Guidance

Section 251 budget guidance

Updated 17 October 2024

Applies to England

Summary

About this departmental advice

Local authorities are required, under section 251 of the Apprenticeships, Skills, Children and Learning Act 2009, to prepare and submit an education and children and young people’s services budget statement to the Secretary of State for Education not later than 7 June 2024 for the prescribed period. The prescribed period for this budget statement covers 1 April 2024 to 31 March 2025.

If a local authority fails to submit its budget return by 7 June 2024, or does not exercise its functions properly, the Department for Education (DfE) can exercise its powers of intervention under paragraphs 496 and 497 of the Education Act 1996. In addition, DfE may discount any late budget statements from publication due to the reduced time to validate the data.

Separate guidance applies to the preparation of the outturn statement.

Regulatory provisions directly affecting the education content of these budget statements are also made in the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024.

Where guidance material in this document is interpreted in such a way as to conflict with any regulations currently in force, those regulations take precedence.

Expiry or review date

This advice applies to the returns for the financial year 2024 to 2025.

Who this publication is for

This advice is for local authority finance officers.

Introduction

Purpose of financial statements

Local authorities have a statutory duty to publish their budget statements as and when prescribed in the administrative direction issued by the Secretary of State for Education. A separate administrative direction and guidance apply to outturn statements.

The copy of the statement that schools receive for that period is intended to provide a clear picture of the local authority’s planned spending. This includes how much the local authority intends to spend on:

• the schools budget
• de-delegated items
• the high needs budget
• the early years’ budget
• central provision within the schools budget
• children and young people’s services

It is important that schools forums and other stakeholders can compare funding between different local authorities, to allow for an informed debate about budget levels and use of funds. It is, therefore, essential that all statements are prepared to a common format and are accurate.

The statements are used by DfE for publishing statistics, constructing benchmarking tables for local authorities, and answering parliamentary questions and other requests for data.

Format and content of statements

The administrative direction sets out the Secretary of State’s requirements for this data collection. Additional information or supplementary notes should be provided as necessary, but separate to the statement itself. This can either be in the form of an additional annex or in the notes section of the template/proforma. The funding data and financial monitoring (FDFM) team are happy to provide advice on what form any additional information should take.

You will be alerted when cells have been left blank. If you have no planned expenditure, zeros must be entered; dashes or other characters must not be used, and cells must not be left blank.

Both the system and proforma will, where appropriate, validate the figures at source or carry out calculations (this is done within the template). This saves you time when completing the tables and also for those receiving them. The FDFM team will, however, follow up on any additional data validation issues with the relevant authorities at a later date.

It is extremely important that you complete your data entry as accurately as possible. It is also important that you take every opportunity to review and revise your data once the FDFM team undertakes the data validation process.

Direct payments to academies

Direct payments by local authorities to academies must be recorded in the section 251 tables. For example, special educational needs (SEN) funding paid by the local authority for top-up funding for individual pupils in academies needs to be included in the appropriate SEN lines.

FRS17

These tables should not be completed on an FRS17 or IAS19 basis. Funding for schools should reflect what is actually paid in-year.

Submitting the budget statement

Local authorities can return their statements by either:

• manually entering data into COLLECT – we will notify you when the system goes live
• uploading their data to COLLECT in XML format – we have made guidance available for using COLLECT to complete your budget statement

Guidance on using COLLECT to submit your budget statement is available.

Technical help with the COLLECT system

Requests for technical help with entering your data, or how to use the COLLECT system or proforma should be directed to the data collections helpdesk via the data collections service request form

Revised statements

We can only accept revised statements if amendments are made as a result of errors being identified and corrected.

Any revised versions should reflect the situation as of 7 June 2024.

If in doubt, please email;

[email protected]

to discuss this.

Publishing the budget statement

A copy of the budget statement must be made available:

• to every school maintained by the local authority. If a school does not have access to the internet, the local authority must provide a hard copy of each budget statement, including table 1 (local authority information covering de-delegated items, high needs budget, early years budget and children’s social care), table 2 (high needs – special and alternative provision (AP) – settings), and the early years proforma, to the governing body and headteacher
• to those private, voluntary and independent (PVI) providers who are funded to provide free early provision to 3 and 4-year-olds and children aged 2 and under – the local authority must show how they can access a copy of the budget statement
• to the general public – the local authority must make a copy of the whole statement available at their education offices (where a copy must be available for inspection by parents and others in the community at all reasonable times and free of charge)
• on a website – the local authority must make a copy of the whole statement available on a website which is maintained by the local authority and accessible by the public

Where local authorities adjust their tables to suit their own local publishing standards, all headings for categories and items of expenditure must be listed, whether or not they are relevant to their expenditure activity in the year. Local authorities should ensure that when adapting tables for local publication, no font size used in the finished publication is less than 7 pt. and no shading or colouring is used. Otherwise, figures might become unreadable when tables have to be photocopied.

Once you have entered your data, you will be able to produce reports for publishing from the COLLECT system. The budget statement must then be published and presented in 3 parts, for the prescribed period. The tables should appear on the local authority’s website in the following order:

1. Table 1: local authority level information provides an overall picture of the funding being allocated directly to schools, the amount being spent on education centrally and the amount being spent on children’s and young people’s services.
2. Table 2: lists the high needs place numbers and funding in each maintained setting.
3. Early years proforma: this provides a format for local authorities to record details of their early years local funding formulae for: 3 and 4-year-old free entitlements (the universal 15 hours and additional 15 hours for working parents); the 2-year-old disadvantaged entitlement; the 15 hours entitlement for eligible working parents of 2-year-old children (new entitlement from 1 April 2024); and the 15 hours entitlement for eligible working parents of children from 9 months to 2 years old (new entitlement from 1 September 2024).

Local authorities will also need to confirm their planned budget for the SEN inclusion fund top-up grant, early years pupil premium (EYPP), and the disability access fund (DAF) for each of the separate entitlements.

We publish information and section 251 data reports from local authorities regularly. These can be found in the section 251 documents collection.

Main changes for 2024 to 2025 

The early years section has been updated as the proforma has changed.  

1.4.11 SEN transport

This line has been updated to add that SEN transport costs within the dedicated schools grant (DSG) can only be included on this line or line 1.2.11 Direct payments (SEN and disability) and must not be recharged to other lines.

Advice on the regulations and guidance

For advice on the contents of the regulations and guidance, local authorities should contact the FDFM team at:

[email protected]

Notes on completing the local authority table

General principles

Budget statements give details of planned expenditure for the school sectors. What should be included in each section is set out below.

Early years column

Includes the free entitlement in maintained nursery schools, nursery classes and PVI providers (including childminders). It, therefore, must include the total expenditure provided through the local early years provider funding formulae for:

• the 15 hours entitlement for eligible working parents of children from 9 months to 2 years old (new entitlement from 1 September 2024)
• the 15 hours entitlement for eligible working parents of 2-year-old children (new entitlement from 1 April 2024)
• the 15-hour entitlement for disadvantaged 2-year-olds
• 3 and 4-year-olds entitlements for both the universal 15 hours and additional 15 hours for eligible working parents

Also include other relevant expenditure on early years children, including the:

• special educational needs inclusion fund top-up grant
• EYPP
• DAF

In this column include everything funded from the DSG early years block relating to children under 5 who are not in reception classes.

Nothing for this age range should appear in the primary column.

Primary column

Includes, first, infants, juniors and middle-deemed primary schools plus funding for units attached to them, such as immigrant centres, and special units and resourced provision for pupils with SEN attached to primary phase schools. This must exclude all expenditure within the early years single funding formula.

Pre-16 funding should be compatible with what has been submitted in the authority proforma tool (APT).

Secondary column

Includes secondary and middle-deemed secondary schools. Include funding for all special units and resourced provision attached to secondary schools. Include funding for sixth forms in schools.

Pre-16 funding should be compatible with what has been submitted in the APT.

All-through schools should be apportioned between phases and between the appropriate columns, using the split shown on the authority proforma tool as a basis.

Special schools column

This covers special schools and special academies, including those hospital schools that are a type of special school. Do not include funding for special education units attached to, or resourced provision in, mainstream schools.

AP/PRUs column

This covers pupil referral units (PRUs), AP academies and other alternative provision made under section 19 of the Education Act 1996, including hospital education provision in PRUs and AP academies.

Post-school column

This covers further education (FE) colleges, sixth form colleges, independent colleges, special post-16 institutions and other post-16 providers that do not provide for pupils of compulsory school age, including 16 to 19 maintained schools and academies.

Gross total of all the columns

The figures entered in each individual column should be gross figures - that is actual total estimated costs of the activities before allowance for any expected income, but after allowing for any ‘buyback’ income from the local authority’s own schools to avoid double counting. Both expenditure and income should be excluded where maintained schools or recoupment academies within the local authority’s area are buying services. This column should be the total of the previous columns.

Income column

This column should be used for indicating any estimated income the local authority expects to be able to offset against gross expenditure on an activity. This will only include central government grants if they are additional to the DSG and to funding from ESFA for post-16 provision. Other grants that should be excluded are universal infant free school meals (UIFSM), PE and sport funding, and public health grant. This should also exclude internal departmental recharges and DSG recharges. Income sources could include private sources, other local authorities’ fees, charges paid by parents (such as meals, music, board/lodging) and lettings.

Income from schools and academies should not be shown as income, because the expenditure is already within the individual schools budget (ISB) and this would result in double-counting.

Net column

This column will be calculated automatically.

Where a local authority is paying a contractor to carry out functions on its behalf, then the local authority must include budget information relating to these functions in its statement (the amount paid to the contractor by the local authority). Payments under the contract should be apportioned to the relevant functions.

The ISB is allocated to schools without reference to income accruing to schools. Any interest earned on schools’ balances should be excluded from these budget statements.

For overheads associated with ‘buyback’, where delegation is required (that is, where an item falls within the schools budget but is not included in Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024) the amount to be delegated should be determined on a full-cost basis inclusive of overheads. Where a local authority has voluntarily chosen to delegate funding for an item that it could have funded centrally, it is for the local authority to determine the extent to which overheads should be taken into account.

All the financial information in the budget statement should be represented in pounds and not in thousands.

The Education Support Grant (ESG) for local authorities ceased with effect from September 2017. The treatment of services formerly funded through ESG is discussed in the section ‘Central provision within schools budget (former ESG retained duties)’.

Defining what is chargeable to the schools budget

Items that may be charged to the schools budget are set out in regulations 6 and 8 of Part 2 and in Schedule 2 of the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024. Schedule 1 items cannot be included in the schools budget and therefore must, by definition, be in lines 2.1.1 onwards. The DSG is intended to meet the educational costs of pupils in primary and secondary education, as well as the costs of special educational provision for children and young people with SEN in post-16 provision, including those aged over 19 who have an education, health and care (EHC) plan. The DSG may not be used for purposes other than those specified in the regulations.

Administrative costs and overheads attributable to a particular category of expenditure that regulations allow to be charged to the schools budget should in general be included under the appropriate item heading, if necessary, suitably apportioned between school types. This may include expenditure in relation to the following:

• ensuring payments are made in respect of taxation, National Insurance and superannuation contributions
• recruitment, training, continuing professional development, performance management and personnel management of staff
• investigation and resolution of complaints
• legal services related to education functions

Except in the case of permitted spend on prudential borrowing and capital expenditure from revenue (CERA), capital charges should not appear in this table in any form. However, back pay that is capitalised through the Department for Levelling Up, Housing and Communities (DLUHC) should be included. If funded from the central DSG, then it should appear on line 1.4.9, Equal pay – back pay. If charged to delegated school budgets, then it will fall within the ISB total.

In the majority of cases, educational provision will be delivered in schools or colleges. However, in some cases, specific types of health or social care provision may be considered as educating or training. This particularly applies to therapies such as speech and language therapy, physiotherapy and occupational therapy.

The Children and Families Act 2014 requires that health or social care provision which educates or trains a child or young person must be treated as special educational provision. This means that it will be recorded in section F of an EHC plan and will be treated as special educational provision. It is therefore in scope of the high needs budget. However, all decisions about whether health care provision or social care provision should be treated as special educational provision must be made on an individual basis.

Case law from the First-tier Tribunal has established that only the specific elements of health or social care provision which educate or train can be considered as special educational provision. The fact that health or social care provision is intended to support a child or young person to access learning, for example, does not mean that it should be considered as special educational provision.

Schools budget

1.0.1 Individual schools budget (before academy recoupment), including sixth form grant for maintained schools, but excluding high needs place funding

Within the schools budget, the amount available for delegation to schools after provision has been made for retained items is known as the ISB. The same figure will appear in the ‘gross’ and the ‘net’ columns. Note that the ISB continues to include funding for school business rates (national non-domestic rates (NNDR)), despite the change from 2022 to 2023 in how these are actually paid.

This line should include funding that the local authority would have made available to primary and secondary academies funded through recoupment, as if it was still funding them. The corresponding expected recoupment should be entered in line 1.10.1.

Funding for maintained secondary schools and PRUs with sixth forms should include funding for the pupils in the sixth forms. Funding for the sixth form pupils in academies should not be included since that does not pass through the local authority.

Places in mainstream schools that are not in a special unit or resourced provision should be included in line 1.0.1. Top-up and other high needs funding for these schools should not be included in this line as they form part of the high needs budget (section 1.2).

Please note that line 1.0.1 is to be shown net of any de-delegated funding that appears in lines 1.1.1 to 1.1.9, and any central provision funded from the budgets of maintained schools that appears in lines 1.6.1 to 1.6.7.

Free entitlements for 2-year-olds, and 3 and 4-year-olds

Funding within the schools budget allows for a free entitlement of 15 hours per week for working parents of children from 9 months to 2 years old (from 1 September 2024), 15 hours per week for working parents of 2-year-old children (from 1 April 2024), 15 hours per week per child for disadvantaged 2-year-olds, 15 hours per week for all 3 and 4-year-olds, and an additional 15 hours per week for working parents of 3 and 4-year-olds.

This line should include all funding made available to PVI providers, maintained nursery schools and schools with nursery classes for the free entitlements.

If a local authority makes payments to maintained schools for early years provision for hours above the universal/additional 15 hours through its early years formula, you should show this here.

Please include the funding for SEN inclusion fund top-up grant, EYPP and DAF here. This information is also required in the early years proforma.

1.0.2 High needs place funding within individual schools budget (before academy recoupment), excluding funding for 16 to 19 academies and free schools and further education (FE) colleges and independent learning providers

Include high needs place funding for:

• special schools
• PRUs
• hospital schools
• special units and resourced provision attached to nursery, primary and secondary schools and the place funding for the equivalent academies

This line should include high needs place funding that the local authority would have made available to special and AP academies funded through recoupment if it was still funding them, and the place funding in special free schools that the local authority is required to fund from its DSG. The corresponding expected recoupment should be entered in line 1.10.2.

High needs place funding for maintained special schools and special academies (and free schools) with sixth forms should include the place funding for these 16 to 19-year-old pupils; likewise, for any special units attached to secondary schools that include 16 to 19-year-old pupils.

For special units and resourced provision in primary and secondary schools, special schools and PRUs, the delegated amount is only the place funding under Regulation 14 of the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024. Top-up funding should appear in section 1.2 of the form.

Funding for nursery places funded from the high needs block should also be included.

Do not include place funding for:

• FE colleges
• sixth form colleges
• independent colleges
• special post-16 institutions and other post-16 providers that do not provide for pupils of compulsory school age
• maintained schools and academies that provide only for 16 to 19-year-olds

1.0.1 and 1.0.2

Total ISB must be consistent with figures recorded in the APT and accompanying tables submitted to us in January 2024, and will include the following when populated in the workbook:

• early years column – the total early years single funding formula including PVIs, maintained nursery schools and nursery classes, SEN inclusion fund top-up grant, EYPP and DAF
• primary column – total budget share including all primary minimum funding guarantee with the early years element removed
• secondary column – total budget share, including sixth forms and including all secondary minimum funding guarantee with the early years element removed
• special schools column – total budget share, including sixth forms (the high needs place funding)
• AP/PRUs column – total budget share (for example, the high needs place funding)

De-delegated Items

These apply only to maintained primary and secondary schools.

1.1.1 Contingencies

Include expenditure as defined in Part 1 of the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024. This ‘expenditure on the schools specific contingency’ is central expenditure deducted for the purpose of ensuring that monies are available to enable increases in a school’s budget share after it has been allocated, and where a governing body has incurred expenditure where it would be unreasonable to expect it to meet this from the school’s budget share.

This may include expenditure in relation to:

• schools in financial difficulty
• the writing-off of deficits of schools which are discontinued, excluding any associated costs and overheads
• new, amalgamating or closing schools
• other expenditure where such circumstances were unforeseen when initially determining the school’s budget share

1.1.2 Behaviour support services

Include here the cost of providing or purchasing specialist behaviour support services, both advisory and teaching.

1.1.3 Support to underperforming pupils from ethnic minority groups and bilingual learners

Include expenditure for the purposes of improving the performance of underperforming pupils from ethnic minority groups and meeting the specific needs of bilingual pupils.

1.1.4 Free school meals – eligibility

Include here expenditure on determining the eligibility of a pupil for free school meals.

1.1.5 Insurance

Include expenditure on insurance for liability arising in connection with schools and school premises, and on membership of the risk protection arrangement where schools have joined collectively through de-delegation.

1.1.6 Museum and library services

Include here expenditure on services to schools provided by museums and libraries.

1.1.7 Licences/subscriptions

Include here expenditure on licence fees or subscriptions paid on behalf of maintained schools. A number of licences are now dealt with through a central contract with DfE, and funding to pay for this (for maintained schools and recoupment academies) should appear in line 1.4.14 – ‘Other items’.

1.1.8 Staff costs – supply cover (excluding cover for facility time)

Include expenditure in making payments to, or in providing a temporary replacement for:

• a woman on maternity leave
• a man on paternity leave
• a person on shared parental leave
• a person on adoption leave
• a person on parental bereavement leave

Also, expenditure of the same kind for persons:

• performing public duties under section 50 of the Employment Rights Act 1996
• undertaking jury service
• who are elected or appointed representatives of employee safety where there is no recognised trade union safety representative, under the Health and Safety (Consultation with Employees) Regulations 1996
• who are elected or appointed employee representatives where there is no recognised trade union, for the purposes of Chapter II of Part IV of the Trade Union and Labour Relations (Consolidation) Act 1992 as defined in section 196 of that Act or regulation 13 (3) of the Transfer of Undertakings (Protection of Employment) Regulations 2006
• taking time off for ante-natal care under section 55 of the Employment Rights Act 1996
• undertaking duties as members of the reserve forces as defined in section 1(2) of the Reserve Forces Act 1996
• suspended from working at a school

Plus, 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 3 months or more other than to a local education authority or the governing body of a school
• persons who have been continuously absent from work because of illness for 21 days or more

1.1.9 Staff costs – supply cover for facility time

Include expenditure in making payments to, or in providing a temporary replacement for, persons:

• carrying out trade union duties or undergoing training under section 168 and 168A of the Trade Union and Labour Relations (Consolidation) Act 1992
• taking part in trade union activities under section 170 of the Trade Union and Labour Relations (Consolidation) Act 1992 (although such activities should attract unpaid time off)
• who are officials of a recognised trade union acting as safety representatives under the Safety Representatives and Safety Committee Regulations 1977
• who are officials of a recognised trade union acting as employee representatives for the purposes of Chapter II of Part IV of the Trade Union and Labour Relations (Consolidation) Act 1992 as defined in section 196 of that Act or regulation 13 (3) of the Transfer of Undertakings(Protection of Employment) Regulations 2006
• who are appointed learning representatives of recognised trade unions under section 168A of the Trade Union and Labour Relations (Consolidation) Act 1992, 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

High needs budget

1.2.1 Top-up funding – maintained schools

Include planned expenditure on top-up funding for maintained schools, including PRUs.

Top-up funding is paid to schools for pupils with high needs in:

• mainstream classes
• special units and resourced provision attached to mainstream schools
• special schools
• PRUs
• sixth forms

Top-up funding is usually administered directly by local authorities from a central high needs budget. Where such funding has been devolved to groups of schools or individual schools for them to decide what to pay other schools (for example, when a school pays top-up funding for a pupil it places in a PRU), this funding should also be included. It is important, however, that this excludes any funding already in schools’ budget shares and included in line 1.0.1. This line should also include any high needs funding paid to maintained special schools and PRUs for teachers’ pay and pensions (employer contributions) costs, under the additional condition of grant attached to local authorities’ DSG (section 3.6(7)).

Monies paid to local authority maintained special schools (including hospital schools) and PRUs (including medical PRUs) under the additional condition of grant that requires payment of a sum equivalent to 3.4% of total grant funding should also be included in this line.

1.2.2 Top-up funding – academies, free schools and colleges

Include planned expenditure on top-up funding for academies and free schools. Top-up funding is paid to academies for pupils with high needs in:

• mainstream classes
• special units and resourced provision attached to mainstream academies and free schools
• special academies and free schools
• AP academies and free schools
• academy and free school sixth forms

Also include, in the ‘post-school’ column, top-up funding for students with high needs in:

• FE colleges
• sixth form colleges
• 16 to 19 schools and academies without pupils of compulsory school age
• local authority post-16 provision

Top-up funding is usually administered directly by local authorities from a central high needs budget. Where such funding has been devolved to schools and academies for them to decide what to pay other schools (for example, when an academy pays top-up funding for a pupil it places in an AP free school), this funding should also be included. It is important, however, that this excludes any funding already in academies’ budget shares and included in line 1.0.1. This line should also include any high needs funding paid to special academies and free schools, and to AP academies and free schools, for teachers’ pay and pensions (employer contributions) costs, under the additional condition of grant attached to local authorities’ DSG (section 3.6(7)).

Monies paid to special academies and free schools (including hospital schools), and to AP academies and free schools (including medical AP facilities), under the additional condition of grant that requires payment of a sum equivalent to 3.4% of total grant funding should also be included in this line.

1.2.3 Top-up and other funding – non-maintained and independent providers

Include planned expenditure on top-up funding for non-maintained special schools in the special schools column.

Planned expenditure on pupils with EHC plans at independent special schools, including pupils in their sixth forms, should be included in the special school column.

Planned expenditure on mainstream independent schools should be recorded in the primary or secondary columns, as for mainstream maintained schools and academies.

In the post-school column include planned expenditure on top-up funding for:

• students at independent learning providers of post-16 education and training (previously called commercial and charitable providers)
• independent specialist colleges
• other independent special post-16 institutions

While independent and non-maintained provision frequently offers integrated education, health and social care provision, only educational costs should be charged to the DSG. The social care element of accommodating children with SEN in schools should be recorded elsewhere (for example, 3.1.1). In the event that health costs are recorded here (for example, paid up-front as part of an integrated package of support), they should be recorded with associated health income.

1.2.4 Additional high needs targeted funding for mainstream schools and academies

Include expenditure from the local authority’s high needs budget which is given to mainstream schools and academies (and exceptionally colleges) to ensure they have enough funding to meet additional support costs up to £6,000 for pupils with SEN, where they cannot reasonably do this out of their budget share or other mainstream funding.

Local authorities were asked to give more detailed information in their APT return (including the amounts and criteria) about such targeted funding for mainstream schools. More information is available in the detailed APT guidance.

1.2.5 SEN support services

Include the costs of non-delegated centrally retained specialist SEN support services for children with and without EHC plans, whether supported directly by the local authority or commissioned by them. This will include services for:

• visual, hearing and physical impairment
• specific learning difficulties
• speech, language and communication
• profound and severe learning difficulties
• autism

You should include:

• the costs of these services for 0 to 5-year-olds
• any costs of providing these services to home educated children
• the costs of early years special educational needs coordinators (SENCOs) who are centrally managed across a number of early years providers

Do not include the costs of behaviour support services which are not in support of SEN (see line 1.1.2).

Do not include recharges or the cost of assessing the need for and monitoring SEN provision. This should be included in ‘Other Education and Community Budget’, line 2.1.2, under ‘Monitoring of SEN provision’.

1.2.6 Hospital education services

Hospital education is defined in the regulations as education provided at a community special school or foundation special school established in a hospital (usually called a hospital school), or under any arrangements made by the local authority under section 19 of the Education Act 1996 (normally provision in PRUs or services centrally managed by the local authority, where the child is being provided with such education by reason of a decision made by a medical practitioner).

In line 1.2.6 include expenditure on hospital education services only. It should include services made available to children and young people resident in the local authority’s area, and services made available to those who are in the area because that is where they are receiving their health care. It should also include expenditure on the local authority’s pupils who are receiving their education from an independent hospital education provider.

It is important to exclude from this budget line any funding for hospital education places in special schools (including those special schools that are hospital schools) or PRUs (sometimes these are known as medical PRUs), which should instead be included in line 1.0.2 with a breakdown in the ‘High Needs Places Table’.

1.2.7 Other alternative provision services

Include planned expenditure on AP services provided directly or commissioned by the local authority. This may include funding for home educating parents.

Also include funding for AP providers other than PRUs, AP academies and AP free schools. Include funding for commissioned services delivered by PRUs, AP academies and AP free schools.

Exclude any funding for high needs places at PRUs and AP academies (which should be included in line 1.0.2 instead and, in the case of PRUs, specified in table 2) and any top-up funding in respect of pupils at these providers (see lines 1.2.1 and 1.2.2).

Any funding for places in AP free schools that is recouped from local authorities from the third year that the free school is open should be included in this line, with the same amount included in the academies recoupment line 1.10.2.

1.2.8 Support for inclusion

Include here expenditure for:

• collaboration between mainstream and special schools and primary and secondary schools to enable children with SEN to take part in mainstream activities
• devolved expenditure for the integration of children from specialist to mainstream settings and the provision of discrete services or projects to promote such integration, such as commissioned outreach services

Do not include recharges or the cost of assessing the need for and monitoring SEN provision. This should be included in the ‘Other Education and Community Budget’, line 2.1.2, under ‘Monitoring of SEN provision’.

1.2.9 Special schools and PRUs in financial difficulty

Include expenditure on assisting local authority maintained special schools and PRUs in financial difficulty.

1.2.10 Private finance initiative (PFI)/Building Schools for Future (BSF) costs at special schools, AP/PRUs and post-16 institutions only

Include expenditure on funding private finance initiative (PFI) or Building Schools for the Future (BSF) costs at special schools, special academies, PRUs and AP academies, where the local authority has decided to fund this outside the place funding and top-up funding. This line should also be used for funding PFI or BSF costs at maintained 16 to 19 institutions and 16 to 19 academies, which can no longer be funded through the schools formula as the post-16 factor has been discontinued.

1.2.11 Direct payments (SEN and disability)

Include all expenditure planned by the local authority under The Special Educational Needs (Personal Budgets) Regulations 2014 to provide a direct payment to the parents of children, or to young people, with an EHC plan.

Include here SEN transport expenditure where there have been direct payments made to families to cover these costs.

1.2.12 Carbon reduction commitment allowances (PRUs)

This code is no longer in use.

1.2.13 Therapies and other health related services

Include costs associated with the provision or purchase of speech, physiotherapy and occupational therapies. Include any expenditure on the provision of special medical support for individual pupils which has been deemed to be special educational provision (for example, recorded under section F of an EHC plan) and therefore the responsibility of the local authority.

Early years budget

1.3.1 Central expenditure on early years entitlement

This line should reflect the total funding for early years contingency and centrally retained spending for each of the following entitlement funding streams for the early years proforma: 3 and 4-year-olds, 2-year-old disadvantaged, 2-year-old working parent and 9-month-old to 2-year-old. The gross figure in line 1.3.1 in the local authority table should match the sum of the early years proforma lines 12a, 12b, 12c, 12d, 13a, 13b, 13c and 13d.

Central provision within schools budget

The finance regulations restrict a number of central schools block lines to historic commitments entered into prior to 1 April 2013. The budget for these cannot increase over the budget held in 2012 to 2013. The relevant expenditure lines are 1.4.1, 1.4.4, 1.4.6, 1.4.7 and 1.4.11.

These regulations state:

‘Expenditure referred to in paragraphs 1 and 2 of Part 1 (Historic Commitments) of Schedule 2 may only be deducted by the local authority where the expenditure is to be incurred as a result of decisions taken before 1 April 2013 that commit the authority to incur expenditure in the funding period.’

The ‘funding period’ here refers to the forthcoming financial year.

Schedule 2 also states that, other than in the case of paragraph 1 (capital expenditure funded from revenue), the schools forum or the Secretary of State must have approved the original decision. Schedule 2 does not allow local authorities to maintain a budget of indefinite size for an indefinite period against these funding lines.

More information can be found in the 2017 to 2018 schools funding historic commitments guidance.

1.4.1 Contribution to combined budgets

Expenditure under this heading should only reflect the contribution to a combined service approved by the schools forum. The service must be partly funded from outside the schools budget and there should be an educational benefit arising from the service. These require annual authorisation as stated in paragraph 2 (c) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024.

Also include expenditure on miscellaneous purposes, provided the expenditure does not amount to more than 0.1% of the local authority’s schools budget and was approved by the schools forum or Secretary of State before 1 April 2013 (paragraph 2(e) of Schedule 2).

1.4.2 School admissions

Include expenditure incurred in connection with the local authority’s functions under section 85A of the 1998 Act (as inserted by section 46 of the 2002 Act). This includes the administration of the system of admissions of pupils to schools including expenditure incurred:

• carrying out consultations under section 88C(2) of the 1998 Act, establishing, maintaining and consulting with representative bodies for the purposes of admissions
• in relation to appeals

1.4.3 Servicing of schools forums

Include expenditure incurred in connection with the local authority’s functions of running the forum as defined under section 47A of the 1998 Act (as amended by Section 43 of Education Act 2002) (establishment, maintenance of, and consultation with schools forums).

1.4.4 Termination of employment costs

Only include expenditure for premature retirement costs, or for the purposes of securing the resignation of any person employed in a maintained school where there are consequential savings to the schools budget and where the cost relating to that individual had been approved by the schools forum prior to 1 April 2013 (paragraph 2 (b) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024). It does not count as a commitment to have identified a budget for different individuals’ costs each year or to support new redundancy costs in schools.

1.4.5 Falling rolls fund

Expenditure to be incurred due to a decline in pupil numbers in:

• schools which were awarded either the highest or the second highest grade in their last inspection under section 5 of the 2005 act, including those inspected during the funding period
• academy schools that have not previously been inspected under section 5 of the 2005 act and have a predecessor school (or schools) awarded the highest or second highest grade in their last inspection under section 5 of the 2005 act, including those inspected during the funding period

where funding is likely to be necessary due to subsequent growth in pupil numbers at such schools before the end of the next 3 school (academic) years after the funding period.

1.4.6 Capital expenditure from revenue (CERA)

Include expenditure commonly known as CERA (capital expenditure which an authority expects to charge to a revenue account of the authority within the meaning of section 22 of the Local Government Act 2003) and where the expenditure relating to the specific project had been approved prior to 1 April 2013.

It does not count as a commitment to have identified a budget for different capital works each year or a general contribution to the capital programme. PFI costs should be delegated through the funding formula.

1.4.7 Prudential borrowing costs

Enter expenditure incurred in repayment of loans under paragraph 2(a) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024.

PFI costs should be delegated through the funding formula.

1.4.8 Fees to independent schools without SEN

Include expenditure pursuant to section 18 of the 1996 Act 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 without SEN at a school which is not maintained by any local authority and is not an academy.

This does not include fees to independent schools providing AP or hospital education, or to independent AP institutions, which should be shown in lines 1.2.6 or 1.2.7 as appropriate.

Include planned expenditure on post-16 students without SEN in independent schools.

1.4.9 Equal pay – back pay

Include centrally retained provision for meeting the cost of equal pay settlements in schools.

1.4.10 Pupil growth

Include:

• expenditure incurred due to a significant growth in pupil numbers as a result of the local authority’s duty under section 13(1) of the 1996 act to ensure that sufficient primary education and secondary education are available to meet the needs of the population in their area
• expenditure to be incurred prior to the opening of new schools to fund the appointment of staff and to enable the purchase of any goods and services necessary in order to admit pupils

This includes pre and post-opening funding for new schools (including academies) built to meet basic need.

1.4.11 SEN transport

Only include expenditure that has been offset by savings to the schools budget and has been approved by the schools forum (paragraph 2(d) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024). SEN transport costs within the DSG can only be included on this line or line 1.2.11 ‘Direct payments (SEN and disability)’, and must not be recharged to any other lines within the DSG.

1.4.12 Exceptions agreed by the Secretary of State

Include centrally retained schools budget expenditure approved by the Secretary of State and falling outside the classes or descriptions of planned expenditure in Schedule 2 of the 2024 regulations. Schools forum approval is required on an annual basis for historic or new commitments if it is to continue. This excludes expenditure on licences, which should be under 1.4.14.

1.4.13 Infant class sizes

Include expenditure incurred in order to make provision for extra classes in compliance with the School Admissions (Infant Class Sizes) (England) Regulations 2012.

1.4.14 Other items

Include expenditure on:

a) Copyright licences which are negotiated centrally by the Secretary of State for all publicly funded schools – for 2024 to 2025 these are:

• the Copyright Licensing Agency licence
• the School Printed Music licence
• the Newspaper Licensing Agency Schools licence
• the Educational Recording Agency licence
• the Public Video Screening licence, including a new digital element
• the Motion Picture Licensing Company licence
• the Performing Rights Society licence
• the Phonographic Performance licence
• the Christian Copyright Licensing International licence

b) Remission of boarding fees payable in connection with the attendance of pupils at maintained schools and academies.

c) Any funding for additional costs covered from DSG arising from the increase in the employer’s contribution rate on 1 September 2019 for members of the Teachers’ Pension Scheme that are employed by the local authority and not employed to work in maintained schools, that does not fit within any other line of section 1. The regulations (paragraph 24 of Schedule 2) allow authorities to charge to the schools budget 30.5% of the total employer contribution to the pension costs for such teachers. Many of these teachers’ salaries will be funded from the schools budget (e.g., in line 1.2.5) and in that case the full cost of the teacher should be entered in that line; but where the teacher’s salary would appear in section 2, or would not appear on this form at all, the chargeable pension cost contribution should appear in this line.

Central provision within schools budget (former ESG retained duties)

From 2017 to 2018 that part of the ESG  which related to retained duties (those that apply to both maintained schools and academies) was added to the DSG. This provision now falls within the schools budget, provided it is funded out of DSG (see section 2.0 for provision not funded out of DSG). Additional lines have been provided in section 1 for the purpose of recording it.

1.5.1 Education welfare service

Include:

• functions in relation to the exclusion of pupils from schools, excluding any provision of education to excluded pupils (paragraph 20 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• school attendance (paragraph 16 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• responsibilities regarding the employment of children (paragraph 18 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)

1.5.2 Asset management

Include:

• 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 (paragraph 14 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• general landlord duties for buildings owned by the local authority, including those leased to academies

1.5.3 Statutory/regulatory duties

Include expenditure on:

• the Director of Children’s Services and personal staff for the director (paragraph 15(a) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• planning for the education service as a whole (paragraph 15(b) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• revenue budget preparation, preparation of information on income and expenditure relating to education, and external audit relating to education (paragraph 22 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• authorisation and monitoring of expenditure not met from schools’ budget shares (paragraph 15(c) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• formulation and review of local authority schools funding formula (paragraph 15(d) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• internal audit and other tasks related to the local authority chief finance officer’s responsibilities under Section 151 of the Local Government Act 1972, except duties specifically related to maintained schools (paragraph 15(e) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• consultation costs not relating to maintained schools (paragraph 19 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• plans involving collaboration with other local authority services or public/voluntary bodies (paragraph 15(f) of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• Standing Advisory Committees for Religious Education (paragraph 17 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• provision of information to, or at the request of, the Crown other than relating specifically to maintained schools (paragraph 21 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)

Central provision funded through maintained schools budget

The general duties part of ESG (that part relating to maintained schools only) ceased from September 2017. Local authorities are able to deduct funding from maintained schools’ budgets (with the consent of maintained school members of the schools forum) in much the same way as for existing de-delegated items in order to fund these services. Provision funded in this way should be recorded in this section. For provision not funded from DSG see section 2.0.

1.6.1 Central support services

Include expenditure on:

• clothing grants (paragraph 54 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• provision of tuition in music, or on other music related activities (paragraph 55 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• visual, creative and performing arts (paragraph 56 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• outdoor education centres (but not centres mainly for the provision of organised games, swimming or athletics) (paragraph 57 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)

1.6.2 Education welfare services

Include expenditure on inspection of attendance registers (paragraph 80 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024).

1.6.3 Asset management

Include expenditure on general landlord duties for all maintained schools (paragraph 78 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024), (section 542(2) Education Act 1996; School Premises Regulations 2012) to ensure that school buildings have:

• appropriate facilities for pupils and staff (including medical and accommodation)
• the ability to sustain appropriate loads
• reasonable weather resistance
• safe escape routes
• appropriate acoustic levels
• lighting, heating and ventilation which meets the required standards
• adequate water supplies and drainage
• playing fields of the appropriate standards

You should also include:

• general health and safety duty as an employer for employees and others who may be affected (Health and Safety at Work etc. Act 1974)
• management of the risk from asbestos in community school buildings (Control of Asbestos Regulations 2012)

1.6.4 Statutory/regulatory duties

Include expenditure on:

• functions of the local authority related to best value and provision of advice to governing bodies in procuring goods and services (paragraph 58 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• budgeting and accounting functions relating to maintained schools and other functions relating to the financing of maintained schools (paragraph 75 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• authorisation and monitoring of expenditure in respect of schools which do not have delegated budgets, and related financial administration (paragraph 59 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• monitoring of compliance with requirements in relation to the scheme for financing schools and the provision of community facilities by governing bodies (paragraph 60 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• internal audit and other tasks related to the local authority chief finance officer’s responsibilities under Section 151 of the Local Government Act 1972 for maintained schools (paragraph 61 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• functions relating to maintained schools under Section 44 of the 2002 act (Consistent Financial Reporting) (paragraph 62 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• investigations of employees or potential employees, with or without remuneration to work at or for schools under the direct management of the headteacher or governing body (paragraph 63 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• functions related to local government pensions and administration of teachers’ pensions in relation to staff working at maintained schools under the direct management of the headteacher or governing body (paragraph 64 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• retrospective membership of pension schemes where it would not be appropriate to expect a school to meet the cost (paragraph 77 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• HR duties, including advice to schools on the management of staff, pay alterations, conditions of service and composition/organisation of staff; determination of conditions of service for non-teaching staff; appointment or dismissal of employee functions (paragraphs 65, 66 and 67 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• consultation costs relating to maintained schools (paragraph 68 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• compliance with duties under the Health and Safety at Work Act (paragraph 69 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• provision of information to or at the request of the Crown relating to maintained schools (paragraph 70 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• supervision of school companies (paragraph 71 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• functions under the Equality Act 2010 (paragraph 72 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• establishing and maintaining computer systems linking authorities and maintained schools, including data storage (paragraph 73 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)
• appointment of governors and payment of governor expenses (paragraph 74 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024)

1.6.5 Premature retirement costs/redundancy costs (new provisions)

Include expenditure on dismissal or premature retirement when costs cannot be charged to maintained schools (paragraph 79 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024).

1.6.6 Monitoring national curriculum assessment

Include expenditure on monitoring national curriculum assessments (paragraph 76 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024).

1.6.7 School improvement

School improvement covers any school improvement activities provided for maintained schools by the local authority. With effect from 2022 to 2023, this line can cover activities that were within the scope of the separate local authority grant for school intervention and improvement (see line 2.0.3). The grant covered activities in relation to intervening in underperforming maintained schools, monitoring maintained schools in order to identify those at risk of becoming eligible for intervention and commissioning support for them. This line has been moved from section 1.1 to section 1.6 since funding can now be deducted from maintained special schools and PRUs as well as maintained primary and secondary schools (paragraph 53 of Schedule 2 to the School and Early Years Finance and Childcare (Provision of Information About Young Children) (Amendment) (England) Regulations 2024).

Other items

1.7.1 Other specific grants

Include other specific grants, whether devolved or not devolved to schools.

Do not include:

• any separate grants such as DSG
• any element of the pupil premium grant (which should not be entered anywhere on the form)
• sixth form funding
• universal infant free school meals funding
• PE and sports funding
• any teachers’ pay or pension grant

COVID-19 grants for schools should also be excluded.

Note that EYPP is part of the early years block budget and not part of the pupil premium grant and is to be included on the form under line 1.0.1.

Where this line is used both the grant and the expenditure funded by the grant should be entered, so that the line nets to zero in all circumstances (local authorities should be planning to spend all of the grants, since grants cannot be used for any other purpose).

1.8.1 Total schools budget (before academy recoupment)

This line adds up the planned expenditure recorded on the preceding lines.

1.8.1a DSG block planned expenditure

Please enter the allocated DSG funding and planned spending for the 4 blocks shown on the local authority table.

Allocated DSG funding should be taken from the tables of 2024 to 2025 DSG allocations, after deductions for post-school high needs place funding, but before any recoupment for academies. The allocated block funding figures in the tables should not be altered for any transfers that the local authority may have made between blocks, or for any accruals in the early years sector.

Planned spending should be derived from the net spending entered in sections 1.0 to 1.6 of the table, appropriately assigned against the 4 DSG blocks. Where a transfer has been made between blocks, the spending will appear against the block where it will actually be spent (for example, high needs rather than schools). You should, however, ensure that all expenditure supported by the funding in line 1.9.4 (‘Grant for maintained school sixth forms’) is excluded from this table.

In general terms, we would expect that expenditure entered in the early years column would relate to the early years block. For the other columns:

• line 1.0.1, section 1.1, lines 1.4.5, 1.4.10 and 1.4.13, and section 1.6 would relate to the schools block
• line 1.0.2, section 1.2 and line 1.4.11 would relate to the high needs block
• the rest of section 1.4 along with section 1.5 would relate to the central school services block

However, local authorities may have other ways of attributing expenditure, particularly for early years pupils with high needs, and so should assign expenditure in line with local practice.

Expenditure should include everything that has actually been budgeted for, regardless of whether the source of funding is the 2024 to 2025 DSG, funds brought forward from previous years, or a deficit to be carried forward to the following year.

Reconciliation of schools budget (before academy recoupment)

1.9.1 Estimated DSG for 2024 to 2025 (before academy recoupment), excluding high needs place funding for 16 to 19 academies and free schools and FE colleges and independent learning providers

The local authority’s estimated DSG for the purposes of setting the schools budget. This is the DSG as notified in March 2024, including post-16 high needs place funding in maintained schools and academies, adjusted by the subsequent deductions from the high needs block of place funding for colleges and other post-school institutions which we will pay directly, and by the local authority’s estimate of future changes in the early years block. Funding for school business rates (NNDR) continues to be part of DSG and should be included here.

Any funding the authority expects to receive under the Safety Valve programme should also be included.

NOTE: The way in which local authorities account for DSG deficits has been altered by the Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2020, which require DSG deficits to be held in a separate reserve. But this does not alter the way in which local authorities should fill in the section 251 forms. DfE still requires local authorities to record the net position on DSG, adding up deficits and surpluses across all years up to and including 2023 to 2024 for line 1.9.2, and further adding any expected deficit or surplus in 2024 to 2025 for line 1.9.3.

1.9.2 DSG brought forward from 2023 to 2024

The total amount of all DSG reserves brought forward from previous years, as estimated at 31 March 2024. Reserves should be entered as a positive number and deficits as a negative number. These will calculate from carry forward from financial years before 2023 to 2024, plus:

• the difference between the final DSG in 2023 to 2024 and earlier estimates of DSG on which the schools budget was based
• an expected under or overspend in 2023 to 2024 against the central elements of the schools budget

1.9.3 DSG carry forward to 2025 to 2026

Any amount which the authority decided after consultation with the schools forum to carry forward to 2025 to 2026 from the 2024 to 2025 DSG, or from DSG carried over from earlier years, rather than distribute in 2024 to 2025. A negative number represents a positive sum being carried forward, and a positive number indicates a deficit being carried forward.

1.9.4 Grant for maintained school sixth forms

Grant supporting post-16 education in maintained schools, including schools becoming academies on or after 1 April 2024.

If 2024 to 2025 data is not received in time, local authorities will need to forecast the income for 2024 to 2025 based upon the 2023 to 2024 figures and information about 2024 to 2025 arrangements we have issued.

1.9.5 Local authority additional contribution

This includes any additional funding provided by the local authority to support the schools budget. If the local authority had an overall DSG deficit as at the end of the financial year 2023 to 2024, a contribution from non-DSG sources requires the consent of the Secretary of State.

1.9.6 Total funding supporting the schools budget (lines 1.9.1 to 1.9.5)

This line records the total sources of income to the schools budget, taking into account balances brought forward from 2023 to 2024 and those it intends to carry forward to 2025 to 2026, as well as any additional funds provided by the local authority. This line is expected to equate to the net position on line 1.8.1.

1.10.1 Academy recoupment from the DSG of schools block funding

Enter here any amount which the local authority expects to be recouped from its gross DSG allocation for 2024 to 2025 for academies. Include deductions for academy business rates (national non-domestic rates).

Exclude any high needs place funding for special and AP academies, and for special units and resourced provision in primary and secondary academies. These amounts should be included in line 1.10.2.

This line needs to include recoupment estimates for all academies which are funded by recoupment, and which have become academies before 1 April 2024.

No recoupment estimates should be included for schools which are expected to become academies on or after 1 April 2024.

Recoupment from the DSG should be shown as a negative figure.

1.10.2 Academy recoupment from the DSG of high needs place funding shown under line 1.0.2

Enter here any high needs place funding amount which the local authority expects to be recouped from its gross DSG allocation for 2024 to 2025 for special and AP academies (including those in receipt of hospital education place funding), and for special units and resourced provision in primary and secondary academies.

Do not include place funding for 16 to 19 academies and free schools, and FE colleges and independent learning providers.

Local authorities should use the recoupment figures from the March 2024 DSG publication, as these take account of the academic year changes following the annual place change notification process.

This line needs to include recoupment estimates for all academies which are funded by recoupment, and which have become academies before 1 April 2024. Also add in any recoupment of place funding for AP free schools that is included in line 1.2.7 rather than line 1.0.2.

No recoupment estimates should be included for schools which are expected to become academies on or after 1 April 2024.

Recoupment from the DSG should be shown as a negative figure.

Other education and community budget

Subject to what is said below in relation to specific grants, administrative costs and overheads attributable to a particular category of expenditure should be included under the appropriate item head. Similar treatment will apply to expenditure for support for IT systems.

The lines in section 2.0 relate to functions formerly funded from ESG. They should be used to record provision for those functions that are not funded from DSG in 2024 to 2025, and instead are funded from other council sources of funding. They are, therefore, not part of the schools budget.

2.0.1 Central support services

Includes expenditure on:

• pupil support: provision and administration of clothing grants and board and lodging grants, where such expenditure is not supported by grant
• music services: expenditure on the provision of music tuition or other activities which provide opportunities for pupils to enhance their experience of music
• visual and performing arts (other than music): expenditure which enables pupils to enhance their experience of the visual, creative and performing arts other than music
• outdoor education including environmental and field studies (not sports): expenditure on outdoor education centres, field study and environmental studies and so on, but not including centres wholly or mainly for the provision of organised games, swimming or athletics

2.0.2 Education welfare service

Record education welfare service and other expenditure arising from the local authority school attendance functions. Where education welfare officers are directly involved in issues related to The Children Act 1989, the relevant expenditure should be charged to line 3.3.2.

Also record expenditure in connection with powers and duties performed under Part 2 of the Children and Young Persons Act 1933 (Enforcement of, and power to make bylaws in relation to, restrictions on the employment of children).

2.0.3 School Improvement

Include expenditure incurred by a local authority in respect of action to support the improvement of standards in the local authority’s schools, in particular expenditure incurred in connection with functions under the following sections of the Education and Inspections Act 2006:

• section 60 (performance standards and safety warning notice)
• section 60A (teachers’ pay and conditions warning notice)
• section 63 (power of local authority to require governing bodies of schools eligible for intervention to enter into arrangements)
• section 64 (power of local authority to appoint additional governors)
• section 65 (power of local authority to provide for governing bodies to consist of interim executive members) and Schedule 6
• section 66 (power of local authority to suspend right to delegated budget)

2.0.4 Asset management – education

Include expenditure for:

• the management of the local authority’s capital programme
• preparation and review of an asset management plan
• negotiation and management of private finance transactions and contracts (including academies which have converted since the contracts were signed)
• landlord premises functions for relevant academy leases
• health and safety and other landlord premises functions for community schools

This line does not include payments made by the local authority to a PFI provider and any capital expenditure or income. Such expenditure should not appear anywhere on the form.

2.0.5 Statutory/regulatory duties – education

This line should not include any expenditure or income relating to sold services to schools. Include expenditure on education functions related to:

• the Director of Children’s Services and the personal staff of the director
• planning for the education service as a whole
• functions of the local authority under Part 1 of the Local Government Act 1999 (Best Value) and also 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
• revenue budget preparation – the preparation of information on income and expenditure relating to education, for incorporation into the local authority’s annual statement of accounts, and the external audit of grant claims and returns relating to education
• authorisation and monitoring of expenditure:
  • which is not met from schools’ budget shares
  • in respect of schools which do not have delegated budgets
  • on all financial administration relating to these
• the formulation and review of the methods of allocation of resources to schools and other bodies
• the local authority’s monitoring of compliance with the requirements of their financial scheme prepared under section 48 of the 1998 act, and any other requirements in relation to the provision of community facilities by governing bodies under section 27 of the 2002 act
• internal audit and other tasks necessary for the discharge of the local authority chief finance officer’s responsibilities under section 151 of the Local Government Act 1972
• the local authority’s functions under regulations made under section 44 of the Education Act 2002
• investigations which the local authority carry 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
• functions of the local authority in relation to local government superannuation which it is not reasonably practicable for another person to carry out and functions of the authority in relation to the administration of teachers’ pensions
• retrospective membership of pension schemes and retrospective elections made for pensions where it would not be appropriate to expect the governing body of a school to meet the cost from the school’s budget share
• advice, in accordance with the local authority’s statutory functions, to governing bodies in relation to staff paid, or to be paid, to work at a school, and advice in relation to the management of all such staff collectively at any individual school (‘the school workforce’), including in particular, advice with reference to alterations in remuneration, conditions of service and the collective composition and organisation of such school workforce
• determining conditions of service for non-teaching staff and advice to schools on the grading of such staff
• the local authority’s functions regarding the appointment or dismissal of employees
• 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
• compliance with the local authority’s duties under the Health and Safety at Work etc. Act 1974 and the relevant statutory provisions as defined in section 53(1) of that act insofar as compliance cannot reasonably be achieved through tasks delegated to the governing bodies of schools; but including expenditure incurred by the local authority in monitoring the performance of such tasks by governing bodies and where necessary the giving of advice to them
• the preparation and review of plans involving collaboration with other local authority services or with public or voluntary bodies
• provision of information to, or at the request of, the Crown and the provision of other information which the authority is under a duty to make available
• expenditure incurred in connection with the local authority’s functions pursuant to regulations made under section 12 of the Education Act 2002 (supervising authorities of companies formed by governing bodies)
• expenditure incurred in connection with the local authority’s functions under the discrimination provisions of the Equality Act 2010 insofar as compliance cannot reasonably be achieved through tasks delegated to the governing bodies of schools, but including expenditure incurred by the authority in monitoring the performance of such tasks by governing bodies and where necessary the giving of advice to them
• expenditure on establishing and maintaining electronic computer systems, including data storage, insofar as they link, or facilitate the linkage of, the local authority to schools which they maintain, such schools to each other or such schools to other persons or institutions
• expenditure in connection with the local authority’s functions in relation to the standing advisory council on religious education constituted by the local authority under section 390 of the Education Act 1996 or in the reconsideration and preparation of an agreed syllabus of religious education in accordance with schedule 31 to the Education Act 1996
• 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
• expenditure on making pension payments other than in respect of schools
• expenditure in relation to the exclusion of pupils from schools or PRUs, excluding the making of any provision of education to such pupils, but including advice to the parents of an excluded pupil

2.0.6 Premature retirement costs/redundancy costs (new provisions)

Any budget for payments to be made by the local authority in respect of the dismissal, or for the purpose of securing the resignation, of any member of the staff of the school, after 1 April 2024 under section 37, Education Act 2002.

This line is meant to be for new costs in the financial year, in this case 2024 to 2025. For old costs please record in line 2.3.3 (‘Pension costs, includes existing early retirement costs’).

2.0.7 Monitoring national curriculum assessment

Record expenditure on monitoring national curriculum assessment arrangements required by orders made under section 87 of the Education Act 2002.

2.1.1 Educational psychology service

All expenditure on educational psychology services should be entered here.

The cost of educational psychology (EP) services should not be apportioned elsewhere unless an educational psychologist is specially appointed to undertake an alternative function (for example, managing the behaviour support service).

Expenditure on EP bespoke/commissioned work in behaviour support should go into line 1.1.2 ‘Behaviour support services’.

2.1.2 SEN administration, assessment, co-ordination and monitoring

Include here expenditure on identification and assessment of children with SEN and disability; information about the local offer to children with SEN; and the making, maintaining and reviewing of EHC plans under section 36 to 45 of the Children and Families Act 2014. Include the cost of responding to SEN complaints, including tribunal appeals.

Include the cost of strategic management and planning of services to support the inclusion and attainment of children and young people with SEN, preparing relevant strategic plans, SEN administration, planning and co-ordination.

Monitoring of SEN provision: 

Include expenditure on the monitoring and accountability functions of the SEN core teams and support services, including support for school self-evaluation. Also include the proportion of time devoted to SEN and other inclusion activities by inspectors and advisers in the local authority’s school improvement team.

Monitoring of individual EHC plans and annual reviews should be included here.

2.1.3 Independent advice and support services (parent partnership), guidance and information

Include expenditure in connection with the provision or commissioning of information, advice and support services (IASS), parent partnership services and related guidance and information to the parents and carers of children, and to young people, who have SEN and disability.

Also include arrangements made by the local authority with a view to providing mediation services and avoiding or resolving disagreements with the parents of children with special educational needs and disability.

2.1.4 Home to school transport (pre-16): SEN transport expenditure

Include expenditure on:

• travel between home and school for children of compulsory school age where the travel is agreed for reasons of the child’s SEN or disability
• transport to qualifying schools as set out in the travel to school for children of compulsory school age guidance
• the cost of passenger assistants provided to support children with SEN or a disability when travelling between their home and a qualifying school
• any travel provided to enable children below compulsory school age to attend an early years setting named in their EHC plan

2.1.5 Home to school transport (pre-16): mainstream home to school transport expenditure:

Include expenditure on:

• travel between home and school for children of compulsory school age where travel is agreed for reasons other than SEN/disability
• transport to qualifying schools as set out in the travel to school for children of compulsory school age guidance
• the cost of passenger assistants provided to support children when travelling between their home and a qualifying school

2.1.6 Home to post-16 provision: SEN/learner with learning difficulties or disabilities (LLDD) transport expenditure (aged 16 to 18)

Include all gross expenditure, income, and net expenditure incurred by local authorities for transporting learners with SEN aged 16 to 18, and those with an EHC plan aged 19 and over who started their course before their nineteenth birthday, to post-16 education and training provision including:

• school sixth form
• sixth form college
• FE college
• independent specialist providers
• apprenticeships
• other work-based learning provision

Your return should include, as a minimum, the expenditure on:

• transport provided by local authority owned vehicles
• provision of independent travel training
• taxi fares
• local authority contracted vehicles
• subsidies or a financial contribution to travel passes
• fuel allowances for parents

2.1.7 Home to post-16 provision: SEN/LLDD transport expenditure (aged 19 to 25)

Include all gross expenditure, income, and net expenditure incurred by local authorities for transporting learners with SEN aged 19 to 25, who started their course after their nineteenth birthday, to post-16 education and training provision including:

• school sixth form
• sixth form college
• FE college
• independent specialist providers
• apprenticeships
• other work-based learning provision

Your return should include, as a minimum, the expenditure on:

• transport provided by local authority owned vehicles
• provision of independent travel training
• taxi fares
• local authority contracted vehicles
• subsidies or a financial contribution to travel passes
• fuel allowances for parents

2.1.8 Home to post-16 provision transport: mainstream home to post-16 transport expenditure

This line includes home to post-16 provision transport other than for learners with SEN. Include all gross expenditure, income, and net expenditure incurred by local authorities for transporting learners aged 16 to 18 (including those who become 19 during their course) to post-16 education and training provision, including:

• school sixth form
• sixth form college
• FE college
• apprenticeships
• other work-based learning provision

Your return should include, as a minimum, the expenditure on:

• transport provided by local authority owned vehicles
• taxi fares
• local authority contracted vehicles
• subsidies or a financial contribution to travel passes and moped/scooter schemes

Do not include expenditure on home to learning transport for young people with SEN in this line.

2.1.9 Supply of school places

Include expenditure on planning and managing the supply of school places including the local authority’s functions in relation to the establishment, alteration or discontinuance of schools pursuant to Part 2 of, and Schedule 2 to, the Education and Inspections Act 2006.

2.2.1 Other spend not funded from the schools budget

Local authorities have pointed out to us that because some of the lines in section 1.4 of this form require schools forum approval, local authorities may incur expenditure funded from outside the schools budget under these headings that cannot be recorded in section 1. We are therefore providing an additional line in section 2 for recording expenditure on lines in section 1.4 that are not funded out of DSG. This will apply to lines 1.4.2, 1.4.3, 1.4.8 and 1.4.14(b).

2.3.1 Young people’s learning and development

This includes 16 to 18 provision other than schools and FE and covers non-advanced direct provision on 16 to 18 apprenticeships and entry to employment.

This line also includes:

• 14 to 19 reform
• education business links
• learning agreement pilots
• statutory duties for tracking and supporting young people not in education, employment or training (NEET)
• increasing flexibility for 14 to 16-year-olds
• young apprenticeships (key stage 4 for 14 to 15-year-olds)
• 14 to 19 fighting funds (for example, support learning and development initiatives)
• 16 to 18 structural support which has not been included within the lines above

This line relates to the education service.

2.3.2 Adult and community learning

Include adult/community education and ‘lifelong learning’ programmes. Some authorities operate adult, community and youth work as a whole. Items appropriate to this part are:

• adult education
• community education - that is education offered primarily for the purpose of enhancing the capacities of communities rather than the aspirations of individuals
• family learning
• other community services (but not youth work)

Income from ESFA should be shown in the income box.

2.3.3 Pension costs – includes existing early retirement costs

The budget for expected expenditure for commitments for former school and local authority staff should be included under this heading. Also, residual pension liability (such as FE, careers service and so on), ex-FE college staff; ex-career service staff; ex-teacher training institute staff; and the London Pensions Fund Authority levy are included here.

This line covers any on-going commitment incurred in previous years. For new costs please record in line 2.0.6 (‘Premature retirement costs/redundancy costs (new provisions)’), or in line 1.6.5 where the costs are funded out of DSG.

2.3.4 Joint use arrangements

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

2.3.5 Insurance

Include any expenditure on insurance relating to education other than for liability arising in connection with schools or school premises.

Do not include other children’s services.

2.4.1 Other specific grants

Other specific grants, whether devolved or not devolved to schools. Include Delivering Better Value (DBV) expenditure and grant.

Do not include:

• any grants relating to childcare
• any reserved grants such as DSG
• any element of the pupil premium grant, which should not be entered anywhere on the form
• sixth form funding

Note that the early years pupil premium is part of the early years block budget and not part of the pupil premium grant and is to be included on the form under 1.0.1.

COVID-19 related grants should also be excluded.

Where this line is used both the grant and the expenditure funded by the grant should be entered, so that the line nets to zero in all circumstances (local authorities should be planning to spend all of the grant, since the grant cannot be used for any other purpose).

2.5.1 Total other education and community budget

This formula calculates the aggregate of the entries in lines 2.0.1 to 2.4.1.

Children and young people’s services

We have established some general principles to guide local authorities when completing the following sections under children and young people’s services.

The aim of this section is to capture, as far as possible, all budgeted spend on children and young people’s services. Our aim is to make what is collected as accurate as possible so the data can be used with confidence.

Where relevant, complete the income column including:

• income derived from any charges to parents for services
• charges to other centre users (for example rental of rooms)
• any other grant income

Central government grants should not be recorded as income, instead they should be recorded as expenditure against the intended expenditure reporting line (if applicable, including the central government COVID-19 grant funding).

Sure Start children’s centres and other spend on children under 5-years-old

This section of the return is designed to show total local authority spending on Sure Start children’s centres, including:

• how much of this is devolved to individual children’s centres
• how much is used to pay for local authority provided or commissioned services
• how much is used for local authority management costs related to children’s centres

When completing this section for Sure Start children’s centres:

• include salary costs of any staff with qualified teacher status or early years professional staff employed by children’s centres
• do not include other early education funding (including funding through the free entitlement, as that is covered in the early years proforma)
• do not include the cost of services provided in-kind by other statutory providers (for example, health services or Jobcentre Plus)

3.0.1 Funding for individual Sure Start children’s centres

Include details of devolved revenue to children’s centres for the delivery and management of the children’s centre and its services. This includes both children’s centres managed directly by the local authority, where budgets are delegated internally, and those commissioned to another body under a contract or service level agreement, including school governing bodies.

Do not include funding on early education (including early years funding through the free entitlement).

3.0.2 Funding for local authority provided or commissioned area-wide services delivered through Sure Start children’s centres

Include any discrete services to be delivered across the local authority area that are centrally commissioned by the local authority and are part of the children’s centre programme, such as a centrally commissioned outreach service for children under-5 and their families.

Do not include the money/budget for individual children’s centres to deliver services or commission services at a centre level, this should be recorded in 3.0.1.

3.0.3 Funding of local authority management costs relating to Sure Start children’s centres

This refers to the total amount the local authority plans to use to meet the central costs of managing the children’s centre programme.

It includes the costs of local authority organisational management and support, data collection, commissioning, and improvement support.

3.0.4 Other spend on children under 5

This is intended to cover any other money (non-dedicated schools grant) spent to support and develop early years provision (for 0 to 5-year-olds). Activities likely to be included are improvement/sustainability support, implementing your sufficiency action plan and local workforce development.

3.0.5 Total Sure Start children’s centres and other spend on children under 5

This formula calculates the aggregate of the entries in lines 3.0.1 to 3.0.4.

Looked-after children

Include the costs of looking after children for continuous periods of more than 24 hours.

Include any central government grants as expenditure under the line in which they will be spent, e.g., the Unaccompanied Asylum-Seeking Children Home Office grant.

3.1.1 Residential care

Include expenditure on residential care in voluntary children’s and registered children’s homes as defined in Children Act 1989. This includes:

• associated independent visitor costs and relevant contact payments under sections 20 and 34 of the Children Act 1989
• homes where education is provided, but does not attract education department funds
• boarding schools – include the social care share of the costs of community homes with education provision and the social care element of accommodating children with SEN in schools where the education element is met by the education department (note that the funding of the children’s education is recorded in the education lines of the table)

Exclude expenditure costs for:

• short breaks for looked-after disabled children
• mother and baby homes (include in 3.1.5 ‘Other Children Looked After Services’)
• youth detention accommodation (include in 3.1.5 ‘Other Children Looked After Services’)
• respite care for those children not meeting the definition of looked-after children

3.1.2a Fostering services (excluding fees and allowances for local authority foster carers)

Include all in-house provision, fostering services purchased externally and the costs of social worker and other support staff who support foster carers.

Include:

• mainstay placements
• link placements
• permanence placements
• temporary/respite fostering
• associated independent visitor costs and relevant contact payments under sections 20 and 34 of the Children Act 1989

Exclude:

• fees and allowances paid to foster parents
• remand fostering (youth justice)
• foster care placements with a relative or friend (children placed with family and friends)
• social work costs related directly to the fostered children (social work)
• short breaks (respite) for looked-after disabled children

3.1.2b Fostering services (fees and allowances for local authority foster carers)

Include all the fees, allowances, and financial payments made to the approved foster carers of the local authority.

Please note, the budget collection now separately identifies fees and allowances for local authority foster carers. Previously, all fostering service expenditure was captured under 3.1.2 only.

3.1.3 Adoption services

Include staff and overhead costs associated with adoption including the costs of social workers recruiting and assessing new prospective adopters and supporting existing prospective adopters. Also include costs related to adoption support, such as the cost of therapeutic services.

Adoption services are defined as:

• financial support
• services to enable groups of adoptive children, adoptive and birth parents or former guardians of an adoptive child to discuss matters relating to adoption
• assistance, including mediation services, in relation to contact between an agency adoptive child and birth parents, siblings, former guardian or a related person
• therapeutic services for the agency adoptive child or inter-country adoptive child
• assistance for the purpose of ensuring the continuance of the relationship between an adoptive child and his or her adoptive parents, (includes training for adoptive parents to meet any special needs of the child and respite care)
• assistance where disruption of an adoptive placement, or of an adoption arrangement following the making of an adoption order, has occurred or is in danger of occurring, including:
  • making arrangements for the provision of mediation services
  • organising and running meetings to discuss disruptions in such placements or arrangements
• counselling, advice and information

Refer to the Adoption and Children Act 2002, the Adoption Support Services Regulations 2005 and the statutory adoption guidance for further information.

Provision of adoption support is based on assessed needs. Financial payments are made depending on the needs of the child and are means-tested.

Children are placed with approved prospective adopters under the Adoption and Children Act 2002 and the Adoption Agencies Regulations 2005. This is the provision of care and accommodation of children placed for adoption under the Adoption Agencies Regulation 2005. It also covers payments made, in accordance with the Adoption Support Services Regulations 2005, to a family after an adoption order has been made.

Exclude the costs of children placed for adoption (see fostering services) and social work costs directly relating to the adopted children (see social work).

3.1.4 Special guardianship support

Include financial support paid to special guardianship families under the Special Guardianship Regulations 2005 and other staff and overhead costs associated with special guardianship orders.

3.1.5 Other children looked after services

Include support to looked-after children and young people:

• in NHS/other establishments providing nursing/medical care
• residential, respite and emergency nights in residential beds at family centres
• in lodgings or hostels
• in mother and baby homes
• living independently in flats, bed and breakfast establishments, or with friends
• in residential employment
• independent visitor costs and relevant contact payments under sections 20/34 of the Children Act 1989 not included under children’s homes or fostering services
• in youth detention accommodation (as set out in the Legal Aid, Sentencing and Punishment of Offenders Act 2012)
• expenditure on advocacy services for looked-after children

3.1.6 Short breaks (respite) for looked-after disabled children

Include all provision for short breaks (respite) services for disabled children who are deemed looked-after. Include:

• short breaks using a residential setting
• family-based overnight and day care short break services, including those provided through contract and family link carers
• sitting or sessional short break services in the child’s home, or supporting the child to access activities in the community

Exclude any break exceeding 28 days continuous care and costs associated with providing disabled children’s access to residential universal services.

Please note, by definition a child must be provided with accommodation for a continuous period of more than 24 hours before that child can be defined as being a looked-after child under the Children Act 1989 Section 20 and 21. If the provision period is under 24 hours, then that child is not a looked-after child, and the associated costs should be recorded in the ‘Family Support Services’ section.

3.1.7 Children placed with family and friends

Where looked-after children do not live with their birth parents it is not uncommon for them to be placed with family or friends foster carers. Include expenditure on the local authority’s functions in relation to looked-after children placed with family or friends foster carers under the Children Act 1989.

3.1.8 Education of looked after children

Include expenditure on the services provided to promote the education of the children looked after by your local authority (for example, looked-after children education service teams, virtual school head and training for designated teachers).

Exclude any funding delegated to schools for looked-after children.

3.1.9 Leaving care support services

Include the staff and overhead costs associated with the authority’s leaving care support team and services. Including, for example:

• functions carried out by personal advisors, including assessments of need, preparation of pathway plans, and participation in reviews of pathway plans
• costs relating to the training and supervision of personal advisors
• costs associated with providing and maintaining relevant children in suitable accommodation, including ‘staying put’ arrangements
• costs of other forms of accommodation for relevant children which may be necessary in emergency situations
• all forms of financial assistance paid by the authority to care leavers, including financial support to participate in education, such as higher education (HE) bursaries
• costs involved in developing and disseminating the local authority’s policies around support to care leavers
• advising, befriending, and giving assistance to persons qualifying for advice and assistance

Exclude the social worker costs in preparing and reviewing pathway plans prior to young people ceasing to be looked after (such as when they are ‘eligible children’) or any other social worker costs in supporting ‘relevant’ or ‘former relevant’ children (see ‘social work (including local authority functions in relation to child protection)’).

3.1.10 Asylum seeker services children

Include planned expenditure relating to asylum seeking children that are looked after that have not been recorded in other lines (for example, 3.1.1 ‘Residential Care’).

Exclude planned expenditure for children who are not looked-after which is covered by the Home Office grant funding for refugees.

3.1.11 Total children looked after

This formula calculates the total of entries in lines 3.1.1 to 3.1.10.

Other children and family services

3.2.1 Other children and family services

Include other budgeted spend that cannot be placed under another specific heading but contributes to your overall spending on children and young people’s services.

Also include budgeted spend previously captured here:

• grants to voluntary organisations that cannot be specifically placed under another children’s heading
• counselling services
• generic services in support of children that abuse substances not included in the division of service above

Please keep a record of the kind of spending that you have included in this category, as DfE may get in touch with some local authorities to request this information to aid their understanding and analysis of the data.

Safeguarding children and young people’s services

A number of changes have been made to this section following our more detailed consultation. Budgeted spending on child death review processes is now included in the line on multi-agency working. Spending on social work (including functions in relation to child protection) has been separated out from commissioning.

3.3.1 Social work (including local authority functions in relation to child protection)

This line applies to social workers who are directly involved with the care of children and with the commissioning of services for children.

Include most of the direct social work costs (except those detailed below), including the processes for assessing need, determining and defining the service to be provided and reviewing the quality of, and continued relevance of, that care for children. Also include:

• child protection costs
• field social work costs (include hospital social workers)
• occupational therapy services to children
• relevant support staff costs

Exclude social work costs in support of foster carers and adoptive families as these are captured elsewhere in the return.

Also include budgeted spending on local authority functions for child protection. This includes all planned expenditure on carrying out the local authority’s functions for child protection under the Children Act 1989 and under section 175 of the Education Act 2002 and other functions relating to child protection.

3.3.2 Commissioning and children’s services strategy

Include budgeted spending on overall commissioning within children and young people’s services, such as the cost of a central commissioning function.

Include any additional expenditure on services that are bought in from outside the local authority to support the central commissioning function. Where joint commissioning units have been set up, such as between the local authority and the primary care trust, the overall costs of maintaining the joint unit should be given.

Exclude the costs of the actual services commissioned, as well as any social worker costs related to commissioning, as these will be captured elsewhere in the return. Also exclude costs of commissioning services specifically for Sure Start children’s centres as these will be captured in line 3.0.3.

For the children’s services strategy element, include partnership costs for multi-agency working, such as contributions from the local authority to partnership managers and other costs. Do not include pooled budget contributions for specific frontline services. Also include spending on statutory and regulatory duties related to children’s services that are not included in the line on statutory and regulatory duties related to education (line 2.0.5), or in the equivalent lines in section 1 when the expenditure is funded from DSG.

3.3.3 Local safeguarding children boards

Include budgeted spending on the authority’s local safeguarding children board functions under the Children Act 2004 and the Local Safeguarding Children Boards Regulations 2006.

Include child death review processes. This will include expenditure on the local authority’s functions under the Children Act 2004 (as set out in chapter 5 of Working Together 2015). This includes any local authority funded activity in connection with the process of reviewing child deaths in the local authority area (usually under the management of a Child Death Overview Panel); to respond to, enquire into and evaluate each unexpected death of a child, and to review all child deaths in the local authority area (and other areas, if relevant) to determine trends and patterns to avoid future deaths.

3.3.4 Total safeguarding children and young people’s services

This formula calculates the aggregate of entries in lines 3.3.1 to 3.3.3.

Family support services

Some changes have been made to this section to help improve the quality of the data collected. Planned expenditure previously captured in this section should continue to be recorded here, split across services for disabled children (lines 3.4.1 to 3.4.3) and targeted/universal family support and targeted services (lines 3.4.4 and 3.4.5).

This section includes statutory services provided to children in need and their families and voluntary aid to other children.

3.4.1 Direct payments

Exclude expenditure on direct payments for SEN and disability as this is captured above in line 1.2.11.

Include here any other spending on direct payments.

3.4.2 Short breaks (respite) for disabled children

Include all provision for short breaks (respite) services for disabled children in need but not looked after. Include the costs of:

• short breaks using a residential setting, including overnight stays, day care and sessional visits to the setting
• family based overnight and day-care short break services, including those provided through contract and family link carers
• sitting or sessional short break services in the child’s home, or supporting the child to access activities in the community

Exclude:

• short breaks for looked-after disabled children (see 3.1.6)
• any break exceeding 28 days continuous care
• costs associated with providing disabled children’s access to universal day services such as formal childcare, youth clubs, or extended school activities

3.4.3 Other support for disabled children

Include children’s services contribution to equipment and adaptations such as:

• adaptations to homes to help children remain at home
• disability equipment for children, including wheelchairs
• special telephones for the use of children
• other communications and community equipment
• stores, delivery and other associated costs

Exclude contributions by the housing service, adult social care service and local NHS services.

3.4.4 Targeted family support

Targeted family support services are those focused on specific vulnerable families, including, but not limited to, families receiving support through the Supporting Families programme.

Do not record the Supporting Families grant as income but as budgeted expenditure here.

Include budgeted spending in the following areas that were previously captured under separate lines in this data collection:

Contribution to healthcare of individual children

This is expenditure where there is a need to support a child. This includes non-statutory innovative initiatives such as family nurse partnerships. These could be initiatives to be funded privately by the local authority or jointly by local authority or primary care trust.

Home care services

This is home care provided to help carers look after a child at home. For example, home helps, domiciliary care assistants, support or payments to voluntary workers/organisations providing home care services. Also include the costs of administration of home care for children.

Intensive family interventions

Include the expenditure for providing intensive family interventions which underpin the programme led by the Supporting Families team to ensure vulnerable families get access to the early, coordinated whole family support they need to help them overcome their problems before they escalate. Common characteristics include each family having access to a dedicated practitioner who delivers support and co-ordinates the work of other agencies, ensuring that a support/care plan is in place, which outlines actions and timescales. These interventions commonly include pre and post-measurements of how circumstances for the family have changed. Other areas of spend that could be included in this line are:

• payments or gifts in kind to safeguard and promote the welfare of children in need
• community support workers (peripatetic support staff who supervise children at risk, children in need, learning in the community and liaise with other agencies, community psychiatric nurses and so on), outreach workers, family support or aid workers
• expenditure on support for carers rather than clients (including young carers) that is not included in any of the other divisions of service
• family contact supervision
• residence orders paid for

Exclude home care services provided for short breaks for disabled children (which will be included in line 3.4.2 above).

3.4.5 Universal family support

Universal family support is open to all regardless of their family circumstances or perceptions of vulnerability.

This includes support provided in the community for children who do not have an identified particular need (but who may be in a disadvantaged group), such as home-school liaison services funded by the local authority; peer-to-peer support services such as Home-Start and relationship support.

3.4.6 Total family support services

This formula calculates the aggregate of the entries in lines 3.4.1 to 3.4.5.

Services for young people

Services for young people (aged 13 to 19) encompasses all local authority expenditure on provision of educational and recreational leisure time activities, including youth work and delivery of their duties to support young people to participate in education or training.

The scope of the activities covered by this is defined in the statutory guidance for local authorities on services and activities to improve young people’s well-being and targeted support services for young people.

Lines 3.5.1 Universal services for young people and 3.5.2 Targeted services for young people

Cover the following main types of activity:

• youth work
• activities for young people
• services to support young people’s participation in education or training
• substance misuse services
• teenage pregnancy services
• discretionary awards
• student support

They include expenditure on the following:

• employees
• staff training
• premises-related expenditure
• transport-related expenditure
• supplies and services
• third-party payments
• support services
• costs at residential and non-residential youth centres
• costs at activity/outdoor and urban studies centres
• grant funding to the voluntary sector for the activities listed above

Expenditure on youth work includes educational leisure time activities that are for the improvement of young people’s personal and social development, which are delivered using youth work methods and approaches.

Examples of activities for young people include, but are not limited to:

• special interest clubs
• out of school hours coaching in arts and crafts, sporting or other physical activities
• learning opportunities available through facilities offering residential, weekend or holiday-time services
• volunteering activity where young people gain valuable non-formal educational benefits from the experience, for example National Citizen Service
• democratic engagement, for example young mayors and youth councils
• sporting activities and informal physical activities
• cultural activities including music, performing and visual arts

These activities may be made available to young people through Myplace centres.

Expenditure on support to young people to participate in education or training as set out in the ‘Participation of young people in education, employment or training’ statutory guidance for local authorities should include:

• working with schools to identify those at risk of not participating post-16
• delivery of the September Guarantee
• tracking young people’s participation in education and training and provision of information through the Client Caseload Information System (CCIS)
• working with us to secure sufficient, suitable education and training provision for young people
• supporting all young people to participate in education and training for longer after compulsory schooling
• targeted support for young people NEET, working with youth contract providers where appropriate
• local authority careers service functions for young people and activities for young people and activities related to provision of information for young people and their carers

Include expenditure on substance misuse services and teenage pregnancy services, including expenditure to implement and coordinate local strategies as well as targeted prevention and early intervention initiatives.

You should also include expenditure on discretionary awards and in respect of ongoing responsibilities for students in receipt of discretionary awards. Also section 129 of the School Standards and Framework Act 1998 (which substitutes a new section 518 of the Education Act 1996) conferred a revised power on local authorities, should they wish to use it, to make awards to FE (and HE) students (and to 16 to 19-year-olds who are still attending school).

Also include expenditure on student support arrangements, including administration by the local authority in pursuit of its functions under the Education (Student Support) Regulations. These refer to the total staffing and other administration costs for the delivery of student finance functions (student loans and grants) for higher education students from 1998 to 1999 onwards. Do not include amounts paid by the Student Loans Company in the form of grants and loans.

Exclude activity funded through the Public Health Grant. Specific funding data for substance misuse services and teenage pregnancy services is also captured at the end of the data collection, in memorandum lines 8a.1 and 8a.2.

3.5.1 Universal services for young people

Universal and open access services are open to all young people, regardless of their circumstances or perception of vulnerability.

3.5.2 Targeted services for young people

Targeted services are those focused on supporting early intervention for vulnerable young people, including but not limited to those at risk of teenage pregnancy, substance misuse, youth crime and NEET.

Include those services that are targeted towards supporting:

• individual young people on a one-to-one basis (such as counselling)
• groups of young people (for example, young people at risk of gang involvement)
• specific localities (for example, detached youth work in areas that have high instances of antisocial behaviour)

The information below provides an indication as to the way that young people’s services are split up currently.

Young people’s services:

• working with schools to identify those at risk of not participating post-16
• delivery of the September Guarantee
• tracking participation in education and training
• post-16 education and training provision
• raising the participation age
• young people NEET
• Youth Voice

Universal:

• protocols with schools
• tracking offers made to young people
• maintenance of a client database (CCIS)
• uploading information on young people in education and training
• provision of information to DfE
• gap filling exercise
• promoting effective participation
• engaging young people in decision making
• reviewing services in line with the statutory guidance issued in June 2012 by the Secretary of State for Education for local authorities on services and activities to improve young people’s wellbeing

Targeted:

• targeted support for those identified as being at risk
• targeted support for those who do not have an offer of a place when they complete compulsory pre-16 education
• ‘follow-up’ of hard-to-reach young people
• specialist provision for young people with SEN and disability
• identifying young people who ‘drop out’ and providing support to re-engage
• targeted support for young people NEET
• referral of young people NEET to youth contract providers where appropriate
• support for engaging groups of targeted young people in decision-making (for example, looked-after young people, teenage parents)

3.5.3 Total Services for young people

This formula calculates the aggregate of the entries in lines 3.5.1 to 3.5.2.

Youth justice

3.6.1 Youth justice

Include the costs of services related to young offenders including youth offending teams. This includes:

• costs of providing or purchasing secure accommodation (except remand foster care in other youth justice services) for children who pose a risk to themselves, to others or have a security requirement placed on them for youth justice reasons under s53 of the Children and Young Persons Act 1933
• all other remand facilities for a young offender (for example, under section 97 of the Crime and Disorder Act 1998)
• costs of social services staff and support facilities for youth offender teams under the Crime and Disorder Act 1998
• community services costs
• remand fostering costs, that is payments to carers and supervision costs where a court has made an order that an alleged young offender should be held securely in the community rather than being placed in an institution
• bail support schemes
• other youth justice costs

Other items

4.0.1 Capital expenditure from revenue (CERA) (non-schools budget functions and children and young people’s services)

Include expenditure commonly known as CERA, which is capital expenditure that a local authority expects to charge to a revenue account of the authority within the meaning of section 22 of the Local Government Act 2003.

5.0.1 Total schools budget and other education and community budget (excluding CERA)

Sum of lines 1.8.1 and 2.5.1.

5.0.2 Total children’s and young people’s services and youth justice budget lines (excluding CERA)

Sum of lines 3.0.5, 3.1.11, 3.2.1, 3.3.4, 3.4.6, 3.5.3 and 3.6.1.

6. Total schools budget, other education and community budget, children and young people’s services and youth justice budget (excluding CERA)

Sum of lines 5.0.1 and 5.0.2.

7. Capital expenditure (excluding CERA)

Enter here all capital expenditure, being expenditure:

a) which the authority proposes to capitalise in their accounts in accordance with proper practices, being those accounting practices -

i. which the authority is required to follow by virtue of any enactment, or

ii. which, whether by reference to any generally recognised published code or otherwise, are regarded as proper accounting practices to be followed in the keeping of accounts of local authorities, either generally or of description concerned, but in the event of any conflict in any respect between the practices falling within (i) above and those falling within (ii) above, only those falling within (i) above are to be regarded as proper practices

b) which does not fall within note 4.0.1 (capital expenditure from revenue).

Except in the case of permitted spend on prudential borrowing, capital charges should not appear in the table in any form.

Memorandum

A memo line is an extraction of figures which have been included as planned expenditure in the lines above.

Services for young people

Planned expenditure on substance misuse services and teenage pregnancy services will already be included in lines 3.5.1 and 3.5.2 above and should also be included as separate categories in the following lines. These lines are not included in the total spending figures to avoid double counting.

8a.1 Substance misuse services (drugs, alcohol, and volatile substances) (included in 3.5.1 and 3.5.2 above)

These may include:

• targeted drug and alcohol information
• advice and education to support informed choices
• motivational interviewing
• substance misuse brief interventions
• substance misuse specific family support
• substance misuse screening and assessment as part of a wider assessment process

Include all expenditure on targeted services focused on supporting early interventions to manage substance misuse-related risk of harm and reduce the likelihood of young people becoming future drug or alcohol users.

Exclude spending on activities such as specialist substance misuse interventions funded by the public health grant and reported through the public health grant return.

8a.2 Teenage pregnancy services (included in 3.5.1 and 3.5.2 above)

Include all expenditure wholly focused on implementing and coordinating local teenage pregnancy strategies to reduce under-18 conceptions and to improve outcomes for teenage parents and their children reflecting the DfE planning guidance.

Exclude spending on activities funded by the public health grant and reported through the public health grant return.

High needs places table

Special schools/PRUs/hospital schools

This table only collects data on maintained schools. The delegated budget for special schools and PRUs will consist of place funding only. The total place funding amounts should be included in line 1.0.2. The schools’ and PRUs’ top-up funding is shown in line 1.2.1.

Special school and other SEN places will receive £10,000 per place; AP places in PRUs and other settings will also receive £10,000 per place; and hospital education places will be funded on the same per place amount as in 2023 to 2024, unless the authority has decided to increase the amount. Funding for places that are intended for, or occupied by, 16 to 19-year-old pupils should be included. Nursery places in special schools should also be included.

Some institutions provide more than one of these types of education and the form therefore provides 3 columns that can be used for each institution. Local authorities should classify each institution under its formal designation as a special school, PRU or hospital school (a type of special school serving a hospital), which will normally indicate its predominant type of place.

Please note, the funding amount in the columns should be calculated by using the rate per place and multiplying it by the number of places. However, if the place numbers planned for April to August and September to March are different, then a pro rata calculation has to be carried out. Part year per place amounts should be calculated on a pro rata basis for five-twelfths and seven-twelfths respectively.

16 to 19 providers follow an academic year running from August to July. Where there are changes to the place numbers for 16 to 19-year-olds between academic years, funding should be calculated by multiplying the place numbers by one-third and two-thirds respectively.

Special units and resourced provision in mainstream schools

A new section was added to this table from 2018 to 2019 for local authorities to show the number of places and total place funding for special units and resourced provision attached to mainstream nursery, primary and secondary schools. These are the amounts included within the schools’ delegated budgets.

Include nursery places if they are funded from the local authority’s high needs budget. Include places for 16 to 19-year-olds in special units and resourced provision only. The total place funding amounts should be included within line 1.0.2. The schools’ top-up funding for pupils in the special units or resourced provision is shown in line 1.2.1.

Special units and resourced provision receive £6,000 per place for places occupied by pupils on the roll of the school and £10,000 per place for other places. The funding amount in the columns should be calculated by using the rates per place (£6,000 or £10,000) and multiplying those by the appropriate number of places. The total funded place numbers are determined locally for maintained schools or through the place change process for institutions we fund. Information provided by local authorities through the APT is then used to inform the number of places funded at £6,000.

If the total place numbers planned for April to August and September to March are different, a pro rata calculation must be carried out. Part year per-place amounts should be calculated on a pro rata basis for five-twelfths and seven-twelfths respectively.

School name

The names of all mainstream schools with special units/resourced provision, special schools, PRUs and hospital schools maintained by the authority before the start of the financial year will be pre-populated by DfE. 

Local authorities are able to add or remove schools where required.

DfE number

DfE will enter the school’s number opposite the name of each school.

School or unit opening/closing in year?

The dropdown section allows you to indicate opposite the name of a school whether it (or its unit or resourced provision) is closing or opening during the financial year. There is the option to leave blank. If, for example, 2 schools were merging to form one new school, there would be 3 entries, 2 for each of the closing schools and one for the new school being opened.

Full-year data should be provided for schools converting to become academies.

Date opening/closing

Enter the date that the maintained school or its unit is intended to close or open in the form dd/mm/yyyy.

Places

The number of places entered in the following columns should be the number of places to be funded in the academic year 2023 to 2024 (for the period April to August 2024), and to be funded in the academic year 2024 to 2025 (for the period September 2024 to March 2025). These are the full-year place numbers and are not to be pro-rated for the part of the year that falls in the 2024 to 2025 financial year. Where there are changes to the place numbers between academic years, in calculating the total funding for the financial year multiply the annual place number for each academic year by the appropriate place value calculated using the five-twelfths plus seven-twelfths split.

SEN places

April 2024 to August 2024

September 2024 to March 2025

Include the number of places for pupils with EHC plans, funded at £10,000 per place per annum. In special units or resourced provision attached to mainstream schools, the funding per place is either £6,000 or £10,000 per place per annum.

SEN place funding April 2024 to March 2025

This is the total cost of the places in the previous columns. For all places except those in special units and resourced provision attached to mainstream schools, this should be £10,000 multiplied by the number of places in the previous columns. The only exception is where the place amount is reduced because the school is opening or closing during the financial year. When the place numbers change in September 2024, multiply the place number for the period April to August 2024 by £4,167 (five-twelfths of £10,000), and the place number for the period September 2024 to March 2025 by £5,833 (seven-twelfths of £10,000) to get the total for the financial year April 2024 to March 2025.

For places in special units and resourced provision attached to mainstream schools, the total cost of the places should be £6,000 multiplied by the number of places funded at that rate, and £10,000 multiplied by the number of places funded at that rate. The only exception is where the place amount is reduced because the unit or resourced provision is opening or closing during the financial year. When the place numbers change in September 2024, multiply the place number for the period April to August 2024 by £2,500 (five-twelfths of £6,000) or £4,167 (five-twelfths of £10,000), and the place number for the period September 2024 to March 2025 by £3,500 (seven-twelfths of £6,000) or £5,833 (seven-twelfths of £10,000) to get the total for the financial year April 2024 to March 2025.

AP places

April 2024 to August 2024

September 2024 to March 2025

Include the number of places to provide AP for pupils at £10,000 per place per annum.

AP place funding

April 2024 to March 2025

This is the total cost of the places in the previous columns. Multiply the place number for the period April to August 2024 by £4,167 (five-twelfths of £10,000), and the place number for the period September 2024 to March 2025 by £5,833 (seven-twelfths of £10,000) to get the total for the financial year April 2024 to March 2025. The only exception to this calculation is where the place amounts are reduced because the school is opening or closing during the financial year.

Hospital education places

April 2024 to August 2024

September 2024 to March 2025

Hospital education places must be funded at the same per place amount as in 2023 to 2024, unless the authority has decided to increase the amount. Hospital education is defined as where the child is being provided with such education by reason of a decision made by a medical practitioner (as opposed to by an educationalist).

The funding for the number of hospital education places in special schools (including so-called hospital schools) or PRUs (sometimes known as medical PRUs) is the amount which must be included in line 1.0.2. It should exclude expenditure on hospital education services that are not funded as places at these providers, which should instead be included in line 1.2.6. Please note that there should be no duplication of hospital education place funding included in the high needs places table and the amounts in line 1.2.6 of the local authority table, as the place funding should be included in line 1.0.2.

Where appropriate, the funding for hospital education places should also include any high needs funding paid to maintained special schools and PRUs providing hospital education, for teachers’ pay and pensions (employer contributions) costs, under the additional condition of grant attached to local authorities’ DSG (section 3.6(6)).

Hospital education place funding

April 2024 to March 2025

Total cost of the places in the previous column. This should be the amount per place multiplied by the number of places in the previous columns. See above for how to work out the amount for the financial year April 2024 to March 2025 if the place number changes in September 2024.

Total Place funding net

April 2024 to March 2025

Total place funding for the institution (the sum of the columns for SEN place funding, AP place funding and hospital education place funding).

The early years collection and the proforma

This section of the return records the total local authority DSG spending on early years, including:

• the universal 15 hours entitlement for 3 and 4-year-olds
• the additional 15 hours for eligible working parents of 3 and 4-year-olds
• the 15 hours entitlement for disadvantaged 2-year-olds
• the 15 hours entitlement for eligible working parents of 2-year-olds
• the 15 hours entitlement for eligible working parents of 9 month to 2-year-olds
• supplementary funding for maintained nursery schools
• any budget allocated for the early years SEN inclusion fund
• EYPP
• DAF
• any other DSG expenditure on early years

The planned budget information from section 251 will be used to monitor compliance with all the early years funding rules. Further details about the funding rules is available in the early years entitlements operational guide for local authorities.

The early years entitlement information recorded on COLLECT will be output into the early years proforma. The proforma is split into the:

• local funding formula for 3 and 4-year-olds (for both the universal 15 hours and additional 15 hours)
• local funding formula for disadvantaged 2-year-olds
• local funding formula for working parents of 2-year-olds
• local funding formula for working parents of 9 month to 2-year-olds
• special educational needs inclusion fund (SENIF) - funding paid directly to providers
• contingency and centrally retained spending
• EYPP
• DAF

Each section on local funding formulae and funding paid directly to providers for SENIF is also split into provider types, giving data for maintained nursery schools, nursery classes and PVI settings.

DfE will publish the early years proforma for each local authority as part of the early years benchmarking information later in the year.

The proforma will make publicly accessible more detailed information on local authorities’ funding for early years. The proforma is intended to increase transparency in local authority funding decisions and enable providers and others to make comparisons between different areas. When completing the return, please provide a comprehensive breakdown as far as possible on base rates, supplements, special educational needs and disability services and central spend activities. This will enable local authorities, providers and DfE to better understand how local authorities are using their early years budgets.

Pass-through rate for early years entitlements

All local authorities are required to plan to pass-through at least 95% of their funding from the government to early years providers for each of the respective entitlements, that is:

• the entitlements for 3 and 4-year-olds (both the universal 15 hours and additional 15 hours)
• the entitlement for disadvantaged 2-year-olds
• the entitlement for eligible working parents of 2-year-olds (new entitlement from 1 April 2024)
• the entitlement for working parents of 9 month to 2-year-olds (new entitlement from September 2024)

Please note: For 3 and 4-year-olds, the pass-through requirement will apply to the universal and additional hours in combination. But for 2-year-olds and under, the requirement will apply to each of the entitlements individually.

We have included a field at the start of the early years proforma report to show your pass-through rate for each entitlement as you plan your budgets. These rows are calculated automatically so you can determine compliance and adjust your budget accordingly if needed. You can view the pass-through rate calculations when you download the early years proforma report in COLLECT.

To be compliant, the calculated pass-through rate must be at least 95.0% or more. That is, rounding up 94.9% will not be considered as meeting the requirement. The pass-through rates will be shown to one decimal place in the early years proforma.

The pass-through rates will be published when we publish the early years proforma.

Further details on how this is calculated is included in the early years entitlements operational guide.

Early years local funding formula for 3 and 4-year-olds

Base rates per hour by provider type

Description

In the description, please state your base rates for provider types you are delivering funded places through for 3 and 4-year-olds. Please note all local authorities must use a universal base rate of funding for all providers.

Unit value

The amount entered for base rates must be an hourly rate. The unit value column is not fixed to hourly rate in COLLECT, therefore please make sure only the ‘per hour’ unit is entered.

Number of units

This is the total number of hours you expect to fund in the financial year. This has been split for the universal 15 hours and the additional 15 hours for base rate only (we do not require the number of units to be split between universal and additional 15 hours for the other formula factors). Whilst you should use the same hourly rate (unit value) for universal and additional 15 hours, you need to record the planned government entitlement hours to be delivered separately.

Please note, the total number of hours (for universal 15 hours and additional 15 hours) in the base line rate will be used for calculating the 95% pass-through funding to providers.

The unit value and the number of units is split by provider types:

• PVI – include budget for private, voluntary and independent early years providers here, including childminders and academies
• nursery school – include budget for maintained nursery schools (MNS) here which is defined in Section 22(9) of the School Standards and Framework Act 1998, as a nursery school which is maintained by a local education authority and is not a special school (a maintained nursery school is a school which is wholly or mainly used for the education of children aged 2 and over but under compulsory school age)
• primary nursery class – include the budget here for maintained primary or secondary schools with nursery classes

Supplements

Please provide, in written format, a short explanation of your supplement payments.

We expect local authorities to fund their providers in the same way for both the universal 15 hours and additional 15 hours for working parents, and not to distinguish between the two. This means you should use the same base rate and same supplements for both entitlements. For the early years proforma, we do not expect you to record the ‘number of units’ for supplements separately for universal and additional 15 hours. You can include the combined total ‘number of units’ for both sets of hours (we only need the hours recorded separately for the base rate).

We have included the mandatory supplement of deprivation for 3 and 4-year-olds and other permitted discretionary early years supplements (quality, flexibility, rurality/sparsity and English as an additional language) in the proforma. Please note the quality supplement should only relate to funding to support workforce qualifications, to support some of the costs for which the teachers’ pay and pensions grants were intended and /or system leadership. If you do not use the other permitted supplements, please leave the relevant rows blank. If your local 3 and 4-year-old formula uses a lump sum factor for maintained nursery schools, please enter in the MNS lump sums funding section (see below, line 3 of the early years table).

Description

In the description, please state what the qualifying criteria are for each of your different supplements. Please include all supplements for each of the factors (adding more lines if necessary). For example, if you have a quality supplement for recognising workforce qualifications or system leadership, and they are different for maintained and PVI provision, please use separate rows for each, with a brief summary of what they are paid for. The proforma is intended to be standalone, so descriptions of supplements should not make reference to other information not contained in the proforma (such as ‘same as school formula factors’).

Amount and unit

In the amount column please record the funding paid to providers and whether this amount is per hour, per child or a lump sum.

Percentage of funding provided through supplements

Please note, the total value of supplements used must not be more than 12.0% of the total value of planned funding to be passed through to providers for delivering the government entitlement hours. This row is calculated automatically so you can determine compliance on the 12% supplement funding cap. To be compliant, the funding provided through supplements cannot be more than 12%. That is, rounding down 12.4% will not be considered as meeting the requirement. The supplements funding percentage will be shown to 1 decimal place in the early years proforma. You can view the calculated supplements percentage when you download the ‘EY proforma table’ report in COLLECT.

Further details on how this is calculated is included in the early years entitlements operational guide.

MNS lump sums (if applicable)

This column is only for maintained nursery schools. If your local 3 and 4-year-old formula uses a lump sum factor for maintained nursery schools, this should be included here. If you do not have additional lump sum budgets for MNSs, please leave this section blank.

Description

Please provide a brief description of what the MNS lump sums are paid for, adding separate rows if necessary.

Amount and unit

In the amount column please record the funding paid to MNSs and whether this amount is per hour, per child, or a lump sum.

Total funding for early years local funding formula for 3 and 4-year-olds

This row is calculated automatically.

Early years local funding formulae for children aged 2 years old

Local authorities should complete a separate section for each of the entitlements for children aged 2 years old, that is:

• the entitlement for disadvantaged 2-year-olds
• the entitlement for eligible working parents of 2-year-olds (new entitlement from 1 April 2024)

Even if you have one single formula for both 2-year-old entitlements, you should still complete two separate entries in the proforma for both offers. This is because the pass-through rate of 95% will be applied separately to both entitlement funding streams.

Please note the requirement that the final hourly funding rate (that is, the base rate plus supplements, if applicable) paid to providers for the disadvantaged 2-year-old entitlement, must be at least equal to (or higher than) the final hourly funding rate paid for the working parents of 2 year-olds entitlement within the same provider within the local authority. This means local authorities must ensure that no provider attracts a final hourly funding rate for a child on the disadvantaged 2-year-old entitlement that is lower than that provider’s rate for a child taking up the 2-year-old working parent entitlement.

Early years local funding formula for disadvantaged 2-year-olds)

Base rates per hour by provider type

Description

In the description, please state your base rates for the provider types you are delivering funded places through for disadvantaged 2-year-olds. Please note all local authorities must use a universal base rate of funding for all providers.

Amount and unit

Please record here the total number of hours you expect to fund in the financial year for disadvantaged 2-year-olds, split by provider type. The unit value entered for base rates must be an hourly rate. The unit value column is not fixed to hourly rate in COLLECT, therefore please make sure only the ‘per hour’ unit is entered.

Supplements

Please provide a short explanation of your supplement payments.

We have included the permitted discretionary early years supplements (deprivation, quality, flexibility, rurality/sparsity and English as an additional language) in the proforma. If you do not use supplements for disadvantaged 2-year-olds, leave the relevant rows blank.

Description

In the description, please specify what each of the different supplements are paid for. Please include all supplements for each of the factors, including what the qualifying criteria are for each of your different supplements (adding more lines if necessary). For example, if the supplements differ for different providers, use separate rows for each provider with a brief description of what they are paid for.

Amount and unit

The amount for supplements can either be an hourly rate, a rate per child or a lump sum. In the amount column, please record the funding paid to providers and in the unit column, use the dropdown box to select whether this amount is per hour, per child or a lump sum.

Percentage of funding provided through supplements

Please note, the total value of supplements used must not be more than 12.0% of the total value of planned funding to be passed through to providers for delivering the government entitlement hours. This row is calculated automatically so you can determine compliance on the 12% supplement funding cap. To be compliant, the funding provided through supplements cannot be more than 12%. That is, rounding down 12.4% will not be considered as meeting the requirement. The supplements funding percentage will be shown to 1 decimal place in the early years proforma. You can view the calculated supplements percentage when you download the ‘EY proforma table’ report in COLLECT.

Further details on how this is calculated is included in the early years entitlements operational guide.

Additional funding for disadvantaged hourly rate

If, after setting their local formulae, a local authority finds there are providers for whom the hourly funding rate for disadvantaged 2-year-olds is lower than the rate for working parents of 2-year-olds, and the local authority determines it is either unaffordable or undesirable to adjust their overall local formulae, they are permitted to address the issue for the affected providers only. They could do this by providing an additional amount in their disadvantaged 2-year-old formula, which would provide a top up to the hourly rate for disadvantaged 2-year-olds for the providers in question, so that the final hourly funding rate is at least equal to those providers’ final hourly rate for working parents of 2-year-olds. The total amount of top-ups used by provider type, should be recorded here.

This additional funding will not be included in the calculation of the 12% supplements cap. However, it will be included within the pass-through rate calculation for the disadvantaged 2-year-old entitlement.

Total funding for early years local funding formula for disadvantaged 2-year-olds

This row is calculated automatically.

Early years local funding formula for eligible working parents of 2-year-olds

Base rates per hour by provider type

Description

In the description, please state your base rates for the provider types you are delivering funded places through for eligible working parents of 2-year-olds entitlement. Please note all local authorities must use a universal base rate of funding for all providers.

Amount and unit

Please record here the total number of hours you expect to fund in the financial year for the eligible working parents of 2-year-olds entitlement, split by provider type. The unit value entered for base rates must be an hourly rate. The unit value column is not fixed to hourly rate in COLLECT, therefore please make sure only the ‘per hour’ unit is entered.

Supplements

Please provide a short explanation of your supplement payments.

We have included the permitted discretionary early years supplements (deprivation, quality, flexibility, rurality/sparsity and English as an additional language) in the proforma. If you do not use supplements for the working parents of 2-year-olds entitlement, leave the relevant rows blank.

Description

In the description, please specify what each of the different supplements are paid for. Please include all supplements for each of the factors, including what the qualifying criteria are for each of your different supplements (adding more lines if necessary). For example, if the supplements differ for different providers, use separate rows for each provider with a brief description of what they are paid for.

Amount and unit

The amount for supplements can either be an hourly rate, a rate per child or a lump sum. In the amount column, please record the funding paid to providers and in the unit column, use the drop-down box to select whether this amount is per hour, per child or a lump sum.

Percentage of funding provided through supplements

Please note, the total value of supplements used must not be more than 12.0% of the total value of planned funding to be passed through to providers for delivering the government entitlement hours. This row is calculated automatically so you can determine compliance on the 12% supplement funding cap. To be compliant, the funding provided through supplements cannot be more than 12%. That is, rounding down 12.4% will not be considered as meeting the requirement. The supplements funding percentage will be shown to 1 decimal place in the early years proforma. You can view the calculated supplements percentage when you download the ‘EY proforma table’ report in COLLECT.

Further details on how this is calculated is included in the early years entitlements operational guide.

Total funding for early years local funding formula for eligible working parents of 2-year-olds

This row is calculated automatically.

Early years local funding formula for eligible working parents of children aged 9 months to 2 years

Base rates per hour by provider type

Description

In the description, please state your base rates for the provider types you are delivering funded places through for eligible working parents of children aged 9 months to 2 years. Please note all local authorities must use a universal base rate of funding for all providers.

Amount and unit

Please record here the total number of hours you expect to fund in the financial year for the eligible working parents of children aged 9 months to 2 years entitlement, split by provider type. The unit value entered for base rates must be an hourly rate. The unit value column is not fixed to hourly rate in COLLECT, therefore please make sure only the ‘per hour’ unit is entered.

Supplements

Please provide a short explanation of your supplement payments.

We have included the permitted discretionary early years supplements (deprivation, quality, flexibility, rurality/sparsity and English as an additional language) in the proforma. If you do not use supplements for the working parents of children aged 9 months to 2 years entitlement, leave the relevant rows blank.

Description

In the description, please specify what each of the different supplements are paid for. Please include all supplements for each of the factors, including what the qualifying criteria are for each of your different supplements (adding more lines if necessary). For example, if the supplements differ for different providers, use separate rows for each provider with a brief description of what they are paid for.

Amount and unit

The amount for supplements can either be an hourly rate, a rate per child or a lump sum. In the amount column, please record the funding paid to providers and in the unit column, use the dropdown box to select whether this amount is per hour, per child or a lump sum.

Percentage of funding provided through supplements

Please note, the total value of supplements used must not be more than 12.0% of the total value of planned funding to be passed through to providers for delivering the government entitlement hours. This row is calculated automatically so you can determine compliance on the 12% supplement funding cap. To be compliant, the funding provided through supplements cannot be more than 12%. That is, rounding down 12.4% will not be considered as meeting the requirement. The supplements funding percentage will be shown to 1 decimal place in the early years proforma. You can view the calculated supplements percentage when you download the ‘EY proforma table’ report in COLLECT.

Further details on how this is calculated is included in the early years entitlements operational guide.

Total funding for early years local funding formula for working parents of 9-month to 2-year-olds

This row is calculated automatically.

Special educational needs inclusion fund (SENIF) (funding paid directly to providers)

Local authorities should establish SENIFs for all children with SEN, who are eligible for or taking up any of the early years entitlements. The SENIF is to resource and support the needs of individual children with low-level SEN.

The SENIF can be used in the form of additional funding paid directly to providers for supporting children with SEN; or centrally used to support specialist local authority SEN services in the local area.

This column should only be used to record the amount of funding paid directly to providers for SENIF.

Please note, only the amount paid directly to providers for SENIF will be considered within the 95% pass-through rate calculation. Therefore, only include the planned budget you intend to directly fund providers here. If you plan to use any of the SENIF funding for providing in-kind SEN specialist support to providers, this should be budgeted under central spend (section 13 of the early years table).

Description

Whilst some local authorities may choose to pool funding and hold one SENIF for use across all of the early years entitlements, the notional amount allocated to be spent on children accessing an entitlement should be broken down and recorded against the respective entitlement funding stream, i.e. a quantity given for SENIF funding for each of the entitlements. This is because the pass-through calculation will be applied to each individual funding stream. A description of what the qualifying criteria are for your local SENIF, should also be included, adding additional rows for different criteria if necessary.

Amount

In the amount column please record the planned budget for the SENIF funding paid directly to providers, split by provider type. Since local authorities can pool funding from either or both of their early years and high needs DSG funding blocks, please provide a breakdown of the amount set aside for the SENIF from the 2 funding blocks – separate rows are included in early years table sections 11a, 11b, 11c and 11d to record the amounts allocated from the different blocks.

The budget (sections 11a, 11b, 11c and 11d of the early years table) for each entitlement will be counted within the high pass-through rate funding calculation for the respective funding stream.

Total funding for SENIF (funding paid directly to providers)

This row is calculated for each entitlement automatically.

Early years contingency funding

Please briefly explain what you include in contingency funding for each of the entitlements and the amounts allocated to it. Contingency funding should be recorded separately for children aged 9 months to 2 years, disadvantaged 2-year-olds, the working parents of 2-year-olds and for 3 and 4-year-olds, with a comprehensive breakdown as far as possible of what the contingency funding is intended to cover (add more lines if necessary).

This expenditure will also need to be included in line 1.3.1 – ‘Central expenditure on early years entitlement’.

Please note, contingency funding will be counted within the pass-through rate for providers.

Early years centrally retained funding

This is intended to help providers and others understand how centrally retained funding is used by local authorities. This information will produce a national picture on how central early years spend is being used to help improve government-funded early education and support child development. Please briefly explain what elements are included in centrally retained spending and the amounts allocated to each of these.

Centrally retained funding should be recorded separately for each of the entitlements, with a comprehensive breakdown as far as possible on what the funding is intended to cover (add more lines if necessary).

If any of the centrally retained funding is used to provide in-kind specialist SENIF support for providers (for example, early years speech and language therapy services), that funding should be recorded here. Separate lines are provided to record the support element of the SENIF within the central budget for each separate entitlement, where appropriate.

Local authorities are required to secure schools forum approval for early years centrally retained spend, and the proforma could usefully include a headline summary of information made available to schools forums to secure this approval.

This expenditure will also need to be included in line 1.3.1 – ‘Central expenditure on early years entitlement’ in the local authority table.

Total funding for early years central expenditure

This row is calculated for each entitlement automatically.

The total planned expenditure in sections 12 and 13 of the early years proforma should match the gross figure on line 1.3.1 of the local authority table.

Early Years Pupil Premium (EYPP)

Please record your budget allocation for the EYPP for children accessing the entitlements for eligible working parents of children aged 9 months to 2 years, disadvantaged 2-year-olds, eligible working parents of 2-year-olds and for 3 and 4-year-olds. Information relating to how allocation for EYPP is split by provider type is not required.

Please note, that this should be recorded separately from all other early years spend and should be recorded separately from information relating to the deprivation supplement.

Total funding EYPP

This row is calculated for each entitlement automatically.

Disability Access Fund (DAF)

Please record your budget allocation for the DAF for children accessing the entitlements for eligible working parents of children aged 9 months to 2 years, disadvantaged 2-year-olds, eligible working parents of 2-year-olds and for 3 and 4-year-olds. You will only need to record your total planned budget for DAF. Information relating to how allocation for DAF is split by provider type is not required.

Total funding for early years DAF

This row is calculated for each entitlement automatically.