a funding period—

(a) make an initial determination of its schools budget for that funding period, and

(b) give notice of its initial determination to the Welsh Ministers and the governing body of every school maintained by it.

(2) Where a local authority subsequently makes a redetermination of its schools budget, it must within 28 days of making the redetermination give notice of that redetermination to the Welsh Ministers, and the governing bodies of every school maintained by it.

Schools budget

6

(1) The classes or descriptions of local authority expenditure specified in paragraph (2) are prescribed for the purposes of section 45A(2) of the 1998 Act and the determination of a local authority’s schools budget.

(2) The classes or descriptions of local authority expenditure are—

(a) expenditure on the provision and maintenance of maintained schools and on the education of pupils registered at those schools,

(b) expenditure on the education of pupils at—

(i) independent schools,

(ii) pupil referral units,

(iii) the home of the pupil, and

(iv) hospital,

(c) expenditure on any other arrangements for the provision of primary education and secondary education for pupils otherwise than at maintained schools, and

(d) all other expenditure incurred in connection with the local authority’s functions in relation to the provision of primary education and secondary education, in so far as such expenditure does not fall within paragraph (2)(a) to (c).

(3) Paragraph (2) does not include the following classes or descriptions of expenditure—

(a) expenditure which falls within a class or description of expenditure prescribed by regulation 4, and

(b) excepted expenditure.

(4) In this regulation—

“primary education” (“addysg gynradd”) has the meaning given to it in section 2(1) of the 1996 Act[^f00045];

“secondary education” (“addysg uwchradd”) has the meaning given to it in section 2(2) of the 1996 Act.

Individual schools budget

7

(1) A local authority must on or before 14 February immediately preceding the beginning of a funding period, deduct from its schools budget any or all of the classes or descriptions of planned expenditure set out in Schedule 3, in whole or in part, as it proposes to deduct in order to arrive at its individual schools budget for that funding period.

(2) The expenditure referred to in paragraph (1) includes expenditure on associated administrative costs and associated overheads.

Part 3 — Schools’ Budget Shares

Allocation of individual schools budget

8

(1) Subject to paragraph (2) a local authority must allocate in each funding period in accordance with this Part, all of its individual schools budget for that funding period as schools’ budget shares for schools it maintains.

(2) A local authority need not initially allocate all of its individual schools budget in the form of schools’ budget shares at the beginning of a funding period, and may instead retain an amount for the purpose of redeterminations or the correction of errors (“retained allocation”).

(3) Any retained allocation must be used for the purposes set out in paragraph (2) or distributed to schools as required by paragraph (1) before the end of that funding period.

Timing and notification of initial determination of schools’ budget shares

9

(1) A local authority must on or before 31 March immediately preceding the beginning of a funding period—

(a) make an initial determination of the amount of a school’s budget share for schools that it maintains for that funding period, and

(b) give notice of each school’s budget share for that funding period to the governing bodies of the schools it maintains.

(2) The notice given under paragraph (1)(b) must—

(a) contain an explanation of how the school’s budget share was determined, and

(b) contain an estimate of the school’s budget shares for the following two funding periods.

(3) The estimate provided under paragraph (2)(b) is not binding on the local authority as to the actual determinations it may make for the following two funding periods.

Formula for determination of schools’ budget shares

10

(1) A local authority must determine after the consultation referred to in regulation 11 and before the beginning of a funding period, the formula it will use to determine schools’ budget shares in that funding period.

(2) A local authority in determining the formula must have regard to the factors, criteria and requirements set out in this Part.

(3) A local authority must have regard to the desirability of such a formula being simple, objective, measurable, predictable in effect and clearly expressed.

(4) A local authority must not use factors or criteria in its formula which make an allowance, in whole or in part, for any amount allocated to a maintained school from any grant paid to the local authority by the Welsh Ministers.

(5) Subject to regulation 28 (arrangements approved by the Welsh Ministers) a local authority must use the formula determined under paragraph (1) in all determinations and redeterminations of schools’ budget shares.

Consultation

11

(1) A local authority must consult with those persons set out in paragraph (2) before determining its formula under regulation 10(1) and before any proposed changes to its formula are made in relation to—

(a) the factors and criteria which were taken into account in determining its formula,

(b) the methods used in determining its formula, or

(c) the principles and rules adopted in its formula in the preceding funding period including any new factors, criteria, methods, principles or rules.

(2) A local authority must consult with—

(a) the schools forum for its area, and

(b) the governing body and head teacher of every school it maintains.

(3) Paragraph (1) does not apply to redeterminations, or corrections of errors, made under regulations 8(2), 22(4) or 26.

(4) The consultation must take place in sufficient time to allow the outcome to be taken into account in the determination of the local authority’s formula and in the initial determination of schools’ budget shares.

(5) A local authority must inform all those who were consulted of the outcome of the consultation.

Publication of local authority formula

12

(1) A local authority must publish the formula determined in accordance with regulation 10 (“the determined formula”) free of charge on a website maintained by the local authority and which is accessible to the general public.

(2) The local authority must send an electronic copy of the determined formula to the governing body and head teacher of each school maintained by it.

(3) Whenever a local authority redetermines the determined formula, it must no later than the date that the redetermined formula is due to come into force publish the redetermined formula in accordance with paragraphs (1) and (2), together with a statement that the redetermined formula comes into force on that date.

New schools

13

(1) A new school must have a delegated budget from the date when the school first admits pupils.

(2) But a local authority’s schools forum may on the application of the local authority—

(a) vary that date to one proposed by the local authority,

(b) vary the date to a different date, or

(3) Where the schools forum varies the date to a different date or refuses to vary it, the local authority may apply to the Welsh Ministers to vary the date.

(4) The Welsh Ministers may—

(a) vary the date to one proposed by the local authority,

(b) vary the date to a different date, or

Percentage of “pupil-led” funding

14

(1) Subject to paragraph (2), in determining and redetermining schools’ budget shares for primary schools and secondary schools a local authority must ensure that its formula provides that at least 70% of the amount which is its individual schools budget is allocated in one or more of the following manners—

(a) in accordance with regulation 15(1);

(b) in accordance with regulation 15(6) where the matters set out in regulation 15(7) are taken into account by the local authority;

(c) in accordance with any other factors or criteria using pupil numbers which provide for the same funding for pupils of the same age irrespective of the nature of the maintained school which they attend;

(d) to school places in maintained schools the local authority recognises as reserved for children in nursery classes;

(e) to school places in primary schools or secondary schools the local authority recognises as reserved for children with additional learning needs;

(f) for pupils with an individual development plan where funding in respect of such pupils forms part of the school’s delegated budgets.

(2) For the purposes of this regulation, the following must be excluded from the local authority’s individual schools budget—

(a) the school’s budget shares of schools providing education only for pupils over compulsory school age,

(b) the school’s budget shares of special schools, and

(c) any part of the individual schools budget retained under regulation 8(2) for the purpose of redeterminations or the correction of errors.

Pupil numbers

15

(1) A local authority must take into account in its formula the number of registered pupils at the following schools on such dates as may be determined by it in determining schools’ budget shares—

(a) maintained nursery schools,

(b) primary schools, and

(2) For the purposes of paragraph (1), the number of registered pupils does not include—

(a) pupils in respect of whom a Grant by the Commission is payable,

(b) pupils in school places the local authority recognises as reserved for children with additional learning needs, or

(c) pupils in school places the local authority recognises as reserved for children in nursery classes except where the local authority chooses under regulation 18 to take into account in its formula the number of school places it wishes to fund in respect of children in nursery classes.

(3) Where a local authority determines only one date for the purposes of paragraph (1) it must be a date which falls—

(a) before the beginning of the funding period in question, and

(b) in the school year in which the beginning of the funding period in question falls.

(4) Where a local authority determines more than one date for the purposes of paragraph (1) then—

(a) one of those dates must satisfy paragraph (3), and

(b) as respects the other date or dates—

(i) no date may be earlier than the beginning of the school year in which the beginning of the funding period in question falls, and

(ii) the local authority may determine a date or dates which are in the future and estimate the number of registered pupils at the school on that date or those dates.

(5) The restrictions on the dates in paragraphs (3) and (4) do not apply in relation to pupils in nursery classes or reception classes whom the local authority takes into account under paragraph (1).

(6) A local authority may take into account in its formula the factors set out in paragraph (7) in determining schools’ budget shares for—

(a) special schools, and

(b) primary or secondary schools with school places the local authority recognises as reserved for children with additional learning needs or reserved for children in nursery classes (“reserved school places”).

(7) The factors referred to in paragraph (6) are—

(a) the number of registered pupils at those special schools on the date or dates determined in accordance with paragraph (1), and

(b) the number of pupils in the reserved school places at primary schools or secondary schools on the date or dates determined in accordance with paragraph (1).

(8) Subject to paragraph (9), a local authority may determine a number representing the number of pupils who will be admitted in a summer term, and take such number into account in its formula where—

(a) a maintained school operates a policy of admitting children into nursery or reception classes in that summer term, and

(b) that maintained school will admit pupils into such classes in the summer term immediately after the date or dates determined in accordance with paragraph (1).

(9) In determining the number of pupils a local authority will take into account under paragraph (8), it must—

(a) not determine any number which exceeds the number of pupils admitted in the summer term immediately prior to the date or dates determined in accordance with paragraph (1), and

(b) make any such determination before the beginning of the funding period during which the pupils will be admitted.

(10) A local authority must include provision in its formula enabling it to adjust the number of registered pupils used to determine a school’s budget share where it is appropriate to do so in order to take into account, wholly or partly—

(a) the permanent exclusion of a pupil from the maintained school, or

(b) the admission of a pupil following that pupil’s permanent exclusion from another school maintained by a local authority.

Further requirements relating to the funding of pupils

16

(1) In determining and redetermining a school’s budget share, a local authority may weight any funding it provides on a per pupil basis according to any or all of the following factors as at the date or dates determined in accordance with regulation 15(1)—

(a) the age of pupils, including according to year group;

(b) whether a pupil is provided with nursery education by a maintained school;

(d) in the case of pupils aged under five, hours of attendance;

(e) additional learning needs;

(f) whether a pupil at a maintained school is also attending a further education institution;

(g) whether a pupil is being educated through the medium of Welsh.

(2) In this regulation “further education institution” has the meaning given in section 140 of the 2002 Act[^f00046].

Pupil numbers: dual registration

17

(1) Where a pupil is a dual registered pupil then that pupil must be treated as being a full-time pupil at each maintained school unless the local authority expressly provides otherwise in its formula.

(2) In this regulation “a dual registered pupil” means a pupil registered at more than one maintained school in accordance with regulations made under section 434 of the 1996 Act[^f00047].

School places

18

(1) In determining and redetermining schools’ budget shares a local authority may take into account in its formula the number of school places it wishes to fund in—

(a) special schools,

(b) primary schools or secondary schools with school places the local authority recognises as reserved for children with additional learning needs,

(c) maintained schools with school places the local authority recognises as reserved for children in a nursery class, and

(d) maintained nursery schools.

(2) In determining and redetermining schools’ budget shares a local authority may take into account in its formula the nature of any additional learning needs when funding—

(a) school places at special schools, and

(b) school places that the local authority recognises as reserved for children with additional learning needs in primary schools or secondary schools.

(3) A local authority must provide that, if any school places at special schools are taken into account in accordance with paragraph (1), the number must be no fewer than the number of registered pupils at the school on the date or dates determined in accordance with regulation 15(1).

Schools of a particular description

19

(1) Where a local authority deducts from its schools budget planned expenditure which relates to maintained schools of a particular description, it must include factors or criteria in its formula in respect of that planned expenditure, in relation to maintained schools which do not fall within that description.

(2) In this regulation a reference to “schools of a particular description” includes a description of one or more maintained schools by reference to their school category, the type of educational provision made by the schools or such other description as the local authority considers appropriate.

Differential funding

20

A local authority must not use in its formula any factors or criteria which differentiates between maintained schools by reference to their school category except where differences in the functions of the governing bodies of schools of different categories justify such differentiation.

Additional factors or criteria

21

(1) Subject to regulations 19 and 20, a local authority may in determining schools’ budget shares take into account in its formula such factors or criteria as it considers appropriate.

(2) A local authority must not in determining schools’ budget shares reduce those shares in respect of any other income received by a maintained school.

(3) A local authority must take into account in determining schools’ budget shares whether a budget share for a maintained school would otherwise be reduced in two successive years by more than 5%.

(4) Where a local authority determines in accordance with paragraph (3) that the school’s budget shares of a maintained school that it maintains has reduced in two successive years by more than 5% and determines to increase the funding to that school to address that reduction, it must increase the funding in accordance with a scale published by the local authority in its financial scheme.

(5) A local authority must, in determining the school’s budget shares for the primary schools and secondary schools it maintains, include in its formula a factor or factors based on the incidence of social deprivation (“the social deprivation factor”) among pupils registered at the maintained school.

(6) The incidence of social deprivation at a maintained school is to be determined by taking into account at least one of the following criteria—

(a) the number of pupils who are eligible for free school meals, or

(b) the pupil’s residency in relation to the Welsh Index of Multiple Deprivation.

(7) The amount determined in respect of the social deprivation factor under paragraph (6) must not—

(a) include any funding allocated or to be allocated in respect of the provision of free school meals to those pupil’s eligible for free school meals, or

(b) include any funding allocated or to be allocated for the support of pupils with additional learning needs.

(8) Where a local authority under this regulation takes new factors or criteria into account in its formula or deletes factors from its formula or determines a formula substantially or wholly different from the previous funding period, it may make such transitional provision as it considers reasonable.

Funding for pupils over compulsory school age

22

(1) Subject to regulation 25, the school’s budget share for a secondary school or special school that provides education suitable for the requirements of persons over compulsory school age must include an amount (“the Amount”) in respect of that school’s pupils above compulsory school age.

(2) The Amount must include, on a net basis—

(a) an allocation by the local authority in respect of that school’s provision for pupils over compulsory school age in accordance with the conditions of a Grant by the Commission, and

(b) any sum the local authority provides for education of pupils over compulsory school age.

(3) To the extent the Amount is not subject to the conditions in a Grant by the Commission, a local authority must, in determining schools’ budget shares use a factor which allocates funding in respect of pupils over compulsory school age.

(4) A school’s budget share for a funding period must be redetermined before the end of that funding period where the local authority receives a written notification from the Commission of an allocation of a Grant by the Commission or a revised allocation of a Grant by the Commission.

School re-organisation

23

(1) This regulation applies to a maintained school (“relevant school”) which is—

(a) a new school,

(b) a maintained school other than a new school, proposals for the establishment of which under any enactment have not been fully implemented,

(c) a maintained school which is the subject of proposals for a prescribed alteration under Chapter 2 of Part 3 of the 2013 Act, and

(d) a maintained nursery school which is to be discontinued in the funding period in question.

(2) A local authority must include factors or criteria in its formula for the school’s budget share which enable it to determine the school’s budget share so as to take into account the particular needs of relevant schools.

(3) The factors or criteria referred to in paragraph (2) may, if the funding period in question precedes the funding period in which a relevant school first admits pupils, determine the amount of the school’s budget share as zero.

(4) For the purposes of this regulation, proposals for the establishment of a maintained school have been fully implemented when the number of pupils admitted to the school in each year group has, in the opinion of the local authority, reached—

(a) that number of pupils indicated, when proposals for the establishment of the school were published, as the number of pupils to be admitted to each year group when the proposals were fully implemented, or

(b) if no such number was indicated, such number as the authority may determine.

Federated schools

24

(1) Subject to paragraphs (2) and (3), where two or more maintained schools are federated under section 10 of the Education (Wales) Measure 2011[^f00048] (“the 2011 Measure”), the local authority must determine a school’s budget share for each school in accordance with Part 3 of these Regulations.

(2) After carrying out the determination in paragraph (1), the local authority must allocate a single school’s 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 school’s budget share, and

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

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

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

(a) in accordance with Part 3 of these Regulations, determine the school’s budget share for each of the leaving schools,

(b) in accordance with Part 3 of these Regulations, redetermine the school’s budget share for the federation, and

(c) where a federation has a surplus or a deficit immediately before the leaving schools leave the federation, apportion that surplus or deficit between the federation and the leaving schools as it sees fit.

(5) In this regulation—

“federated school” (“ysgol ffederal”) means a maintained school forming part of a federation;

“federation” (“ffederasiwn”) has the meaning given to it in section 21(1) of the 2011 Measure.

25

(1) This paragraph applies where a school’s budget share for the current funding period was—

(a) determined by reference to an estimate of the number of registered pupils at the maintained school on the date or dates determined in accordance with regulation 15(1), and

(b) differences between the estimated number of pupils on the date or dates determined in accordance with regulation 15(1) and the actual number of pupils at the maintained school on that date or those dates were not taken into account in a redetermination of the school’s budget share for that funding period.

(2) Where paragraph (1) applies the local authority must determine that school’s budget share for the funding period immediately following the current funding period so as to take into account those differences.

(3) A local authority may determine a school’s budget share for a funding period so as to take into account any other change during the course of the preceding funding period in the data by reference to which the school's budget share for that preceding funding period was determined, if those changes were not taken into account in a redetermination of the school’s budget share for that preceding funding period.

(4) A local authority may adjust the number of registered pupils used to determine a school’s budget share for a funding period where it is appropriate to do so in order to take into account, wholly or partly—

(a) any reduction or increase in the school’s budget share for the preceding funding period arising from the permanent exclusion of a pupil from the maintained school or the admission to the maintained school of a pupil permanently excluded from another maintained school, or

(b) any increase in the school’s budget share for the preceding funding period arising from increases in pupil numbers during the course of that funding period.

(5) A local authority must include factors or criteria in its formula which satisfy the requirements of this regulation.

Pupils permanently excluded or admitted following a permanent exclusion

26

(1) Where a pupil is permanently excluded from a maintained school by a local authority during a funding period, the local authority must redetermine the school’s budget share for that funding period in accordance with paragraph (2).

(2) The school’s budget share is to be reduced by the amount A × (B/52) where—

(a) A is the amount, in the funding period in which the permanent exclusion takes effect, determined by the local authority in accordance with these Regulations to be attributable for the full funding period to a registered pupil of the same age and personal circumstances as the pupil in question at primary or secondary schools maintained by the local authority, and

(b) subject to paragraph (4), B is the number of complete weeks remaining in the funding period calculated from the relevant date.

(3) For the purposes of paragraph (2)(a) the amount attributable to a registered pupil is the sum of the amounts determined in accordance with the local authority’s formula or regulation 28 by reference to pupil numbers rather than by reference to the number of school places at the maintained school or any other factor or criterion not dependent on pupil numbers.

(4) Where the permanent exclusion takes effect on or after 1 April in a school year at the end of which pupils of the same age or year group as the pupil in question normally leave that maintained school prior to being admitted to another school with a different pupil age range, B is the number of complete weeks remaining in that school year calculated from the relevant date.

(5) Where a pupil who has been permanently excluded from a maintained school is, in the same funding period, admitted to a school maintained by the local authority (“the admitting maintained school”), the local authority must redetermine the admitting school’s budget share in accordance with paragraph (6).

(6) The school’s budget share is to be increased by an amount which may not be less than the amount D × (E/F) where—

(a) D is the amount by which the local authority reduces the school’s budget share of the maintained school from which the pupil was permanently excluded or would have reduced it had that school been maintained by the local authority,

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

(7) Where a permanently excluded pupil is subsequently reinstated by the governing body of the maintained school or by an appeal panel constituted under regulations made under section 52 of the 2002 Act, 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 has reduced the school’s budget share,

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

(8) Paragraphs (1) and (2) also apply where a pupil—

(a) leaves a maintained school for reasons other than permanent exclusion, and

(b) is receiving education funded by a local authority other than at a school maintained by that local authority.

(9) In this regulation, “the relevant date” has the meaning prescribed in regulations made under section 494 of the 1996 Act[^f00049].

Correction of errors

27

A local authority may at any time during a funding period redetermine a school’s budget share for that funding period in order to correct an error in a determination or redetermination under these Regulations, whether arising from a mistake as to the number of registered pupils at the maintained school or otherwise.

Arrangements approved by the Welsh Ministers

28

The Welsh Ministers may, where it appears to them to be expedient to do so, authorise a local authority to determine or redetermine a school’s budget share—

(a) at any time,

(b) to such extent as they may specify, and

(c) in accordance with arrangements approved by them in place of the arrangements provided for elsewhere in these Regulations.

Part 4 — Financial Schemes

Required content of schemes

29

A financial scheme must deal with the matters connected with the financing of schools maintained by it set out in Schedule 4.

Manner and timing of publication

30

(1) For the purposes of paragraph 1(7) of Schedule 14 to the 1998 Act (prescribed manner of publication of financial schemes) a local authority must no later than the date the financial scheme comes into force publish free of charge the financial scheme on a website maintained by the local authority and which is accessible to the general public.

(2) The local authority must send an electronic copy of the financial scheme to the governing body and head teacher of each school maintained by the local authority.

(3) Whenever a local authority revises the whole or part of its financial scheme, it must publish the financial scheme as revised in accordance with paragraphs (1) and (2) no later than the date that the revisions are due to come into force, together with a statement that the revised financial scheme comes into force on that date.

Approval by the schools forum or the Welsh Ministers of proposals to revise financial schemes

31

(1) Where a local authority submits proposals for any revisions to its financial scheme to its schools forum for approval under paragraph 2A of Schedule 14 to the 1998 Act[^f00050] (“proposed revisions”), the schools forum may—

(a) approve any proposed revisions,

(b) approve any proposed revisions subject to modifications they may make, or

(2) Where the schools forum approves any proposed revisions, they may specify the date upon which any proposed revisions are to come into force.

(3) The local authority may apply to the Welsh Ministers for approval of any proposed revisions where the school forum—

(a) refuses to approve the proposed revisions, or

(b) approves the proposed revisions subject to modifications which are not acceptable to the local authority.

(4) The Welsh Ministers may—

(a) approve any proposed revisions,

(b) approve any proposed revisions subject to modifications they may make, or

(5) Where the Welsh Ministers approve any proposed revisions, they may specify the date upon which any proposed revisions are to come into force.

(6) No proposed revisions are to come into force unless approved by the schools forum or the Welsh Ministers in accordance with this regulation.

Part 5 — Budget Statements

Prescribed form of budget statements

32

(1) A budget statement must be prepared in 2 parts.

(2) Part 1 of a budget statement must be completed—

(a) in respect of the local authority’s planned expenditure for each school maintained by it for the funding period to which the budget statement relates, and

(b) in accordance with Schedule 5.

(3) Part 2 of a budget statement must be completed—

(a) in respect of the local authority’s formula for the funding period to which the budget statement relates, and

(b) in accordance with Schedule 6.

(4) Where a person is carrying out functions on behalf of a local authority, the local authority must include information in Part 1 and Part 2 of the budget statement as if expenditure by that person in carrying out those functions were expenditure of the local authority.

Manner of publication of budget statements

33

(1) For the purposes of section 52(3)(b) of the 1998 Act, every budget statement must be published by—

(a) supplying a copy to the Welsh Ministers by email, and

(b) making a copy available free of charge on a website maintained by the local authority and which is accessible to the public.

(2) Any computer language or software used to supply the budget statement must be one the Welsh Ministers have notified to the local authority.

(3) At the same time as it publishes a budget statement in accordance with this regulation, the local authority must provide the governing body and head teacher of each school maintained by it with a copy of Part 1 and Part 2 of the budget statement.

Timing of publication of budget statements

34

(1) A budget statement must be published before the beginning of the funding period to which it relates.

(2) A budget statement must not be revised during the funding period to which it relates other than to correct errors in the statement as previously published.

(3) A revised budget statement is subject to regulations 32 and 33, and paragraph (2) of this regulation.

(4) Nothing in this regulation requires a revised version of the Welsh text to be prepared if the errors are only in the English text and vice versa.

Part 6 — Outturn Statements

Form of outturn statements

35

(1) An outturn statement must be prepared in both English and Welsh.

(2) An outturn statement must include—

(a) a heading at the top of the first page indicating that it is an outturn statement,

(b) the name of the local authority that prepared the statement,

(d) the local authority’s unitary reference number.

Information for outturn statements

36

A local authority must include in an outturn statement for each school maintained by it—

(a) the amount of the school’s budget share for the funding period to which the outturn statement relates and which is included in Part 1 of the local authority’s budget statement,

(b) particulars of any in-year increases or decreases to the school’s budget share in consequence of any redetermination of its budget share under these Regulations,

(d) the total amount allocated to the maintained school by the local authority in that funding period,

(e) the balance brought forward from the previous funding period in respect of any surplus or deficit in the school’s budget share in any previous funding period,

(f) the amount to be carried forward to the following funding period in respect of any surplus or deficit in the school’s budget share for that or any previous funding period,

(g) the total amount of expenditure attributed to the maintained school, derived by adding the difference between the amount referred to in paragraph (e) and the amount referred to in paragraph (f) to the total amount made available to the school by the local authority, and

(h) any amount treated by the local authority as income attributed to the maintained school and which is not reflected in any of the amounts specified in the outturn statement by virtue of paragraphs (a) to (d).

Manner of publication of outturn statements

37

(1) Every outturn statement must be published by—

(a) supplying a copy to the Welsh Ministers by email, and

(b) making a copy available free of charge on a website maintained by the local authority and which is accessible to the public.

(2) Any computer language or software used to supply the outturn statement must be one the Welsh Ministers have notified to the local authority.

Timing of publication of outturn statements

38

An outturn statement must be published before 31 July following the end of the funding period to which it relates.

Schedule 1 — Revocations

Table of revocations

1

The enactments cited in the table are revoked.

Title	Number	Extent of revocation
The Education (Budget Statements) (Wales) Regulations 2002	S.I. 2002/122 (W. 16)	Fully
The Education (Outturn Statements) (Wales) Regulations 2003	S.I. 2003/873 (W. 109)	Fully
The Education Act 2002 (Transitional Provisions and Consequential Amendments) (Wales) Regulations 2005	S.I. 2005/2913 (W. 210)	Regulation 17
The School Funding (Wales) Regulations 2010	S.I. 2010/824 (W. 87)	Fully
The Local Education Authorities and Children’s Services Authorities (Integration of Functions) (Subordinate Legislation) (Wales) Order 2010	S.I. 2010/1142 (W. 101)	Paragraphs 7 and 19 of Schedule 1
The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021	S.I. 2021/296 (W. 73)	Regulation 11
The Curriculum and Assessment (Wales) Act 2021 (Consequential Amendments) (Secondary Legislation) (No. 1) Regulations 2022	S.I. 2022/666 (W. 149)	Regulation 7

Schedule 2 — Classes or Descriptions of Planned Expenditure Prescribed for the Purposes of the Non-schools Education Budget of a Local Authority

Interpretation

1

In this Schedule—

“the 2000 Act” (“Deddf 2000”) means the Learning and Skills Act 2000[^f00051];

“local well-being plan” (“cynllun llesiant lleol”) means a plan published by a local authority under section 39, 44(5). or 47(6) or (11) of the Well-being of Future Generations (Wales) Act 2015[^f00052].

Additional learning needs

2

Expenditure on services provided by educational psychologists.

3

Expenditure in connection with the local authority’s functions under sections 13, 14[^f00053], 18, 19, 20, 21, 22, 23, 24, 26, 27, 28, 30 and 32 of the 2018 Act (which functions relate to the identification and assessment of children with additional learning needs and the making, maintaining and reviewing of individual development plans for such children).

4

Expenditure on monitoring the provision for pupils in schools whether or not those schools are maintained by the local authority for the purposes of—

(a) disseminating good practice in relation to educational provision for children with additional learning needs, and

(b) improving the quality of educational provision for children with additional learning needs.

5

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

6

Expenditure in connection with the provision of—

(a) information and advice under section 9 of the 2018 Act (advice and information), or

(b) other guidance and information to the parents of pupils with additional learning needs which, in relation to pupils at a school maintained by the local authority, is in addition to the information usually provided by the governing bodies of such schools.

7

Expenditure in connection with arrangements made by the local authority with a view to avoiding or resolving disagreements with the parents of children with additional learning needs.

8

Expenditure incurred in relation to the preparation of any part of the local authority’s local well-being plan relating to the education of children with behavioural difficulties.

Health and child protection

9

Expenditure on carrying out the local authority’s child protection functions under the Children Act 1989[^f00054], the Social Services and Well-being (Wales) Act 2014[^f00055] and under section 175 of the 2002 Act[^f00056] and other functions relating to child protection.

10

Expenditure incurred in entering into, or subsequently incurred under, an arrangement under section 33 of the National Health Service (Wales) Act 2006[^f00057] (arrangements between NHS bodies and local authorities).

11

(1) Expenditure in providing special medical support for individual pupils in so far as such expenditure is not met by a National Health Service Trust, a National Health Service Foundation Trust, an integrated care board, a Local Health Board or the Welsh Ministers.

(2) In this paragraph—

“integrated care board” (“bwrdd gofal integredig”) means an integrated care board established under section 14Z25 of the National Health Service Act 2006[^f00058];

“Local Health Board” (“Bwrdd Iechyd Lleol”) means a Local Health Board established under section 11 of the National Health Service (Wales) Act 2006;

“National Health Service Foundation Trust” (“Ymddiriedolaeth Sefydledig Gwasanaeth Iechyd Gwladol”) means a National Health Service foundation trust established under section 30 of the National Health Service Act 2006[^f00059];

“National Health Service Trust” (“Ymddiriedolaeth Gwasanaeth Iechyd Gwladol”) means a National Health Service trust established under section 25 of the National Health Service Act 2006[^f00060].

School improvement

12

Expenditure incurred by the local authority in respect of action to support the improvement of standards in schools maintained by the local authority, including, in particular—

(a) expenditure incurred in connection with the exercise of its functions under section 197 of the 2002 Act[^f00061] (partnership agreements and statements),

(b) expenditure incurred in connection with the exercise of its functions under sections 3 to 9 of the 2013 Act (powers of intervention of a local authority in the conduct of a maintained school), and

Access to education

13

Expenditure in relation to the following matters—

(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,

(b) the local authority’s functions in relation to the exclusion of pupils from schools including advice to the parents of an excluded pupil but excluding the making of any provision of education to such pupils,

(c) administering the system for admissions of pupils to schools including admissions appeals and carrying out consultations under section 89(2) of the 1998 Act[^f00062] (procedure for determining admission arrangements),

(d) expenditure incurred in connection with the local authority’s functions under section 85A of the 1998 Act[^f00063] (admission forums),

(e) the local authority’s functions under the Learner Travel (Wales) Measure 2008[^f00064],

(f) the local authority’s functions under sections 510[^f00065] and 514[^f00066] of the 1996 Act (provision and administration of clothing grants and boarding grants), and

(g) expenditure on the payment of expenses and grants under regulations made under section 518(1) of the 1996 Act[^f00067].

14

(1) Expenditure on the Education Welfare Service of the local authority and other expenditure arising from the local authority’s functions under Chapter 2 of Part 6 of the 1996 Act (school attendance).

(2) In this paragraph “Education Welfare Service” means a service provided by a local authority for the purpose of reducing levels of unauthorised absence from schools.

15

Expenditure on the provision of support for students under section 1(1) of the Education Act 1962[^f00068] and under section 22 of the Teaching and Higher Education Act 1998[^f00069].

16

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

17

Expenditure on the payment to persons over compulsory school age of allowances under regulations made under section 518(1)(b) of the 1996 Act[^f00070] (payment of school expenses; grant of scholarships, etc.).

18

Expenditure on the payment to persons over compulsory school age of allowances in connection with education or training made under section 14 of the 2002 Act[^f00071] (power for the Welsh Ministers to provide financial assistance) or under regulations made under section 181(1) of the 2002 Act (allowances in respect of education or training).

Education, training and services for young persons and adults

19

Expenditure on the provision by the local authority of education and training and of organised leisure time occupation and other provision under sections 15A[^f00072] and 15B[^f00073] of the 1996 Act.

20

Expenditure on the provision by the local authority under sections 15A and 508[^f00074] of the 1996 Act of recreation and social and physical training.

21

(1) Expenditure on the local authority’s provision of services under section 123 of the 2000 Act (provision of services) to encourage and enable the participation by young persons in education and training.

(2) In this paragraph, “young persons” has the meaning given to it in section 579(1) of the 1996 Act.

22

Expenditure in relation to the local authority’s functions in connection with the local curriculum under sections 33J[^f00075], 33K[^f00076] and 33L[^f00077] of the 2000 Act.

Strategic management

23

(1) Expenditure in connection with a local authority’s education functions in relation to—

(a) functions of the chief education officer of a local authority and its personal staff,

(b) planning for the education service of the local authority as a whole including—

(i) planning and managing the supply of school places, and functions in relation to the establishment, alteration or discontinuance of schools under Chapters 2, 3 and 3A[^f00078] of Part 3 of the 2013 Act,

(ii) the preparation of any part of the local authority’s local well-being plan relating to school organisation and school improvement, and

(iii) responding to policy statements and consultation papers,

(c) functions of the local authority under Part 1 of the Local Government (Wales) Measure 2009[^f00079] (local government improvement) and Chapter 1 of Part 6 of the Local Government and Elections (Wales) Act 2021[^f00080] (performance, performance assessments and intervention: principal councils) 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,

(d) revenue budget preparation,

(e) the preparation of information on income and expenditure relating to education for incorporation into the local authority’s annual statement of accounts,

(f) the external audit of grant claims and returns relating to education and functions of the local authority under section 44 of the 2002 Act[^f00081] (accounts of maintained schools),

(g) administration of grants to the local authority (including preparation of applications), functions imposed by or under Chapter 4 of Part 2 of the 1998 Act and, where it is the local authority’s duty to do so, ensuring payments are made in respect of taxation, national insurance and superannuation contributions,

(h) authorisation and monitoring of—

(i) expenditure which is not met from schools’ budget shares and is related to financial administration, and

(ii) expenditure in respect of schools which do not have delegated budgets and is related to financial administration,

(i) the local authority’s monitoring of compliance with the requirements of its financial scheme, and any other requirements in relation to the provision of community facilities by governing bodies under section 27 of the 2002 Act (power of governing body to provide community facilities etc.),

(j) tasks necessary for the discharge of the local authority’s chief finance officer’s responsibilities under section 151 of the Local Government Act 1972[^f00082] (financial administration),

(k) in respect of staff (“staff”) who are funded by expenditure not met from schools’ budget shares and who are paid for services carried out in relation to those of the local authority’s functions and services which are referred to in this Schedule the cost of—

(i) recruiting those staff,

(ii) training those staff,

(iii) the continuing professional development of those staff,

(iv) the performance management of those staff, and

(v) the personnel management of those staff,

(l) 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,

(m) functions of the local authority in relation to superannuation, including the administration of teachers’ pensions, other than functions which have been delegated to the governing bodies of schools,

(n) retrospective membership of pension schemes and retrospective elections made in respect of pensions where it would not be appropriate to expect a governing body to meet the cost from the school’s budget share,

(o) advice, in accordance with the local authority’s statutory functions, to governing bodies—

(i) in relation to staff paid, or to be paid, to work at a school (“the school workforce”), and

(ii) in relation to the management of the school workforce 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 the school workforce,

(p) determination of conditions of service for non-teaching staff and advice to schools on the grading of such staff,

(q) the local authority’s functions relating to the appointment or dismissal of employees,

(r) consultation and functions preparatory to consultation with or by governing bodies, pupils and persons employed at schools or their representatives, or with other interested bodies,

(s) compliance with the local authority’s duties under the Health and Safety at Work etc. Act 1974[^f00083] and the relevant statutory provisions as defined in section 53(1)[^f00084] of that Act in so far as compliance cannot reasonably be achieved through tasks delegated to the governing bodies of schools and including expenditure incurred by the local authority in monitoring the performance of such tasks by governing bodies and where necessary the giving of advice to them,

(t) the investigation and resolution of complaints including action taken to assist a governing body in handling a complaint,

(u) legal services relating to the functions of the local authority,

(v) the preparation and review of plans involving collaboration with other services of a local authority or with public or voluntary bodies,

(w) the preparation and publication of any part of the local authority’s local well-being plan relating to early years development and childcare and the provision of, but not the expenditure authorised by, an early years development and childcare partnership under section 119 of the 1998 Act[^f00085],

(x) provision of information to or at the request of the Commission, Welsh Ministers, a government department or anybody exercising functions on behalf of the Crown and the provision of other information which the local authority is under a duty to make available,

(y) the payment of fees payable to the Education Workforce Council under section 9 of the 2014 Act (register maintained by the Education Workforce Council),

(z) expenditure incurred in the provision of information required by the Education Workforce Council under section 36 of the 2014 Act (supply of information by employers to the Education Workforce Council),

(aa) expenditure incurred in connection with the local authority’s functions under regulations made under section 12 of the 2002 Act[^f00086] (supervising by authorities of companies formed by governing bodies), and

(bb) expenditure incurred in connection with the local authority’s functions under the discrimination provisions of the Equality Act 2010[^f00087] in so far as compliance cannot reasonably be achieved through tasks delegated to the governing bodies of schools and including expenditure incurred by the local authority in monitoring the performance of such tasks by governing bodies and where necessary the giving of advice to them.

(2) In this paragraph—

“chief education officer” (“prif swyddog addysg”) means the person appointed to that office under section 532 of the 1996 Act[^f00088];

“chief finance officer” (“prif swyddog cyllid”) means the person having responsibility for the financial affairs of the local authority;

“childcare” (“gofal plant”) has the meaning given to it in section 30 of the Childcare Act 2006[^f00089];

“early years development” (“datblygu blynyddoedd cynnar”) means the development of children below compulsory school age including through the provision of nursery education under section 117 of the 1998 Act;

“education functions” (“swyddogaethau addysg”) has the meaning given to it in section 579(1) of the 1996 Act[^f00090].

24

Expenditure in connection with monitoring the performance of schools, monitoring the management of delegated budgets and with monitoring the management and governance of such schools.

25

Expenditure on establishing and maintaining electronic computer systems, including data storage, in so far as they link, or facilitate the linking of—

(a) the local authority to schools it maintains (“local authority schools”),

(b) local authority schools to each other, or

26

Expenditure on monitoring the curriculum assessment arrangements required by regulations made under Part 4 of the 2021 Act[^f00091].

27

Expenditure in connection with the local authority’s functions in relation to the Standing Advisory Council on Religion, Values and Ethics constituted by the local authority under section 390(1A) of the 1996 Act[^f00092] or in the reconsideration and preparation of an agreed syllabus of Religion, Values and Ethics in accordance with Schedule 31 to the 1996 Act[^f00093].

28

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.

29

Expenditure in respect of a teacher’s remuneration under section 22(2) of the 2014 Act (provision in respect of teacher remuneration where an induction period has not been completed by a teacher).

30

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

31

Expenditure in pursuance of a binding agreement, where the other party is a local authority, or 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.

32

Expenditure in respect of the functions of an appropriate body under regulations made under section 17(2)(d) of the 2014 Act[^f00094] (provision in respect of the requirement to undertake period of induction).

33

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 school’s budget share and the provision of information to governors.

34

Any expenditure on insurance other than for liability arising in connection with schools or the premises of a school.

35

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

36

Expenditure incurred in respect of non-domestic rates payable in respect of the premises of each school under section 54 of the Local Government Finance Act 1988[^f00095].

Schedule 3 — Classes or Descriptions of Planned Expenditure Which May be Deducted From the Schools Budget of a Local Authority to Determine the Individual Schools Budget

Interpretation

1

In this Schedule “the ERA 1996” means the Employment Rights Act 1996[^f00096].

Expenditure to support grants

2

Expenditure which the local authority is obliged to incur as a condition of a specific grant paid to the local authority and which is taken into account in determining the amount of such specific grant other than expenditure incurred in connection with any other paragraph of this Schedule or any paragraph of Schedule 2.

3

Any amount—

(a) the local authority is obliged to make available as a condition of—

(i) grant paid under section 14 of the 2002 Act (power for the Welsh Ministers to provide financial assistance),

(ii) a Grant by the Commission, or

(iii) grant paid under section 484 of the 1996 Act[^f00097] (education standards grants), and

(b) which is taken into account in determining the amount of such grant by the grantor, and decisions regarding the expenditure of such grant are delegated to a governing body.

Additional learning needs and other pupil needs

4

Subject to paragraphs 5 and 6, expenditure in making the provision specified in a pupil’s individual development plan that is prepared and maintained by the local authority under Part 2 of the 2018 Act except where the pupil is—

(a) a registered pupil at a special school maintained by the local authority, or

(b) a registered pupil at a maintained nursery school, primary school or secondary school maintained by the local authority who occupies one of a number of school places at those schools which are recognised by the local authority as being reserved for children with additional learning needs.

5

Where a pupil falls within paragraph 4(a) or (b) and the cost of the provision specified in the pupil’s individual development plan that is prepared and maintained by the local authority under Part 2 of the 2018 Act is significantly greater than the average cost of the provision for the other pupils at the special school or the other pupils occupying the reserved school places at the school in question, the amount by which that cost is greater.

6

Expenditure in making the provision specified in a pupil’s individual development plan that is prepared and maintained by the local authority under Part 2 of the 2018 Act where the pupil falls within paragraph 4(b) but the school places which are recognised by the local authority as being reserved for children with additional learning needs are for such pupils with visual, hearing, speech or language impairments, or other communication disorder.

7

Expenditure in respect of specialist support provided to assist the governing bodies in meeting the particular needs of pupils with an individual development plan that is prepared and maintained by the local authority under Part 2 of the 2018 Act.

8

Expenditure that it would be inappropriate to expect to be met from the school’s budget share and is for purposes connected with the encouragement of—

(a) collaboration between special schools and maintained nursery schools, primary schools and secondary schools to enable children with additional learning needs to engage in activities at maintained nursery schools, primary schools and secondary schools,

(b) the education of children with additional learning needs at maintained nursery schools, primary schools and secondary schools, and

(c) the engagement of children with additional learning needs at maintained nursery schools, primary schools and secondary schools in activities at the school with children who do not have additional learning needs.

9

Expenditure in relation to education otherwise than at school under section 19A of the 1996 Act or in relation to a pupil referral unit as defined in that section.

10

Expenditure other than expenditure incurred under Schedule 2 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.

11

Expenditure on the payment of fees under section 51 of the 2018 Act in respect of pupils with additional learning needs—

(a) at an independent school,

(b) at a school approved under section 342 of the 1996 Act, or

12

Expenditure on payments to another local authority under section 493[^f00098] or 494[^f00099] of the 1996 Act or section 207 of the 2002 Act[^f00100] (recoupment between local authorities).

Staff

13

Expenditure in making payments to, or in providing a temporary replacement for, a person—

(a) on maternity leave conferred by section 71[^f00101] or 73[^f00102] of the ERA 1996,

(b) on adoption leave conferred by section 75A[^f00103] or 75B[^f00104] of the ERA 1996,

(d) on parental leave conferred by section 76 of the ERA 1996[^f00107],

(e) on paternity leave conferred by section 80A[^f00108] or 80B[^f00109] of the ERA 1996,

(f) on bereavement leave conferred by section 80EA of the ERA 1996[^f00110], or

(g) on neonatal care leave conferred by section 80EF of the ERA 1996[^f00111].

14

Expenditure in making payments to, or in providing a temporary replacement for, a person—

(a) carrying out trade union duties or undergoing training under sections 168[^f00112] and 168A[^f00113] of the Trade Union and Labour Relations (Consolidation) Act 1992,

(b) taking part in trade union activities under section 170 of the Trade Union and Labour Relations (Consolidation) Act 1992[^f00114],

(d) undertaking jury service,

(e) who is a safety representative under the Safety Representatives and Safety Committee Regulations 1977[^f00115],

(f) who is a representative of employee safety under the Health and Safety (Consultation with Employees) Regulations 1996[^f00116],

(g) who is an employee representative for the purposes of—

(i) Chapter 2 of Part 4 of the Trade Union and Labour Relations (Consolidation) Act 1992 as defined in section 196 of that Act[^f00117], or

(ii) the Transfer of Undertakings (Protection of Employment) Regulations 2006[^f00118],

(h) taking time off for ante-natal care under section 55 of the ERA 1996[^f00119],

(i) undertaking duties as a member of the reserve forces as defined in section 1(2) of the Reserve Forces Act 1996[^f00120],

(j) suspended from working at a school,

(k) who is a member of the Education Workforce Council or a member of a committee established by that Council, or

(l) who is appointed a learning representative of a trade union by the trade union, in order for them to analyse training requirements or to provide or promote training opportunities, and to carry out consultative or preparatory work in connection with such functions.

15

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

16

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

17

Expenditure, not falling within Schedule 2, in relation to the recruitment, training, continuing professional development, performance management and personnel management of staff who are funded by expenditure not met from schools’ budget shares.

Other expenditure

18

Expenditure on the provision of tuition in musical instruments or choral instruction either to individuals or groups.

19

Expenditure on supporting travelling theatres so far as such expenditure is not covered by specific grants.

20

Expenditure in connection with the provision of Welsh language teaching by teachers who are employed to work otherwise than at a single school so far as such expenditure is not covered by specific grants.

21

Expenditure on the provision to schools of premises and facilities for sporting activities and outdoor activities including premises provided on the site of a school for the benefit of the community at large.

22

Expenditure under sections 512[^f00121], 512ZA[^f00122], 512ZB[^f00123] or 513[^f00124] of the 1996 Act which in relation to secondary schools relates to the provision of milk and in relation to any other school relates to the provision of milk or meals and other refreshment.

23

Expenditure on the repair and maintenance of a school kitchen where expenditure on meals in relation to the school concerned is deducted from the local authority’s schools budget under paragraph 22.

24

Expenditure on determining a pupil’s eligibility for free school meals.

25

Expenditure under section 18 of the 1996 Act[^f00125] 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 not maintained by any local authority.

26

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The School Funding, Budget Statements and Outturn Statements (Wales) Regulations 2026

Part 1 — General

Title, coming into force and application

1

Revocation and consequential amendments

2

Interpretation

3

Part 2 — Non-schools education budget, schools budget and individual schools budget

The non-schools education budget

4

Initial determination of schools budget

5

Schools budget

6

Individual schools budget

7

Part 3 — Schools’ Budget Shares

Allocation of individual schools budget

8

Timing and notification of initial determination of schools’ budget shares

9

Formula for determination of schools’ budget shares

10

Consultation

11

Publication of local authority formula

12

New schools

13

Percentage of “pupil-led” funding

14

Pupil numbers

15

Further requirements relating to the funding of pupils

16

Pupil numbers: dual registration

17

School places

18

Schools of a particular description

19

Differential funding

20

Additional factors or criteria

21

Funding for pupils over compulsory school age

22

School re-organisation

23

Federated schools

24

Schools’ budget share adjustments

25

Pupils permanently excluded or admitted following a permanent exclusion

26

Correction of errors

27

Arrangements approved by the Welsh Ministers

28

Part 4 — Financial Schemes

Required content of schemes

29

Manner and timing of publication

30

Approval by the schools forum or the Welsh Ministers of proposals to revise financial schemes

31

Part 5 — Budget Statements

Prescribed form of budget statements

32

Manner of publication of budget statements

33

Timing of publication of budget statements

34

Part 6 — Outturn Statements

Form of outturn statements

35

Information for outturn statements

36

Manner of publication of outturn statements