More than 60 councils have been given permission to top-slice money from school budgets to make up for cuts to a central government grant.
Councils stopped receiving the education services grant (ESG) last September, and the 2018-19 financial year is the first without transitional funding in place to soften the blow.
The money town halls received via the ESG to fulfil their legal obligations such as school place planning has been replaced in the form of a “central school services block” in the dedicated schools grant. This covers councils’ statutory duties for both maintained schools and academies.
But the general funding element of the ESG, which covered extra services specifically for maintained schools like legal costs and improvement services, is no longer paid, leaving schools to foot the bill.
Now the government has revealed that 61 councils have been given permission by their schools forums to top-slice money from maintained school budgets from this April, to cover those non-statutory duties previously paid-for by the ESG.
The councils were named this week by Nick Gibb, the schools minister, in response to a question from Liberal Democrat education spokesperson Layla Moran.
“The general funding rate of the ESG was only for the responsibilities that local authorities held for their maintained schools,” explained Gibb.
“Local authorities can fund services from the maintained school budget shares, with the agreement of the maintained school members of the schools forum, to meet these responsibilities.”
The government announced its plans to scrap the ESG at the 2015 spending review in order to save £600 million, prompting warnings that councils would struggle to support schools. Earlier this year, it was revealed that academies would lose £353 million by 2020 as a result of the cut.
A Department for Education spokesperson said it had taken the “difficult decision” to cut the ESG “in order to protect the core schools budget”.
The list of councils given permission to top-slice is as follows
Camden
York
Lambeth
Bedford Borough
Southwark
Buckinghamshire
Tower Hamlets
Derbyshire
Wandsworth
Poole
Bexley
Hampshire
Brent
Portsmouth
Ealing
Staffordshire
Havering
Swindon
Hillingdon
Bracknell Forest
Hounslow
West Berkshire
Merton
Reading
Waltham Forest
Cambridgeshire
Sandwell
Peterborough
Solihull
Halton
Wolverhampton
Torbay
Knowsley
Essex
Sefton
Herefordshire
Wirral
Medway
Manchester
Blackburn with Darwen
Trafford
Blackpool
Wigan
Shropshire
Doncaster
Telford and Wrekin
Leeds
Cornwall
Wakefield
Gloucestershire
Newcastle upon Tyne
Hertfordshire
North Somerset
Isle of Wight
Hartlepool
Somerset
Redcar and Cleveland
Surrey
Kingston upon Hull
West Sussex
North Lincolnshire
Given that Schools Forum consent was sought, perhaps an alternative headline might have been ‘Schools band together to procure services’ – an approach which actually meets the government’s efficiency agenda…..
I’m puzzled. Didn’t LAs always retain some of the funding awarded to maintained schools to pay for admin and legal services? One of the selling points of academies was that academies would be able to keep this top slice.
Hi Janet
Schools have for some time bought back services like finance, HR, Legal, ICT etc but only where they are delegated school functions which they didn’t want to do themselves.
ESG was for statutory duties that the LA had to do behind the scenes for LA schools. Page 44 onwards of the Operational Guidance for 2018/19 contains a useful table that explains these: https://bit.ly/2sXliUm .
The first column is the former Retained Duties ESG and the second is the General ESG which also went to academies. The latter was cut for academies at the same time as the LA grant, except that academies already in receipt of protection have continued to receive it on a tapering basis.
I have no idea why DfE thought it was a good idea to withdraw a grant and put LAs in the situation of having to go cap in hand to schools for the money to replace it, when these are statutory duties that the LA cannot refuse to do! Authorities that haven’t asked schools for money must have found it from Council funding, as these items can’t be charged to the Schools Block.
Julie – thanks for the info. I’ve had a look at the operational guidance. I thought I was well informed about educational matters but I found the guidance so detailed as to be confusing. (Perhaps I read it too early on a Saturday morning).
A cynic might say the withdrawal of a grant and the publication of detailed ‘guidance’ might be a ploy to allow the DfE to deflect complaints about school funding by saying such-and-such is an LA responsibility (while at the same time slashing overall funding for LAs). But I couldn’t possibly comment.