40 Pupils permanently excluded from, or leaving, maintained schools
(1) Where a pupil is permanently excluded from a school maintained by a local authority (other than a special school, a pupil referral unit, or a place which the local authority has reserved for children with special educational needs) (“the excluding school”) the local authority must redetermine the excluding school’s budget share in accordance with paragraph (2).
(2) The excluding school’s budget share must be reduced by A× (B/52) + C where—
(a) A is the amount determined by the local authority in accordance with Chapter 1 of this Part that would be attributable to a pupil of the same age and personal circumstances as the pupil in question at primary or secondary schools maintained by the local authority for the full funding period;
(b) B is either—
(i) the number of complete weeks remaining in the funding period calculated from the relevant date; or
(ii) where the permanent exclusion takes effect on or after 1st April in a school year at the end of which pupils of the same age, or age group, as the pupil in question normally leave that school before being admitted to another school with a different pupil age range, the number of complete weeks remaining in that school year calculated from the relevant date; and
(c) C is the amount of the adjustment made to the school’s budget share under a financial adjustment order.
(3) Where a pupil has been permanently excluded from the excluding school and is admitted to another school maintained by a local authority (other than a special school, a pupil referral unit, or to a place which the local authority has reserved for children with special educational needs) (“the admitting school”) in the funding period, the local authority must redetermine the admitting school’s budget share in accordance with paragraphs (4) and (5).
(4) The admitting school’s budget share must be increased by an amount which is not less than D × (E/F) where—
(a) D is the amount by which the local authority reduced the budget share of the excluding school, or would have reduced the budget share if that school had been maintained by the local authority, except that any reduction in the excluding school’s budget share made under a financial adjustment order must not be taken into account for these purposes;
(b) E is the number of complete weeks remaining in the funding period during which the pupil is a pupil at the admitting school; and
(c) F is the number of complete weeks remaining in the funding period calculated from the relevant date.
(5) In redetermining the admitting school’s budget share, the local authority may increase it by any amount up to the amount of the adjustment made to the excluding school’s budget share under a financial adjustment order.
(6) Where a permanently excluded pupil is subsequently reinstated by the governing body of the school, the school’s budget share must be increased by an amount which is no less than G × (H/I) where—
(a) G is the amount by which the local authority reduced the school’s budget share under paragraph (2);
(b) H is the number of complete weeks remaining in the funding period during which the pupil is reinstated; and
(c) I is the number of complete weeks remaining in the funding period calculated from the relevant date.
(7) Paragraphs (1) and (2) also apply where a pupil leaves a maintained school (other than a special school, a pupil referral unit, or a place which the local authority has reserved for children with special educational needs) for reasons other than permanent exclusion and is receiving education funded by a local authority other than at a school which is maintained by that local authority.
(8) For the purposes of paragraph (2)(a), the amount attributable to a pupil is the sum of the amounts determined in accordance with the local authority’s formula, by reference to pupil numbers rather than by reference to any other factor or criterion not dependent on pupil numbers, except that where a sixth form grant is payable in respect of a pupil, the amount attributable to that pupil in the funding period is £4,843.
(9) Where a pupil in respect of whom a pupil premium is payable has been permanently excluded from a school maintained by a local authority (“the excluding school”), the local authority must redetermine the excluding school’s budget share in accordance with paragraph (10).
(10) The excluding school’s budget share must be reduced by J × (K/52) where—
(a) J is the amount of the pupil premium allocated to the excluding school for the funding period in respect of that child; and
(b) K is either—
(i) the number of complete weeks remaining in the funding period calculated from the relevant date; or
(ii) where the permanent exclusion takes effect on or after 1st April in a school year at the end of which pupils of the same age, or age group, as the pupil in question normally leave that school before being admitted to another school with a different pupil age range, the number of complete weeks remaining in that school year calculated from the relevant date.
(11) Where a pupil in respect of whom a pupil premium is payable has been permanently excluded from a school maintained by a local authority and admitted to another school maintained by a local authority (“the admitting school”) in the funding period, the local authority must redetermine the budget share of the admitting school in accordance with paragraph (12).
(12) The admitting school’s budget share must be increased by an amount which is not less than L × (M/N) where—
(a) L is the amount by which the local authority reduced the budget share of the excluding school or would have reduced the budget share had that school been maintained by the local authority;
(b) M is the number of complete weeks remaining in the funding period during which the pupil is a pupil at the admitting school; and
(c) N is the number of complete weeks remaining in the funding period calculated from the relevant date.
(13) Where a permanently excluded pupil in respect of whom a pupil premium is payable is subsequently reinstated by the governing body of the school, the school’s budget share must be increased by an amount which is no less than O × (P/Q) where—
(a) O is the amount by which the local authority reduced the school’s budget share under paragraph (10);
(b) P is the number of complete weeks remaining in the funding period during which the pupil is reinstated; and
(c) Q is the number of complete weeks remaining in the funding period calculated from the relevant date.
(14) Paragraphs (9) and (10) also apply where a pupil in respect of whom a pupil premium is payable leaves a maintained school for reasons other than permanent exclusion and is receiving education funded by a local authority other than at a school which is maintained by that local authority.
(15) For the purposes of this regulation—
(a) “the relevant date” is—
(i) the sixth school day following the date on which the pupil has been permanently excluded; or
(ii) where paragraphs (7) or (14) apply, the sixth school day following the date on which the pupil leaves the school; and
(b) “a financial adjustment order” means an order for the adjustment of a school’s budget share made under regulation 25(5)(b) of the School Discipline (Pupil Exclusions and Reviews) (England) Regulations 2012 in respect of the exclusion of the pupil from the excluding school.
41 Correction of errors and changes in non-domestic rates
(1) A local authority may at any time during the funding period redetermine a maintained school’s budget share, or the amount allocated to a relevant early years provider, for the funding period or any previous funding period in order to correct an error in a determination or redetermination made under these Regulations or any previous regulations made under section 47 or 47ZA of the 1998 Act (“preceding regulations”), whether arising from a mistake as to the number of pupils at the school or otherwise, and any such redetermination will take effect in the next financial year following the funding period.
(2) In so far as any redetermination under paragraph (1) would require the amount that would otherwise have been the budget share of a school to be reduced, it may not be reduced to a figure which is lower than that which could have been allocated to that school under these Regulations or under the preceding regulations in force during the funding period in which the error occurred.
(3) A local authority may redetermine a school’s budget share to take into account any changes in that school’s non-domestic rate liability in relation to the funding period or any previous funding period.
42 Alternative arrangements approved by the Secretary of State
(1) Subject to paragraph (2), on application by a local authority, the Secretary of State may authorise the local authority to—
(a) disregard the limits referred to in paragraph 3 of Schedule 2 when deducting any expenditure referred to in regulation 8(4) (historic commitments);
(b) disregard the requirements in regulation 8(9) (deductions etc. of expenditure relating to deficit in the budget for a previous funding period);
(c) deduct any expenditure referred to in regulation 8(14)(a) (expenditure falling outside Schedule 2);
(d) include additional factors or criteria in its formula under regulation 10(1) (formula for determining budget shares) where the nature of a school’s premises exceptionally gives rise to significant additional cost;
(e) include additional factors or criteria that the local authority proposes to include in its formula under regulation 10(3) (early years single funding formula);
(f) alter the operation of regulation 11(3) (additional costs - pupils with special educational needs);
(g) determine (including redetermine) budget shares of schools maintained by it;
(h) determine (including redetermine) amounts to be allocated in respect of nursery classes in schools maintained by it;
(i) determine (including redetermine) amounts to be allocated to relevant early years providers in its area;
(j) disregard regulation 13 (pupil numbers);
(k) alter the operation of regulation 14(3) or (5) (places in pupil referral units or in hospital education);
(l) alter the operation of regulation 21 (the sparsity factor) in respect of particular schools;
(m) alter the operation of regulation 27 (minimum per pupil amount) in respect of particular schools;
(n) alter any or all of the year group values D, E or F set out in regulation 27(4) for all the schools that are subject to the formula decided by the local authority under regulation 10(1);
(o) alter the operation of regulation 28 (minimum funding guarantee) and Schedule 3 in respect of particular schools;
(p) alter the operation of regulation 30 (new schools, merged schools and closing schools) in respect of particular schools;
(q) alter the operation of regulation 37 (early years 96% requirement);
(r) disregard the requirement in regulation 39(4) (requirement for a provider’s per child amount in respect of disadvantaged two year olds to be equal to, or more than, the per child amount in respect of working parent two year olds).
(2) The Secretary of State may authorise the matters in paragraph (1) to such extent as the Secretary of State may specify in accordance with arrangements approved in place of the arrangements provided for by these Regulations.
A scheme prepared by a local authority under section 48(1) of the 1998 Act must deal with the matters connected with the financing of schools maintained by the local authority set out in Schedule 4 (contents of schemes).
44 Approval by the schools forum or the Secretary of State of proposals to revise schemes
(1) Where a local authority submits a copy of its proposals to revise its scheme to its schools forum for approval under paragraph 2A(3)(b) of Schedule 14 to the 1998 Act, the members of the schools forum who represent schools maintained by the local authority may—
(a) approve the proposals;
(b) approve the proposals with modifications; or
(c) refuse to approve the proposals.
(2) Where the schools forum approves the proposals to revise the scheme, it may specify the date on which the revised scheme is to come into force.
(3) The local authority may apply to the Secretary of State for approval of proposals submitted under paragraph 2A(3)(b) of Schedule 14 to the 1998 Act where—
(a) the schools forum refuses to approve the proposals, or approves them with modifications which are not acceptable to the local authority; or
(b) the local authority is not required to establish a schools forum for its area.
(4) The Secretary of State may—
(a) approve the proposals;
(b) approve the proposals with modifications; or
(c) refuse to approve the proposals.
(5) When approving proposals, the Secretary of State may specify the date on which the revised scheme is to come into force.
(6) No revised scheme is to come into force unless approved by the schools forum or the Secretary of State in accordance with this regulation.
(1) A local authority—
(a) must publish its scheme on a website which is accessible to the general public; and
(b) may publish it elsewhere.
(2) Whenever a local authority revises the whole or part of its scheme, it must publish the scheme as revised on a website which is accessible to the general public by the date that the revisions are due to come into force, together with a statement that the revised scheme comes into force on that date.
Schedule 1 CLASSES OR DESCRIPTIONS OF PLANNED EXPENDITURE PRESCRIBED FOR THE PURPOSES OF THE NON-SCHOOLS EDUCATION BUDGET OF A LOCAL AUTHORITY
Regulation 4
Special educational provision
1 Expenditure on services provided by educational psychologists.
2 Expenditure in connection with the local authority’s functions under sections 22, 36, 37 and 44 of the 2014 Act (which functions relate to the identification of children and young people with special educational needs and disabilities; the assessment of education, health and care needs; and the preparation and review of EHC plans).
3 Expenditure on monitoring the provision for pupils in schools for the purposes of disseminating good practice in relation to, and improving the quality of educational provision for, children with special educational needs.
4 Expenditure on collaboration with other statutory and voluntary bodies to provide support for children with special educational needs.
5 Expenditure in connection with—
(a) the provision of parent partnership services (that is, services provided under section 32 of the 2014 Act to give advice and information to parents of children with special educational needs), or other guidance and information to such parents which, in relation to pupils at a school maintained by the local authority, are in addition to the information usually provided by the governing bodies of such schools; and
(b) arrangements made by the local authority with a view to avoiding or resolving disagreements with the parents of children with special educational needs.
6 Expenditure on carrying out the local authority’s child protection functions under the 1989 Act, functions under section 175 of the 2002 Act (duties in relation to welfare of children), and other functions relating to child protection.
7 Expenditure incurred in entering into, or subsequently incurred under, an arrangement under section 31 of the Health Act 1999 or regulations made under section 75 of the National Health Service Act 2006 (arrangements between NHS bodies and local authorities).
Access to education
8 Expenditure in relation to planning and managing the supply of school places, including the local authority’s functions in relation to the establishment, alteration or discontinuance of schools under Part 2 of, and Schedule 2 to, the 2006 Act.
9 Expenditure in relation to the local authority’s functions under sections 508A to 509A of the 1996 Act.
10 Expenditure on the provision of support for students under regulations made under section 1(1) of the Education Act 1962 and under section 22 of the Teaching and Higher Education Act 1998.
11 Expenditure on discretionary grants paid under section 1(6) or 2 of the Education Act 1962 (awards for designated and other courses).
12 Expenditure on the payment of 16-19 Bursaries.
Additional education and training for children, young persons and adults
13 Expenditure on the provision of education and training and of organised leisure time occupation, and other provision under sections 15ZA, 15ZC and 15B of the 1996 Act.
14 Expenditure on the provision by the local authority, under sections 507A and 507B of the 1996 Act of recreation, social and physical training, educational leisure time activities and recreational leisure time activities.
Other functions
15 Expenditure in pursuance of a binding agreement, where the other party is a local authority, or the other parties include one or more local authorities, in relation to the operation of a facility provided partly, but not solely, for the use of schools.
16 Expenditure on making pension payments, other than in respect of staff employed in maintained schools.
17 Expenditure on insurance, other than for liability arising in connection with maintained schools or maintained school premises.
Schedule 2 CLASSES OR DESCRIPTIONS OF PLANNED EXPENDITURE PRESCRIBED FOR THE PURPOSES OF THE SCHOOLS BUDGET OF A LOCAL AUTHORITY WHICH MAY BE DEDUCTED FROM IT TO DETERMINE THE INDIVIDUAL SCHOOLS BUDGET
Regulations 6 and 8
Part 1 Historic commitments
1 CERA incurred for purposes not falling within any other paragraph of this Schedule or Schedule 1.
2 Expenditure in respect of—
(a) prudential borrowing;
(b) termination of employment costs, where the schools forum has approved the charging of these costs to the schools budget for the funding period in which they were incurred and the revenue savings achieved by the termination of employment to which they relate are equal to or greater than the costs incurred;
(c) services (often known as combined budgets) funded partly from central expenditure and partly from other budgets of the local authority or contributions from other bodies, where the expenditure relates to classes or descriptions of expenditure falling outside those in this Schedule;
(d) special educational needs transport costs; and
(e) purposes not falling within any other paragraph of this Schedule, provided that the expenditure does not amount in total to more than 0.1% of the local authority’s schools budget,
which was approved by the schools forum or the Secretary of State before 1st April 2013.
3 Any deductions under paragraph 1 or 2(a) to (e) must not exceed the amount deducted under each of the corresponding paragraphs of Part 1 of Schedule 2 to the 2024 Regulations for the previous funding period.
Part 2 Central schools expenditure
4 Expenditure due to a significant growth in pupil numbers as a result of the local authority’s duty under section 13(1) of the 1996 Act to secure that efficient primary education and secondary education are available to meet the needs of the population of its area, including expenditure resulting from the additional costs associated with establishing a new school.
5 Expenditure to be incurred due to a decline in pupil numbers in schools maintained by the local authority or in Academy schools where the most recent data provided by a local authority to the Secretary of State in accordance with regulation 3 of, and paragraphs 2 (forecasts of pupil numbers) and 4 (total capacity) of Schedule 1 to, the Information as to Provision of Education (England) Regulations 2016 indicates that—
(a) growth in pupil numbers is expected in the three years starting with the school year beginning in the funding period; and
(b) additional funding is likely to be necessary to provide for that expected growth in pupil numbers.
6 Expenditure to be incurred before the opening of new schools to fund the appointment of staff and to enable the purchase of any goods and services necessary in order to admit pupils.
7 Expenditure to make provision for extra classes in order to comply with the School Admissions (Infant Class Sizes) (England) Regulations 2012.
8 Expenditure on licences which are negotiated centrally by the Secretary of State for all publicly funded schools.
9 Expenditure on the operation of the system of admissions of pupils to schools (including expenditure incurred in carrying out consultations under section 88C(2) of the 1998 Act) and in relation to appeals.
10 Expenditure under section 16 (power to establish, assist and maintain primary or secondary schools) or 18 of the 1996 Act (power to arrange education at non-maintained schools) in making any grant or other payment in respect of fees or expenses (of whatever nature) which are payable in connection with the attendance of pupils at a school which is not maintained by any local authority.
11 Expenditure in relation to boarding fees for pupils in accordance with—
(a) sections 458 or 514 of the 1996 Act (in relation to boarding fees for pupils at a maintained school); and
(b) section 514(2) of the 1996 Act or section 10A of the 2010 Act (in relation to boarding fees for pupils at Academies or alternative provision Academies).
12 Expenditure in connection with the local authority’s functions under section 47A of the 1998 Act (establishment and maintenance of, and consultation with, schools forums).
13 Expenditure on pay arrears due to staff employed at maintained schools and other staff whose salaries are met from the schools budget, and expenditure on the costs of financing payment of such arrears, where the expenditure is not chargeable to a maintained school’s budget share under the terms of the local authority’s scheme.
Part 3 Other central education expenditure
Asset management
14 Expenditure in connection with education functions in relation to the following areas of expenditure—
(a) management of the local authority’s capital programme including preparation and review of an asset management plan and negotiation and management of private finance transactions; and
(b) landlord responsibilities of the local authority (including in relation to land leased to Academy schools and alternative provision Academies),
which is not within the description of expenditure at paragraph 78 of this Schedule.
Strategic management
15 Expenditure on education functions related to—
(a) functions of the director of children’s services and the personal staff of the director;
(b) planning for the education service as a whole;
(c) authorisation and monitoring of expenditure which is not met from the budget shares of schools maintained by the local authority, and all related financial administration;
(d) the formulation and review of the methods of allocating resources to schools maintained by the local authority, and other bodies;
(e) internal audit and other tasks necessary for the discharge of the local authority’s chief finance officer’s responsibilities under section 151 of the Local Government Act 1972 in so far as the responsibilities do not relate to maintained schools; and
(f) the preparation and review of plans involving collaboration with other local authority services or with public or voluntary bodies.
Other functions
16 Expenditure arising from the local authority’s functions under Chapter 2 of Part 6 of the 1996 Act (school attendance).
17 Expenditure in connection with the local authority’s functions in relation to the standing advisory council on religious education constituted by the local authority under section 390 of the 1996 Act or on the reconsideration and preparation of an agreed syllabus of religious education in accordance with Schedule 31 to the 1996 Act.
18 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 byelaws in relation to, restrictions on the employment of children).
19 Expenditure in relation to consultation and functions preparatory to consultation with or by governing bodies, pupils, or with other interested bodies in connection with education functions, which is not within the description of expenditure at paragraph 68 of this Schedule.
20 Expenditure on the local authority’s functions in relation to the exclusion of pupils from schools.
21 Expenditure in relation to provision of information to or at the request of the Crown and the provision of other information which the local authority is under a duty to make available, which is not within the description of expenditure at paragraph 70 of this Schedule.
22 Expenditure on education functions related to revenue budget preparation, preparation of information on income and expenditure relating to education for incorporation into the local authority’s annual statement of accounts, and the external audit of grant claims and returns relating to education, that is not within the description of expenditure at paragraph 75 of this Schedule.
23 Expenditure in connection with the local authority’s duty under regulation 9A of the School Information (England) Regulations 2008.
24 Expenditure in relation to 42.5% of the total employer contribution to the pension costs for—
(a) members of the teachers’ pension scheme to which the Teachers’ Pensions Regulations 2010 apply; and
(b) members of the Teachers’ Pension Scheme 2015 established under regulation 2 of the Teachers’ Pension Scheme Regulations 2014,
who are employed by the local authority but not employed to work in a maintained school under the direct management of the head teacher or governing body.
Part 4 Central early years expenditure
25 Expenditure on early years provision, excluding expenditure—
(a) on such provision in a maintained school;
(b) on relevant early years provision;
(c) on community early years provision; and
(d) on excluded early years provision.
26 Expenditure on determining—
(a) the eligibility for free school meals of a pupil who is being provided with early years provision;
(b) the eligibility of a child for funded early years provision;
(c) the eligibility of a child for the early years pupil premium; or
(d) the eligibility of a child for the disability access fund.
27 Expenditure on an early years contingency fund, for subsequent distribution to providers of funded early years provision, as a result of the attendance of an additional number of children.
Part 5 Children and young people with high needs
28 Expenditure in respect of pupils with special educational needs in primary and secondary schools, excluding expenditure—
(a) in respect of pupils who have not attained compulsory school age in a maintained nursery school or a nursery class in a maintained school or an Academy school;
(b) in respect of pupils in places which the local authority has reserved for children with special educational needs; or
(c) which it would be reasonable to expect would be met from a maintained school’s budget share or the general annual grant paid to an Academy school by the Secretary of State.
29 Expenditure in respect of pupils—
(a) with special educational needs at special schools and special Academies; or
(b) in places at primary or secondary schools which the local authority has reserved for children with special educational needs,
where the expenditure cannot be met from the sum referred to in regulation 14(1) or (2) (special school places or places for pupils with special educational needs) or where it would be unreasonable to expect such expenditure to be met from a maintained school’s budget share or the general annual grant paid to an Academy school by the Secretary of State.
30 Expenditure in respect of persons provided with further education who are—
(a) aged under 19 and have special educational needs; or
(b) aged 19 years or older but under 25, subject to an EHC plan, and not attending a maintained school, an Academy school, an alternative provision Academy, a non-maintained special school, or an independent school.
31 Expenditure on support services for—
(a) children who have attained compulsory school age who have an EHC plan;
(b) children who have special educational needs, who have attained compulsory school age, and who do not have an EHC plan;
(c) young people aged under 19 who have an EHC plan;
(d) young people aged under 19, who have special educational needs, and who do not have an EHC plan; and
(e) people aged 19 years or older but under 25 who are subject to an EHC plan.
32 Expenditure—
(a) in respect of funding provision specified in an EHC plan of children who have not attained compulsory school age;
(b) on services for children who are not eligible for funded early years provision, who have not attained compulsory school age, and who have special educational needs, other than expenditure in respect of which sub-paragraph (a) applies;
(c) on services for children who are eligible for funded early years provision, who have not attained compulsory school age, and who have special educational needs, other than expenditure in respect of which sub-paragraph (a) applies.
33 Expenditure for the purposes of encouraging—
(a) collaboration between special schools and primary and secondary schools to enable children and young people with special educational needs to engage in activities at primary and secondary schools;
(b) the education of children and young people with special educational needs at primary and secondary schools; and
(c) the engagement of children and young people with special educational needs at primary and secondary schools in activities at the school with children and young people who do not have special educational needs,
in cases where the local authority considers it would be unreasonable for such expenditure to be met from a maintained school’s budget share or the general annual grant paid to an Academy school or alternative provision Academy by the Secretary of State.
34 Expenditure incurred in relation to, or in connection with, education provided otherwise than at a school or post-16-institution under section 19 of the 1996 Act (exceptional provision of education in pupil referral units or elsewhere) or under section 61 of the 2014 Act (special education provision otherwise than in schools, post-16 institutions etc)—
(a) where that expenditure is incurred otherwise than in relation to education at a pupil referral unit or alternative provision Academy; or
(b) where that expenditure is incurred in relation to education—
(i) at a pupil referral unit, if it cannot be met from the sum referred to in regulation 14(3); or
(ii) at an alternative provision Academy, if it would be unreasonable to expect that expenditure to be met from the general annual grant paid to that Academy by the Secretary of State.
35 Expenditure on the payment of fees in respect of children and young people with special educational needs—
(a) at independent schools or at special schools which are not maintained by a local authority, under section 16 of the 1996 Act or section 63 of the 2014 Act (fees for special educational provision at non-maintained schools and post-16 institutions); or
(b) at an institution outside England and Wales under section 320 of the 1996 Act (Provision outside England and Wales for certain children) or section 62 of the 2014 Act.
36 Expenditure on hospital education services, aside from expenditure on hospital education places referred to in regulation 14.
37 Expenditure on special schools and pupil referral units in financial difficulty.
38 Expenditure on costs in connection with private finance initiatives and the programme known as “Building Schools for the Future” at—
(a) maintained schools which provide secondary education falling within the description in section 2(2A) of the 1996 Act;
(b) special schools;
(c) special Academies;
(d) pupil referral units;
(e) alternative provision Academies; and
(f) 16 to 19 Academies.
39 Expenditure on the provision of special medical support for individual children and young people in so far as such expenditure is not met by an NHS trust, NHS foundation trust, integrated care board or Local Health Board.
Part 6 Items that may be removed from maintained schools’ budget shares – primary and secondary schools
40 Expenditure (other than expenditure referred to in Schedule 1 or any other paragraph of this Schedule) incurred on services relating to the education of children with behavioural difficulties, and on other activities for the purpose of avoiding the exclusion of pupils from schools.
41 Expenditure on determining the eligibility of a pupil for free school meals.
42 Expenditure on making payments to, or in providing a temporary replacement for, a person on maternity, paternity, neonatal care, shared parental or adoption leave.
43 Expenditure on making payments to, or in providing a temporary replacement for, any person who is—
(a) carrying out trade union duties or undergoing training under sections 168 and 168A of the Trade Union and Labour Relations (Consolidation) Act 1992;
(b) taking part in trade union activities under section 170 of the Trade Union and Labour Relations (Consolidation) Act 1992;
(c) performing public duties under section 50 of the Employment Rights Act 1996;
(d) undertaking jury service;
(e) a safety representative under the Safety Representatives and Safety Committees Regulations 1977;
(f) a representative of employee safety under the Health and Safety (Consultation with Employees) Regulations 1996;
(g) an employee representative for the purposes of Chapter 2 of Part 4 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;
(h) taking time off for ante-natal care under section 55 of the Employment Rights Act 1996;
(i) undertaking duties as a member of the reserve forces as defined in section 1(2) of the Reserve Forces Act 1996;
(j) suspended from working at a school; or
(k) appointed as a learning representative of a trade union, in order for that person to analyse training requirements or to provide or promote training opportunities, and to carry out consultative or preparatory work in connection with such functions.
44 Expenditure on making payments to, or in providing a temporary replacement for, a person who is seconded on a full-time basis for three months or more other than to a local authority or the governing body of a school.
45 Expenditure on making payments to, or in providing a temporary replacement for, persons who have been continuously absent from work because of illness for 21 days or more.
46 Expenditure on insurance in respect of liability arising in connection with schools and school premises.
47 Expenditure on a risk protection arrangement.
48 Expenditure on services to schools provided by museums and galleries.
49 Expenditure on library services.
50 Expenditure on licence fees or subscriptions paid on behalf of schools.
51 Expenditure on the schools specific contingency.
52 Expenditure for the purposes of—
(a) improving the performance of under-performing pupils from minority ethnic groups; or
(b) meeting the specific needs of bilingual pupils.
Part 7 Items that may be removed from maintained schools’ budget shares – primary, secondary and special schools and pupil referral units
53 Expenditure incurred for the purposes of supporting the improvement of standards in maintained schools including expenditure in relation to the local authority’s functions under Part 4 of the 2006 Act (schools causing concern: England).
54 Expenditure in relation to the local authority’s functions under section 510 of the 1996 Act (provision and administration of clothing grants) and under regulations made under section 518(2) of the 1996 Act.
55 Expenditure on the provision of tuition in music, or on other activities which provide opportunities for pupils to enhance their experience of music.
56 Expenditure incurred in enabling pupils to enhance their experience of the visual, creative and performing arts other than music.
57 Expenditure on outdoor education centres, but not including centres wholly or mainly for the provision of organised games, swimming or athletics.
58 Expenditure in relation to functions of the local authority under Part I of the Local Government Act 1999 (best value) and the provision of advice to assist governing bodies in procuring goods and services with a view to securing continuous improvement in the way the functions of those governing bodies are exercised, having regard to a combination of economy, efficiency and effectiveness.
59 Expenditure in relation to authorisation and monitoring of expenditure in respect of schools which do not have delegated budgets, and all related financial administration.
60 Expenditure in relation to the local authority’s monitoring of compliance with the requirements of its 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.
61 Expenditure in relation to internal audit and other tasks necessary for the discharge of the local authority’s chief finance officer’s responsibilities under section 151 of the Local Government Act 1972 in so far as the responsibilities relate to maintained schools.
62 Expenditure in relation to the local authority’s functions under regulations made under section 44 of the 2002 Act, in so far as the functions relate to maintained schools.
63 Expenditure in relation to investigations which the local authority carries out of employees, or potential employees, of the local authority, or of governing bodies of schools, or of persons otherwise engaged, or to be engaged, with or without remuneration to work at or for schools.
64 Expenditure in relation to 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 local authority in relation to the administration of teachers’ pensions.
65 Expenditure in relation to advice, in accordance with the local authority’s statutory functions, to governing bodies in relation to staff paid, or to be paid, to work under the direct management of the head teacher or governing body at a school, and advice in relation to the management of all such staff collectively at any individual school, including in particular advice with reference to alterations in remuneration, conditions of service and the collective composition and organisation of such staff.
66 Expenditure in relation to determination of conditions of service for non-teaching staff, and advice to schools on the grading of such staff.
67 Expenditure in relation to the local authority’s functions regarding the appointment or dismissal of employees in maintained schools.
68 Expenditure in relation to consultation and functions preparatory to consultation with persons employed at schools or their representatives.
69 Expenditure in relation to 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, in so far 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, giving them advice.
70 Expenditure in relation to provision of information to or at the request of the Crown and the provision of other information which the local authority is under a duty to make available, in so far as the information relates to maintained schools.
71 Expenditure in relation to the local authority’s functions pursuant to regulations made under section 12 of the 2002 Act (supervising authorities of companies formed by governing bodies).
72 Expenditure in relation to the local authority’s functions under the discrimination provisions of the Equality Act 2010 in so far 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, giving them advice.
73 Expenditure on establishing and maintaining those electronic computer systems, including data storage, which are intended primarily to maintain linkage between local authorities and schools which they maintain.
74 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 maintained school’s budget share, and the provision of information to governors.
75 Expenditure on education functions related to revenue budget preparation, preparation of information on income and expenditure relating to education for incorporation into the local authority’s annual statement of accounts, and the external audit of grant claims and returns relating to education, in so far as those functions relate to maintained schools.
76 Expenditure on monitoring National Curriculum assessment arrangements required by orders made under section 87(3) of the 2002 Act.
77 Expenditure on retrospective membership of pension schemes and retrospective elections made in respect of pensions where it would not be appropriate to expect the governing body of the school to meet the cost from the school’s budget share.
78 Expenditure on landlord responsibilities in relation to maintained schools, and in particular—
(a) expenditure in pursuance of duties performed under the School Premises (England) Regulations 2012; and
(b) expenditure in connection with duties under the Control of Asbestos Regulations 2012.
79 Expenditure in respect of the dismissal or premature retirement of, or for the purpose of securing the resignation of, or in respect of acts of discrimination against, any person except to the extent that these costs are chargeable to maintained schools’ budget shares or fall within paragraph 2(b) of this Schedule.
80 Expenditure on examining attendance registers under the School Attendance (Pupil Registration) (England) Regulations 2024.
Part 8 Deficit from previous funding period
81 Expenditure in relation to any deficit in respect of the local authority’s schools budget from a previous funding period.
Regulation 28
1 (1) In this Schedule—
(a) references to the number of pupils—
(i) for the purposes of the previous funding period, exclude those funded by a sixth form grant; and
(ii) for the purposes of the funding period, exclude those funded by a sixth form grant;
(b) the “relevant number” of pupils for the previous funding period is the number of pupils at the school on 5th October 2023;
(c) the “relevant number” of pupils for the funding period is the number of pupils at the school on 3rd October 2024;
(d) the “minimum funding number” means a number determined by the local authority, between and including 0.995 and 1.000;
(e) the redetermined adjusted budget share for the previous funding period means a number calculated by the local authority, which must—
(i) exclude—
(aa) any amount allocated under regulation 14(2) (places reserved for children with special educational needs) of the 2024 Regulations;
(bb) any amount included under regulation 28 (sixth form funding) of the 2024 Regulations;
(cc) any amount included under regulation 40 (correction of errors and changes in non-domestic rates) of the 2024 Regulations;
(dd) the difference between (a) any amount allocated to the school under regulation 29(4) or (8) (new schools, merged schools and closing schools) of the 2024 Regulations, and (b) the single sum which the school would have received under regulation 16 (lump sums for primary and secondary schools) of the 2024 Regulations, had regulation 29(4) or (8) of the 2024 Regulations not applied;
(ee) any amount allocated to the school under regulation 24 (additional criteria etc which may be taken into account) of the 2024 Regulations where such amount has been deducted from the schools budget under Part 5 (children and young people with high needs) of Schedule 2;
(ff) any amount allocated to the school under regulation 10(3) (early years single funding formula) of the 2024 Regulations;
(gg) any amount included in respect of regulation 24(3)(a) (non-domestic rates) of the 2024 Regulations;
(hh) any amount allocated to the school under regulation 16(2) (primary lump sum) or, where regulation 30(4) or (8) applies, the amount allocated to the school under that regulation;
(ii) any amount allocated to the school under regulation 16(3) (secondary lump sum) or, where regulation 30(4) or (8) (applies, the amount allocated to the school under that regulation;
(jj) any amount allocated to the school under regulation 21(2) (primary population sparsity);
(kk) any amount allocated to the school under regulation 21(7) (secondary population sparsity);
(ll) any amount added to the school’s budget share under regulation 39 (pupils permanently excluded from, or leaving, maintained schools) of the 2024 Regulations;
(mm) any amount allocated to the school under regulation 23 (split sites factor) of the 2024 Regulations; and
(nn) any amount allocated to the school under regulation 24(3)(b) (private finance initiatives) of the 2024 Regulations.
(ii) include—
(aa) any amount deducted from the school’s budget share under regulation 11(5) or (6) (determination of allocation of budget shares etc. for the funding period), 22(2) (risk protection arrangement) or 39 (pupils permanently excluded from, or leaving, maintained schools) of the 2024 Regulations; and
(bb) any amount representing the allocation to the school in the previous funding period in respect of the teachers’ pay additional grant, the teachers’ pension employer contribution grant and the core schools budget grant as shown on the authority proforma tool for 2025–26 sent to the local authority by the Department for Education in December 2024;
(f) references to a redetermined adjusted budget share for the funding period include the effect of any alternative arrangements approved by the Secretary of State under regulation 42, but the local authority must—
(i) exclude—
(aa) any amount allocated under regulation 14(2) (places);
(bb) any amount included under regulation 29 (sixth form funding);
(cc) any amount included under regulation 41 (correction of errors and changes in non-domestic rates);
(dd) any amounts allocated under regulation 10(1) (formula for determining budget shares) which would have been within a class or description of the expenditure listed in Schedule 2 to the 2024 Regulations that the local authority deducted in the previous funding period;
(ee) any amount allocated to the school under regulation 10(3) (early years single funding formula);
(ff) any amount included in respect of regulation 25(3)(a) (non-domestic rates);
(gg) any amount included in respect of regulation 25(3)(b) (private finance initiatives);
(hh) any amount allocated to the school under regulation 16(2) (primary lump sum) (or, where regulation 30(4) or (8) applies, the amount allocated to the school under that regulation);
(ii) any amount allocated to the school under regulation 16(3) (secondary lump sum) (or, where regulation 30(4) or (8) applies, the amount allocated to the school under that regulation);
(jj) any amount allocated to the school under regulation 21(2);
(kk) any amount allocated to the school under regulation 21(7);
(ll) any amount added to the school’s budget share under regulation 40 (pupils permanently excluded from, or leaving, maintained schools); and
(mm) any amount allocated under regulation 24.
(ii) include any amount that is deducted from a school’s budget share under regulation 11(5) or (6) (applications to a schools forum or to the Secretary of State for authorisation to redetermine budgets), 22(2) (risk protection arrangement), 23(2) (energy scheme factor), 40 or 41.
(2) For the purposes of this Schedule—
(a) where a school opened during the previous funding period, its redetermined adjusted budget share for the previous funding period is the amount it would have been if the school had opened on 1st April 2024; and
(b) where a school opens during the funding period, its redetermined adjusted budget share for the funding period is the amount it would have been if the school had opened on 1st April 2025,
in both cases adjusted in accordance with paragraph 1(e) or (f), whichever is applicable.
2 Where (A/B) is less than (C/D) then the guaranteed funding level is (C/D) x B where—
A is the redetermined adjusted budget share, calculated by the local authority, for the funding period;
B is the relevant number of pupils in the funding period;
C is the redetermined adjusted budget share for the previous funding period multiplied by the minimum funding number; and
D is the relevant number of pupils in the previous funding period.
3 Where a new school opens during the funding period and is a replacement for two or more schools being discontinued during the funding period, its guaranteed funding level must be calculated in accordance with paragraph 2, subject to paragraph 4.
4 In calculating the guaranteed level of funding under paragraph 3 the relevant number of pupils in the previous funding period under paragraph 1(1)(b) is the sum of the relevant number of pupils in the discontinued schools on 5th October 2023.
5 In calculating the redetermined adjusted budget share for the previous funding period, the local authority may exclude any amounts allocated pursuant to regulation 42(1)(d) (exceptional premises costs) if it also excludes the amount from the redetermined adjusted budget share calculated for the funding period.
Regulation 43
1 The carrying forward from one funding period to another of surpluses and deficits arising in relation to schools’ budget shares.
2 Amounts which may be charged against schools’ budget shares.
3 Amounts received by schools which may be retained by their governing bodies and the purposes for which such amounts may be used.
4 The imposition, by or under the scheme, of conditions which schools must comply with in relation to the management of their delegated budgets, and of sums made available to governing bodies by the local authority which do not form part of delegated budgets, including conditions prescribing financial controls and procedures.
5 Terms on which the local authority provides services and facilities for schools maintained by it.
6 The payment of interest by or to the local authority.
7 The times at which amounts equal in total to the school’s budget share are to be made available to governing bodies and the proportion of the budget share to be made available at each such time.
8 The virement between budget heads within the delegated budget.
9 Circumstances in which a local authority may delegate to the governing body the power to spend any part of the local authority’s non-schools education budget or schools budget in addition to those in section 49(4)(a) to (c) of the 1998 Act.
10 The use of delegated budgets and of sums made available to a governing body by the local authority which do not form part of delegated budgets.
11 Borrowing by governing bodies.
12 The banking arrangements that may be made by governing bodies.
13 A statement as to the personal liability of governors in respect of schools’ budget shares having regard to section 50(7) of the 1998 Act.
14 A statement as to the allowances payable to governors of a school which does not have a delegated budget in accordance with the scheme made by the local authority for the purposes of section 519 of the 1996 Act.
15 The keeping of a register of any business interests of the governors and the head teacher.
16 The provision of information by and to the governing body.
17 The maintenance of inventories of assets.
18 Plans of a governing body’s expenditure.
19 A statement as to the taxation of sums paid or received by a governing body.
20 Insurance.
21 The use of delegated budgets by governing bodies to satisfy the local authority’s duties imposed by or under the Health and Safety at Work etc. Act 1974.
22 The provision of legal advice to a governing body.
23 Funding for child protection issues.
24 How complaints by persons working at a school or by school governors about financial management or financial propriety at the school will be dealt with and to whom such complaints should be made.
25 Expenditure incurred by a governing body in the exercise of the power conferred by section 27 of the 2002 Act.