Purpose

Cabinet is recommended to
approve the draft 2025/26 Local Funding Form ula (LFF) for 5- to
16-year-olds which is used to allocate the Schools Block of the
Dedicated Schools Grant (DSG) to schools and academies in Waltham
Forest.
 
 

Content

Cabinet approved:

(1)         
the draft Schools Block Local Funding Formula for
2025/26 for 5- to 16-year-olds at Appendix A of the
report;

(2)         
using the maximum Minimum Funding Guarantee
permitted (+0.0%);

(3)         
that, if after running the formula, there are
unallocated funds or over allocation of funds, that such amounts
are adjusted through adjusting the rates for Basic Entitlement
(AWPU) subject to those permitted by the Department for Education;
and

(4)         
that, if the rates for Basic Entitlement (AWPU)
reach the maximum permitted, any further funds will be applied to
the Growth Fund.

 

Options & Alternatives Considered

The ESFA requires local
authorities to bring their own formulae closer to the schools NFF
and, relevant to Waltham Forest is, that local authorities are not
allowed to ‘overshoot’ the NFF value of a formula
factor by more than 2.5%, setting a limit on the use of any
unallocated funds to increase Basic Entitlement (AWPU).

Waltham Forest started using the NFF factor rates in
2020/21, taking advantage of the raising of the Minimum Funding
Guarantee (MFG) that year to share the increase in funding and
protect schools from any redistribution flowing from the adoption
of NFF factor rates.

The MFG protects schools’ per-pupil funding
and since 2020/21 Schools Forum has agreed to maximise the use of
the positive MFG.