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

• “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 Act⁹⁰.

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

• (c) local authority schools to other persons or institutions.

26

Expenditure on monitoring the curriculum assessment arrangements required by regulations made under Part 4 of the 2021 Act⁹¹.

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 Act⁹² or in the reconsideration and preparation of an agreed syllabus of Religion, Values and Ethics in accordance with Schedule 31 to the 1996 Act⁹³.

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 Act⁹⁴ (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 1988⁹⁵.

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 1996⁹⁶.

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 Act⁹⁷ (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

• (c) at an institution outside England and Wales, under section 59 of the 2018 Act.

12

Expenditure on payments to another local authority under section 493⁹⁸ or 494⁹⁹ of the 1996 Act or section 207 of the 2002 Act¹⁰⁰ (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 71¹⁰¹ or 73¹⁰² of the ERA 1996,

• (b) on adoption leave conferred by section 75A¹⁰³ or 75B¹⁰⁴ of the ERA 1996,

• (c) on shared parental leave conferred by section 75E¹⁰⁵ or 75G¹⁰⁶ of the ERA 1996,

• (d) on parental leave conferred by section 76 of the ERA 1996¹⁰⁷,

• (e) on paternity leave conferred by section 80A¹⁰⁸ or 80B¹⁰⁹ of the ERA 1996,

• (f) on bereavement leave conferred by section 80EA of the ERA 1996¹¹⁰, or

• (g) on neonatal care leave conferred by section 80EF of the ERA 1996¹¹¹.

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 168¹¹² and 168A¹¹³ 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 1992¹¹⁴,

• (c) performing public duties under section 50 of the ERA 1996,

• (d) undertaking jury service,

• (e) who is a safety representative under the Safety Representatives and Safety Committee Regulations 1977¹¹⁵,

• (f) who is a representative of employee safety under the Health and Safety (Consultation with Employees) Regulations 1996¹¹⁶,

• (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 Act¹¹⁷, or

• (ii) the Transfer of Undertakings (Protection of Employment) Regulations 2006¹¹⁸,

• (h) taking time off for ante-natal care under section 55 of the ERA 1996¹¹⁹,

• (i) undertaking duties as a member of the reserve forces as defined in section 1(2) of the Reserve Forces Act 1996¹²⁰,

• (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 512¹²¹, 512ZA¹²², 512ZB¹²³ or 513¹²⁴ 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 Act¹²⁵ 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

Expenditure in connection with the provision of nursery education except where such provision is made at a maintained school.

27

Expenditure on insurance in respect of liability arising in connection with schools and school premises except to the extent that governing bodies receive funding for insurance as part of their school’s budget shares.

28

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

29

Expenditure incurred in responding to a report of a school inspection under section 28 of the Education Act 2005¹²⁶.

30

Expenditure on library services and museum services for schools.

31

Expenditure—

• (a) without which the education of pupils at a school would be seriously prejudiced, and

• (b) which it would not be reasonable to expect a governing body to meet from the school’s budget share because of either—

• (i) its size and unexpectedness, or

• (ii) its size and unavoidability.

32

Expenditure on increases to a school’s budget share to which the school is entitled by virtue of the local authority’s formula or the re-determination of schools budget shares under the authority of the Welsh Ministers or expenditure on the correction of errors.

33

Expenditure for 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.

34

CERA incurred for purposes not falling within any other paragraph of this Schedule or Schedule 2.

35

Expenditure incurred under section 22 of the Education (Wales) Measure 2011 in the training of governors to enable the effective discharge of their functions in so far as this is not provided by specific grants.

36

Expenditure incurred under section 24 of the Education (Wales) Measure 2011 in relation to the training of clerks to the governing bodies to enable the effective discharge of their functions.

Schedule 4 — Content of Financial Schemes

The matters referred to in regulation 29

1

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

2

The identification of all the classes or descriptions of expenditure which form part of the local authority’s schools budget but will not form any part of the individual schools budget and will instead be retained by the local authority.

3

Amounts which may be charged against schools’ budget shares.

4

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

5

The imposition of conditions, including conditions prescribing financial controls and procedures, by or under the financial scheme which must be complied with by schools in relation to the management—

• (a) of their delegated budgets, and

• (b) of sums made available to governing bodies by the local authority which do not form part of delegated budgets.

6

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

7

The payment of interest by or to the local authority.

8

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

9

The virement between budget heads within the delegated budget.

10

Circumstances in which the local authority may delegate to a governing body the power to spend any part of the local authority’s non-schools education budget or schools budget in addition to those set out in section 49(4)(a) to (c) of the 1998 Act¹²⁷.

11

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

12

Borrowing by governing bodies.

13

The banking arrangements that may be made by governing bodies.

14

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

15

A statement as to the allowances payable to governors of a school which does not have a delegated budget in accordance with the financial scheme made by the local authority for the purposes of section 519 of the 1996 Act¹²⁸.

16

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

17

The provision of information by and to the governing body.

18

The maintenance of inventories of assets.

19

Plans of a governing body’s expenditure.

20

A statement as to the use that a governing body proposes to make of any surplus brought forward from the funding period immediately preceding the current funding period where that surplus exceeds 5% of the school’s budget share in the current funding period.

21

A statement setting out how the local authority will monitor the use by a governing body of the surplus included in any statement made under paragraph 20.

22

A provision under which—

• (a) the local authority may direct a governing body as to how to spend any surplus brought forward from the previous funding period in the school balance for a funding period, if the surplus exceeds 5% of the school’s budget share, and

• (b) the local authority may, if a governing body does not comply with such a direction, require the governing body to pay all or part of that surplus to the local authority to be applied as part of its schools budget for the funding period in question.

23

• (1) A provision requiring a governing body to submit to the local authority for approval by the local authority a plan to recoup any deficits arising in relation to schools’ budget shares (“deficit recovery plan”).

• (2) A statement setting out in relation to a draft deficit recovery plan—

• (a) by when a draft plan must be submitted by the governing body to the local authority for approval,

• (b) the details including the address of where a deficit recovery plan should be sent by the governing body,

• (c) the form and matters to be dealt with in a deficit recovery plan,

• (d) the duration of a draft deficit recovery plan,

• (e) how long the local authority is allowed to take to consider a draft deficit recovery plan,

• (f) the consequences of not submitting a draft deficit recovery plan to the local authority,

• (g) any requirements to review and amend the approved deficit recovery plan, and

• (h) the consequences of not complying with an approved deficit recovery plan.

24

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

25

Insurance.

26

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

27

The provision of legal advice to the governing body.

28

Funding for child protection issues.

29

School meals.

30

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

31

Expenditure incurred by a governing body in the exercise of the power conferred by section 27 of the 2002 Act¹²⁹ (power of governing body to provide community facilities etc.).

32

Provision by governing bodies of returns and information for teacher pensions’ purposes.

33

The scale the local authority is required to publish under regulation 21(4).

Schedule 5 — Part 1 of a Budget Statement

Part 1 — General

1

Part 1 of a budget statement (information at school level) must be in the form set out in Part 2 of this Schedule and in accordance with the notes set out in Part 3 of this Schedule.

2

Both the English and Welsh versions of the form must be completed.

3

The font size used must not be less than 7pt.

4

• (1) The following information must appear at the top of each Part of a budget statement—

• (a) in column (a) enter the funding period to which the budget statement relates,

• (b) in column (b) enter the version number or the number “1” if it is the first version,

• (c) in column (c) enter the date that the form was completed,

• (d) in column (d) enter the local authority’s name, and

• (e) in column (e) enter the local authority’s unitary reference number.

• (2) In this paragraph “version number” means a number which distinguishes a particular form submitted by the local authority from earlier versions of the form submitted by them.

5

The numbered notes in Part 3 of this Schedule refer to the items in the table bearing the corresponding number in the form.

6

Where a local authority does not intend to make any financial provision for any matter listed in the form a zero must be entered at the appropriate place.

Part 2 — Form

Part 3 — Notes to Part 1 of a Budget Statement

1

Enter in column (1) the names of all schools maintained or to be maintained by the local authority in the funding period in the following order—

• (a) maintained nursery schools;

• (b) primary schools;

• (c) middle schools;

• (d) secondary schools;

• (e) special schools.

2

Opposite the name of each maintained school, enter in column (2) that school’s reference number.

3

Enter in column (3) the date that the maintained school is intended to close or to open, as the case may be; otherwise leave blank.

4

Enter in column (4), opposite the name of each maintained school, the letter “C” if the school is to close during the funding period and the letter “O” if the school is to open during the funding period; otherwise leave blank.

5

• (1) Enter in column (5), opposite the name of each maintained school—

• (a) the number of registered pupils at the school required under the formula to be used for the initial determination of that school’s budget share, and

• (b) the number of school places reserved for pupils in a nursery class or for pupils with additional learning needs and funded as such under the formula.

• (2) In the case of a maintained school that will be open for part of the year only, the number determined in accordance with sub-paragraph (1)(a) or (b) of this note must be reduced to reflect the proportion of the year that the school is to open. For example, if a maintained school is expected to open for 7 months of the funding period, the number shown should be the number of pupils multiplied by 7, then divided by 12.

6

• (1) Enter in column (6), opposite the name of each maintained school, the amount allocated by the local authority to each school from the Core Delegation.

• (2) For maintained schools only open for part of the year, the actual school’s budget share given to the school should be shown.

7

• (1) Enter in column (7), opposite the name of each maintained school, the amount allocated by the local authority to each school from the Discretionary Delegation.

• (2) For maintained schools only open for part of the year, the actual school’s budget share given to the school should be shown.

8

• (1) Enter in column (8), opposite the name of each maintained school, the amount allocated by the local authority to each school from the Additional Learning Needs Delegations.

• (2) For maintained schools only open for part of the year, the actual school’s budget share given to the school should be shown.

9

• (1) Enter in column (9), opposite the name of each maintained school, the total of the school’s delegation from Core Delegation, the Discretionary Delegation and the Additional Learning Needs Delegations being the whole of the school’s budget share.

• (2) For maintained schools only open for part of the year, the actual school’s budget share given to the school should be shown.

10

Enter in column (10), opposite the name of each maintained school, the amount allocated by the local authority per pupil or school place at the school from the Core Delegation plus the Additional Learning Needs Core Delegation calculated by dividing the total amount by the number of pupils or school places for the school entered in accordance with note 5.

11

Enter in column (11), opposite the name of each maintained school, the amount allocated by the local authority per pupil or school place at the school from the Discretionary Delegation plus the Additional Learning Needs Discretionary Delegation calculated by dividing the total amount by the number of pupils or school places for the school entered in accordance with note 5.

12

Enter in column (12), opposite the name of each maintained school, the total delegation per pupil or school place at the school calculated by dividing the amount entered in accordance with note 9 by the number of pupils or school places for the school entered in accordance with note 5.

13

Enter in column (13), opposite the name of each maintained school, the non-individual budget devolved to schools being the amount of planned additional indicative funding (including grants) proposed to be allocated to the school otherwise than as part of the school’s budget share.

14

• (1) Enter in column (14), opposite the name of each maintained school, an estimated determination of the total of the school’s budget share for year 2 being the first funding period which immediately follows the current funding period.

• (2) For maintained schools only open for part of the year, an initial determination of the actual school’s budget share for the school should be shown.

15

• (1) Enter in column (15), opposite the name of each maintained school, an estimated determination of the total of the school’s budget share for year 3 being the second funding period which immediately proceeds the first funding period.

• (2) For maintained schools only open for part of the year, an initial determination of the actual school’s budget share for the school should be shown.

• (3) In this paragraph the “first funding period” has the meaning given to it in note 14(1).

16

Enter in line (16) in each of columns (5) to (9) and (13) to (15), the total of the numbers entered in each of those columns in respect of maintained nursery schools, and in columns (10) to (12), the average of the numbers entered in those columns in respect of maintained nursery schools.

17

Enter in line (17) in each of columns (5) to (9) and (13) to (15), the total of the numbers entered in each of those columns in respect of primary schools, and in columns (10) to (12), the average of the numbers entered in those columns in respect of primary schools.

18

Enter in line (18) in each of columns (5) to (9) and (13) to (15), the total of the numbers entered in each of those columns in respect of middle schools, and in columns (10) to (12), the average of the numbers entered in those columns in respect of middle schools.

19

Enter in line (19) in each of columns (5) to (9) and (13) to (15), the total of the numbers entered in each of those columns in respect of secondary schools, and in columns (10) to (12), the average of the numbers entered in those columns in respect of secondary schools.

20

Enter in line (20) in each of columns (5) to (9) and (13) to (15), the total of the numbers entered in each of those columns in respect of special schools, and in columns (10) to (12), the average of the numbers entered in those columns in respect of special schools.

21

Enter in line (21) in each of columns (5) to (9) and (13) to (15), the total of the numbers entered in each of those columns in respect of all maintained schools, and in columns (10) to (12), the average of the numbers entered in those columns in respect of all maintained schools.

22

Enter in column (22) the amount of the individual schools budget not allocated to maintained schools in columns (9) and (12), giving an estimated split between maintained nursery schools, primary schools, middle schools, secondary schools and special schools.

23

Enter in column (23) the total amount of funding of the kind referred to in note 13 and which the local authority intends to allocate to maintained schools but which is not allocated at the beginning of the funding period, giving an estimated split between maintained nursery schools, primary schools, middle schools, secondary schools and special schools.

24

Enter in line (24) in each of columns (22) and (23), the total of the numbers entered in each of those columns.

25

Enter in line (25) the total of the numbers in line (21) of column (9) and in line (24) of column (22).

26

Enter in line (26) the total of the numbers in line (21) of column (13) and line (24) of column (23).

Schedule 6 — Part 2 of a Budget Statement

PART 1 — General

1

Part 2 of a budget statement (information about the formula) must be in the form set out in Part 2 of this Schedule and in accordance with the notes set out in Part 3 of this Schedule.

2

Both the English and Welsh versions of the form must be completed.

3

The font size used must not be less than 7pt.

4

• (1) The following information must appear at the top of each Part of a budget statement—

• (a) in line (a) of column (a) enter the funding period to which the budget statement relates,

• (b) in line (b) of column (a) enter the version number or the number “1” if it is the first version,

• (c) in line (c) of column (a) enter the date that the form was completed,

• (d) in line (d) of column (a) enter the local authority’s name,

• (e) in line (e) of column (a) enter the local authority’s unitary reference number,

• (f) in line (f) of column (a) enter the name of the maintained school,

• (g) in line (g) of column (a) enter the school’s reference number, and

• (h) in line (h) of column (a) enter the type of delegation being the Core Delegation, the Discretionary Delegation, the Additional Learning Needs Delegations, the Additional Learning Needs Core Delegation, Additional Learning Needs Discretionary Delegation or the Total Delegation to which the form relates.

• (2) In this paragraph “version number” means a number which distinguishes a particular form submitted by the local authority from earlier versions of the form submitted by them.

5

The numbered notes in Part 3 of this Schedule refer to the items in the table bearing the corresponding number in the form.

6

A local authority may include as an Annex to the form set out in Part 2 of this Schedule any relevant information in addition to that required to be included in the form.

7

Where a local authority does not intend to make any financial provision for any matter listed in the form, a zero must be entered at the appropriate place.

8

• (1) A local authority must for each school and type of school set out in sub-paragraph (2) complete a separate form for each of the delegated budgets set out in sub-paragraph (3).

• (2) The school or types of school referred to in sub-paragraph (1) are—

• (a) each maintained school it maintains giving total amounts for just that school,

• (b) all maintained schools it maintains giving total amounts for all such schools,

• (c) the maintained nursery schools sector it maintains giving total amounts for all of that type of school,

• (d) the special schools sector it maintains giving total amounts for all of that type of school,

• (e) the primary schools sector it maintains giving total amounts for all of that type of school,

• (f) the middle schools sector it maintains giving total amounts for all of that type of school, and

• (g) the secondary schools sector it maintains giving total amounts for all of that type.

• (3) The delegated budgets referred to in sub-paragraph (1) are—

• (a) the Core Delegation,

• (b) the Discretionary Delegation,

• (c) Additional Learning Needs Delegations,

• (d) the Additional Learning Needs Core Delegation,

• (e) the Additional Learning Needs Discretionary Delegation, and

• (f) the Total Delegation.

PART 2 — Form

PART 3 — Notes to Part 2 of a Budget Statement

Individual maintained schools budget: funding factors

1

Enter in column (1) consecutive line numbers to ease identification of each funding factor described in column (2).

2

• (1) Enter in column (2) a brief description of each funding factor used in the local authority’s formula.

• (2) Use an ‘*’ as the first character in the description of each and every factor that is based on a pupil’s eligibility for free school meals, or a pupil’s residency in relation to the Welsh Index of Multiple Deprivation.

• (3) Insert additional lines as required to accommodate all the factors in use.

3

Enter in column (3) the value per unit of measurement for each factor.

4

Enter in column (4) the number of units of measurement for each factor.

5

Enter in column (5) the total funding allocated for each factor as the figure in column (3) multiplied by the figure in column (4).

6

Enter in column (6) as a percentage the proportion of the total budget which is entered in line (12) represented by the value in column (5).

7

Enter in line (7) of column (4) the number of registered pupils at the maintained school required under the formula to be used for the initial determination of that school’s budget share and in line (7) of column (5) enter the total funding allocated according to those pupil numbers in accordance with regulation 15.

8

Enter in line (8) of column (4) the total number of school places and in line (8) of column (5) enter the total funding allocated according to school places.

9

Enter in line (9) of column (5) the total funding allocated according to other factors relating to pupil-led funding.

10

Enter in line (10) of column (5) the total pupil-led funding.

11

Enter in line (11) of column (5) the total funding allocated according to other factors specific to the maintained school.

12

Enter in line (12) of column (5) any budget adjustments. For example, this could include retrospective adjustments in relation to the previous funding period and school-by-school variation around a formulaic average for the local authority with a net zero value at local authority level.

13

Enter in line (13) of column (5) the total delegated budget.

Signed

Lynne Neagle — Cabinet Secretary for Education, one of the Welsh Ministers — 4 March 2026

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations revoke and replace the Education (Budget Statements) (Wales) Regulations 2002, the Education (Outturn Statements) (Wales) Regulations 2003 and the School Funding (Wales) Regulations 2010 in relation to financial years that commence on or after 1 April 2027. These Regulations make provision for the funding of maintained schools in Wales for those financial years.

Part 1 contains the introductory, revocation and interpretation provisions.

Part 2 deals with the non-schools education budget, the schools budget and the individual schools budget.

Regulation 4 and Schedule 2 set out the expenditure that constitutes the non-schools education budget. This budget relates to the expenditure on local authority functions that the local authority must retain centrally.

Regulation 5 requires the local authority to make an initial determination of the schools budget on or before 14 February immediately preceding a funding period. A “funding period” is defined in section 45(1B) of the School Standards and Framework Act 1998 (“the 1998 Act”) to mean a financial year or such other period as may be prescribed. These Regulations define “funding period” to mean a financial year within the meaning given to that term in section 579(1) of the Education Act 1996.

Regulation 6 defines the schools budget. The schools budget relates to the expenditure that is aimed at supporting schools.

Regulation 7 requires the individual schools budget to be determined on or before 14 February immediately preceding a funding period. A funding period is a financial year. The individual schools budget is defined in regulation 7 and Schedule 3. The individual schools budget is formed by deducting any or all of the expenditure items set out in Schedule 3 from the schools budget. It is for the local authority to decide what expenditure items from Schedule 3 to deduct from the schools budget. Whatever is left remaining in the schools budget after that exercise will form the individual schools budget.

It is a matter for the local authority to determine what to do with the expenditure items deducted from the schools budget and which are not allocated to its individual schools budget. A local authority may determine to retain those expenditure items centrally so that it will be responsible for meeting the cost of them. Alternatively, a local authority may determine to allocate those expenditure items to maintained schools. In which case the local authority will also allocate the funding for those expenditure items to maintained schools who will then be responsible for meeting the cost of them.

Part 3 deals with schools’ budget shares. Regulation 8 requires the individual schools budget to be allocated as budget shares to maintained schools. This means that the individual schools budget must be divided up into school’s budget shares with each maintained school receiving a budget share. Regulation 9 requires an initial determination of the amount of a school’s budget share to be made on or before 31 March preceding a funding period. Regulation 9 further requires the local authority to notify school governing bodies of the amount of their budget shares together with information about how the budget share was calculated and estimates of the budget shares for the following two funding periods.

Regulation 10 requires a local authority to determine a formula for the budget shares. Regulation 11 requires consultation on any changes made to the formula since the preceding funding period. Regulation 12 sets out how a local authority formula is to be published.

Regulation 13 makes provision for the delegated budget of a new school.

Regulations 14 to 26 set out the factors and criteria to be taken into account in determining schools’ budget shares. Regulation 24 makes new provision which allows a local authority to allocate a single budget share to the governing body of the federation and treat the schools as a single school for that purpose.

Regulation 27 allows a local authority to redetermine a school’s budget share in order to correct errors, and regulation 28 allows the Welsh Ministers to approve alternative arrangements to determine schools’ budget shares.

Part 4 deals with local authorities’ financial schemes. Regulation 29 and Schedule 4 specify the matters that must be dealt with in financial schemes.

Regulation 30 sets out how revised financial schemes are to be published and regulation 31 requires any revisions to be approved by the schools forum or the Welsh Ministers.

Part 5 deals with the information about a local authority’s expenditure on education which must be contained in the statement of planned expenditure (“budget statement”) which each local authority is required to prepare before the beginning of each funding period under section 52(1) of the 1998 Act.

In sections 45, 45A, 47 and 48 of the 1998 Act the term “funding period” is used rather than the term “financial year”. Section 45 of the 1998 Act defines “funding period” to mean a financial year or such other period as may be prescribed. However, in section 52(1) of the 1998 Act the term “financial year” is used. For the sake of consistency these Regulations use the term “funding period” throughout. These Regulations define “funding period” to mean a financial year within the meaning given to that term in section 579(1) the Education Act 1996.

Regulation 32 requires that every budget statement must be prepared in two parts as follows—

Regulations 33 and 34 set out how a local authority budget statement is to be published.

Part 6 deals with the information about local authorities’ expenditure on education which must be contained in a statement (“outturn statement”). Each local authority is required to prepare after the end of each funding period an outturn statement by section 52(2) of the 1998 Act.

Regulation 35 specifies the form which outturn statements must take.

Regulation 36 specifies the information to be included in the outturn statement.

Regulations 37 and 38 set out how a local authority outturn statement is to be published.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the School Funding Branch, Education Infrastructure, Governance and Finance Division, Welsh Government, Cathays Park, Cardiff, CF10 3NQ.

Footnotes