DFEE Normal Template

1. This Circular sets out the arrangements for Standards Fund grant support to LEAs in England for financial year 2002-2003. Part A deals with general aspects of the Standards Fund programme. Part B describes each category and activity and sets out the proposed requirements for the payment of grant.

2. Allocations for a number of grants are included in Annex C to this Circular. The remaining allocations will follow on the timetable indicated at Annex B. LEAs are asked to confirm take-up of Standards Fund allocations by 8 February 2002 (if necessary, subject to formal approval). LEAs will be asked to notify schools of their Standards Fund allocations by the end of February 2002, along with their other budgets.

3. The Education Act 1996, as amended by the School Standards and Framework Act 1998, allows the Secretary of State to make regulations governing eligible expenditure under the Standards Fund. Subject to Parliamentary approval, the Education Standards Fund (England) Regulations 2001 will be amended or replaced to make provision for the payment of grants described in this Circular in FY 2002-2003. Such Regulations will be posted on the website once they have been made, and LEAs alerted by email. Outstanding grant in respect of provision made in FY 2001‑2002 will continue to be made under the 2001 Regulations.

4. The total Standards Fund (DfES grant plus LEA contributions) in 2002-2003 will be some £3.6 billion, as compared with £3.1billion in the current year. LEA contributions will be around £880 million.

5. The Standards Fund will remain the Government’s main channel for targeting funds towards national priorities to be delivered by LEAs and schools. It will therefore continue to provide funding for major initiatives such as the literacy and numeracy strategies, Excellence in Cities (EiC), the National Grid for Learning (NGfL), capital support for schools, and other programmes.

6. There will be no significant changes to the operation of the Standards Fund programme in 2002-2003, to allow for consolidation of the important improvements made in 2001-2002. Further, from 2003-2004 we will be introducing a new LEA funding system, which will impact on the Standards Fund.

7. The following grants will cease to be part of the Standards Fund programme from 2002‑2003 either because they have come to the end of their funding period, or their funding will be managed by other bodies.

The Secretary of State announced on 8 May funding of £20m for developing quality youth work (Press Notice 2001/0258 at www.dfes.gov.uk/pns). Decisions on the most effective way of managing that funding will be taken in light of recent consultations. The Standards Fund may be used where it is considered to be the most appropriate funding mechanism.

Adult Ethnic Minority Achievement Grant; and Family Literacy and Numeracy Grant

Funding for both these grants will be managed by the Learning and Skills Council from April 2002. Please contact Ian McVicar, ian.mcvicar@dfes.gsi.gov.uk, for further details.

Funding for these activities is now included as part of Grant 101b: School Improvement: All Schools and EDP Priorities.

Funding for both these grants will be managed by the National College for School Leadership from April 2002. Please contact Rachel Woodall (NPQH and LPSH) at rachel.woodall@ncsl.org.uk, tel: 0115 8467156. Or you can access further details on the College website at www.ncsl.org.uk

For NPQH all the funding for Intake One candidates on the new model was allocated in 2001-2002. Therefore LEAs will already have received their full allocation. For the LPSH the cost of the follow-up day (Day Five) is included in the initial funding for the four-day LPSH workshops. Therefore LEAs will have already received funding to cover the follow‑up day for workshops held between April 2001 and March 2002 (which are likely to fall post March 2002).

From 2002-2003 there will no separate specific grant for school security. Schools and LEAs will have the freedom, and are encouraged, to spend the funding made available through New Deal for Schools (NDS) capital funding, schools’ devolved formula capital and other capital funding programmes on security purposes.

· inform schools of their Standards Fund allocations at least four weeks, and preferably six weeks, before 1 April 2002;

· pay allocations to schools promptly on a regular schedule without requiring submission of claims or invoices;

· reduce financial administration and returns to the absolute minimum, by using DfES reports without any local elaboration. Schools should not be subject to any audit or accountancy requirements beyond what is appropriate for their delegated budget; the Department will be reviewing the operation of the reports in the light of the 2001-2002 process;

· encourage schools to focus instead on the intended outcomes, through light-touch monitoring integrated into schools’ and LEAs’ strategies for raising pupil achievement and other key priorities. LEAs should not separately evaluate schools’ use of Standards Fund money, since this will be evaluated centrally in a joint programme with LEAs and schools. The Department will monitor and if necessary intervene to prevent new bureaucratic burdens building up.

The range of allocations continues to reflect the Government’s central priority of developing and improving schools in order to raise standards. The major focus is on higher pupil performance through targets agreed with LEAs through Education Development Plans. The role of LEAs will be to support their schools, to press those that are under-performing to do better, and to take responsibility for action which is likely to be best delivered at LEA level.

9. The Secretary of State intends to make allocations in six broad categories as follows:

Purpose: to enable schools to raise their levels of achievement; and to enable LEAs to provide schools, especially those causing concern, with support and challenge.

Purpose: to remove barriers to progress, address special educational needs and promote social inclusion. In particular, to reduce exclusion, raise attendance, provide full-time education for children out of school and address key social needs.

Purpose: to raise performance, achieve excellence and transform school education through a targeted programme of support. The core programme, Excellence in Cities, is designed to remedy successive failures to address the educational problems of the major cities. The specialist and beacon schools programmes support a specialist curriculum, or collaborative partnerships that will contribute to closing the gap between the best performing schools and others by identifying and disseminating successful practice.

To develop the skills and enhance the status of all teachers and headteachers, to support the modernisation of the teaching profession and further develop the role of teaching assistants.

Purpose: to help raise educational standards through effective investment in school buildings and infrastructure, including the capacity to use Information Communications Technology (ICT).

10. Within all of these categories, schools will wish to give high priority to expenditure on the professional development of teachers and other staff, which the Secretary of State regards as critical to school improvement. The flexibility available within the Standards Fund should enable schools to meet the key priorities for professional development. Schools should also give priority to the training of school governors, particularly induction for new governors.

11. In 2002-2003 the Secretary of State intends to pay allocations to LEAs either at 100% or at a composite grant rate of 52%. The overall LEA contribution remains around a quarter of the total programme. The grant rate makes no difference to schools, since schools will be free to spend the full cash value of any allocation received, and (subject to any restrictions under “Virement of allocations” below) to move it between priorities.

12. An LEA’s contribution to the Standards Fund should not come from other specific Government grants (including the European Social Fund). Schools may agree to a top-slicing of the Local Schools Budget in order for the LEA to meet all its matched funding requirements. This is the simplest way of allowing schools to contribute to matched funding. However, if schools cannot agree to this, then inviting schools to contribute voluntarily on an individual basis is permissible in principle. However, we would be concerned about the complexity of such an arrangement, particularly if it was applied across the broad range of Standard Fund grants. LEAs cannot require individual schools to give up amounts from the budget shares allocated to them. Schools which decline to contribute must receive the shares of the LEA’s Standards Fund allocations to which they would otherwise be entitled, with the LEA providing the matched funding from central funds.

13. Allocations to LEAs will normally be formula-based, for example according to numbers of schools or pupils. The pupil numbers used for this purpose will be as at January 2001. Final allocations will depend on whether all LEAs take up the sums allocated to them. The formulae used for allocation to LEAs, and guidance on how LEAs should devolve allocations to schools, are set out in Part B. Unless otherwise stated, for allocations purposes the term schools includes nursery schools, special school and Pupil Referral Units as well as mainstream schools.

14. At LEA level most allocations will continue to be ring-fenced in the sense that LEAs will be expected either to spend the money themselves for the specified purpose, or to devolve it to schools under the same heading. Where an allocation is specified in Part B as being limited to a particular purpose, this requirement will be satisfied by a statement by a responsible officer that this condition has been met within reasonable tolerances (to within 5% or £10,000 whichever is less). Virement within these tolerances is therefore permitted. As in 2001-2002 there will be no separate audit certification of Standards Fund expenditure, or any other accounting requirement beyond what would apply to an LEA’s other public funding.

15. At school level schools will continue to be able to vire money freely between allocations (including allocations in different categories) at any time. The aim is to ensure schools have the flexibility to use the money to meet their own priorities within the framework set out in this Circular. The exceptions are:

(a) LEAs may restrict the freedom of a school under special measures, or which is causing financial concern, to vire money from the pattern in which it has been allocated.

(b) LEAs must make it a condition of grant to schools that they will spend at least the amount of each allocation on its defined purposes for the following grants:

(c) Grant 401: Excellence in Cities: In taking up this grant, EiC partnerships – the LEAs and schools that make them up – are effectively entering into a contractual relationship with the DfES, as set out in the agreed action plan. Partnerships and their members will have to ensure that they implement the various elements agreed in the plan. Since the funds provided will closely match the costs of implementing the plan, in practice schools will find that opportunities for virement beyond the margin are limited. But there will be no requirement on schools to account for EiC grant separately: what is important is that the EiC action plan is fully implemented.

(d) Grants 503, 403 and 404: Training Schools, Specialist Schools and Beacon Schools: in being designated as Training, Specialist or Beacon, schools are committing themselves to certain activities and outcomes. As with Excellence in Cities in (c) above, schools will be allowed to vire these grants subject to implementing those activities and outcomes.

16. Grant will continue to be paid in regular scheduled streams in June 2002, September 2002, December 2002 and March 2003.

17. Devolution means that it is for schools to determine how to spend their allocation. Where funds are allocated to schools with no discretion, then that is not devolution. For example, School Achievement Awards are devolved to schools because the school determines who receives a bonus. Golden Hellos are not devolved because the school must pay the incentive to the particular teacher concerned. Part B sets out the level of, and method for, devolution of grant to schools where specified. Devolution should not discriminate against particular types of school. The Secretary of State looks to LEAs to involve all its schools closely in the development and implementation of all school-related grants, and to devolve grant above the required level wherever possible.

18. Schools have freedom to spend their 2002-2003 allocations over 17 months (to 31 August 2003). If schools have not spent their full allocation by that date, LEAs should recover the underspend to use on any Standards Fund purpose. Underspends by schools relating to Grant 604: Devolved Capital, Grant 605: Seed Challenge Capital; 609b: Fresh Start Capital; or Grant 611: NDS Condition Funding need not be recovered.

19. We would expect LEAs to have spent all their allocations by 31 August, other than the recovered underspends referred to in paragraph 18 above. The Department will not be recovering unspent funds via an outturn claim form. Any significant underspends identified on an LEA’s outturn monitoring form, in particular for non-virable grants, may have an impact on the level of the following year’s allocations.

20. Eligible expenditure includes any expenditure by an LEA, or devolved expenditure incurred by schools, which meets one or more of the purposes set out in Part B, and is a proper use of public funds.

21. The Secretary of State intends that schools should submit simple reports of their spending to their LEA, which will summarise the data for the DfES. It is essential that this process should be easily manageable. The Department has developed software to enable LEAs and schools to complete this information. The Department will be reviewing the use of this software during the autumn to see how these arrangements can be improved for 2002‑2003. We will aim to ensure that monitoring requirements are no greater than those required for 2001‑2002 and take account of the new arrangements for Consistent Financial Reporting for schools.

22. As in previous years, cross-LEA consortia will be encouraged, especially for National Grid for Learning programmes, support for Traveller children, music services and any other purposes where economies of scale or operation are likely to result. Where consortium arrangments are in place LEAs should advise DfES whether grant is to be paid to one lead LEA or to each consortium member separately.

23. As in 2001-2002, LEAs will continue to have flexibility to spend within a single teachers ring-fence, on condition that the specified demand-led needs are met whenever they arise. The grants included within the ring-fence are: Grant 501: NQT Induction, Grant 502: Teacher Recruitment Incentives (“Golden Hellos”), and Grant 504: Advanced Skills Teachers. LEAs will be funded for these needs by a combination of formula and unit funding, and will benefit from the flexibility available within a larger budget. Details of the ring-fence are given at Annex A.

24. Under the terms of the School Teachers Pay and Conditions Document 2000, governing bodies or LEAs can make additional payments to teachers (other than headteachers or advanced skills teachers) for in-service training undertaken voluntarily at weekends and in school holidays.

25. We do not envisage any separate monitoring of performance specifically related to the Standards Fund. The objective is that LEAs should monitor progress relative to key targets set out in their Education Development Plan and any other plan agreed with the Department; that schools should similarly measure progress relative to targets and priorities in their School Development Plan, and any agreement with the Department (such as a specialist school agreement); and that both schools and LEAs should take account of the priorities set out in any current OFSTED post-inspection Action Plan. Where there are specific performance measures to which schools or LEAs should have regard in relation to individual categories or allocations, these are stated in Part B. In some cases, additional guidance will be published later on the Standards Fund website.

26. The Department will continue to develop an evaluation strategy: developing structured sampling techniques, to enable practice in a specific category or allocation to be analysed in depth on the basis of a small sample rather than universal enquiry. As indicated in paragraph 18 above we will be reviewing the arrangements for reporting planning and outturn.

27. The Department will continue to notify LEA of significant developments via e-mail to each LEA’s named Standards Fund contact and through the Department’s website.

28. General enquiries about the Standards Fund should be addressed by email to the enquiry helpline enquiries.standardsfund@dfes.gsi.gov.uk, or to: Graeme Roberts on 020-7925-6086. Enquiries about individual allocations should be addressed to the contact officer named in the table at Annex B.

Part B: Individual Categories

1: School Improvement

1. To enable schools to raise their levels of achievement; and to enable LEAs to provide schools with support and challenge, especially those causing concern

· support schools to meet the statutory and other targets set out in their school development plan;

· support the revised National Curriculum, including the PSHE framework and the introduction of statutory Citizenship at Key Stages 3 and 4;

· enable LEAs to achieve the targets set out in their Education Development Plan;

3. LEAs should measure their contribution to these objectives by reference to progress towards the outcome targets and priorities in their Education Development Plan, other plans agreed with the DfES, and any current post-inspection action plan. Schools should measure their progress relative to outcome targets and priorities in their school development plan reflecting their LEA’s EDP, and any current post-inspection action plan.

· the number of secondary schools in each LEA facing challenging circumstances, ie with low attainment, high FSM, or in special measures^[1] ;

· the number of primary schools, special schools and PRUs in special measures in each LEA;

· to schools involved in specific initiatives to test reforms which will raise standards in schools with the lowest levels of attainment, eg the pilot project with schools in extremely challenging circumstances and the Trainee Heads scheme.

All funding should be devolved to schools. Funding to support schools in special measures should be allocated to schools currently in special measures or causing concern according to the needs identified in the post-inspection plan or school development plan. Funding for secondary schools facing challenging circumstances should be allocated to the named schools to support their raising attainment plans.

We will contact LEAs with the names of schools facing challenging circumstances identified for funding after the publication of the performance tables. Where schools are due to close within year, the funding should follow the pupils.

101 B: General school improvement and EDP priorities

5. About 82% of the total. Will be allocated to LEAs by a formula giving equal weight to the number of schools and the number of full time equivalent pupils in the LEA.

To support LEAs’ EDP priorities and individual schools’ improvement priorities. We expect at least 85% of this total to be devolved to schools. LEAs should agree with their schools a reasonable formula for devolving this funding which does not discriminate against schools which receive funding under part A. In devolving these funds to schools, LEAs should have regard to the introduction of citizenship as a National Curriculum subject at Key Stage 3 and 4 from September 2002.

6. Expenditure by LEAs must be on activities directly related to the purposes and objectives set out above. In addition, allocations under this heading may be used to meet LEA costs in ensuring suitable parent governor representation on Education Committees, and in supporting those representatives.

7. Basic information about planned and outturn expenditure in this category will be collected within the composite Standards Fund return.

1. To remove barriers to progress, address special educational needs and promote social inclusion. In particular, to narrow inequalities in achievement between advantaged and disadvantaged pupils, including those with special educational needs, to reduce exclusion, raise attendance, provide full-time education for children out of school, and address key social needs.

· enable LEAs and schools to meet their unauthorised absence targets; and to contribute towards achieving the national target to cut unauthorised absence by 10% between 2002 and 2004;

· achieve LEA targets for reducing exclusions, including drug-related exclusions, national target: one-third reduction by 2002 compared to 1996-97;

· improve pupil behaviour, provide quality full-time education for those pupils who are excluded and reduce absence;

· ensure the provision of full-time and appropriate education to all pupils of compulsory school age excluded from school for more than 15 days by September 2002 and thereafter;

· achieve new national targets for the proportion of schools having drug education policies consistent with DfES guidance and Drug Action Team prevention plans (100% secondary schools and 80% primary schools with such policies by 2003);

· support of school drug, alcohol and tobacco advisers and/or to address gaps in the quality and coverage of drug, alcohol and tobacco education;

· provide specific support for the education of children in public care and increase the proportion of care leavers who attain 5 GCSEs at Grades A*-C (to 15% by 2004);

· support SEN training and professional development for teachers and other staff;

· help develop home/school assistance in strategies to support the needs of pupils with SEN or disabilities;

· develop and support inclusive education systems, by enabling more SEN (including EBD) placements in mainstream settings, and supporting special schools’ outreach provision;

· improve therapy provision for children, in conjunction with the National Health Service and the voluntary sector;

· develop early intervention structures, including support for children following Universal Newborn Hearing Screening (UNHS);

· support equality of access to education for pregnant girls and mothers of school age, reintegrating them into education and helping them overcome barriers to learning;

· improve education for children unable to attend school because of illness or injury;

· support the employment of child protection coordinators to support work on behalf of groups of authorities.

3. LEAs should measure their contribution to these objectives by reference to progress towards the outcome targets and priorities in their Education Development Plan, other plans agreed with the DfES, and any current post-inspection action plan. Schools should measure their progress relative to outcome targets and priorities in their School Development Plan and their LEA’s EDP, and any current post-inspection action plan.

4. This section lists the formulae which DfES intends to use to calculate allocations to LEAs. It also states any conditions as to how LEAs should allocate money to schools.

5. This will be allocated to LEAs by a formula based on pupil numbers weighted by free school meal entitlement. LEAs are to devolve at least 77% of the total to schools as Pupil Retention Grant (PRG). No LEA should receive an increase or decrease in their allocation of SIPS funding greater than 5% of the 2001-2002 allocation; however LEAs and schools may vary the existing distribution formula if schools agree. In addition to their PRG entitlement, schools should also receive the cash value of any allocation in 2000-2001 under paragraph B19.7 of Circular 16/99, this funding is to be extended for one further year , however 2002‑2003 will be the final year. Schools and LEAs involved will need to consider where funding will come from in future years.

6. LEAs and schools are able to agree local procedures for using Pupil Retention Grant (PRG - the element of the SIPS funding devolved to schools) to support the education of pupils once they have been permanently excluded. Such agreements must not jeopardise LEAs’ ability to provide full-time education for excluded pupils from September 2002. If local agreement cannot be reached a school’s allocation of PRG must be reduced by between £3,000 and £6,000 per annum for each pupil excluded permanently after 1 April 2002. LEAs may pro rata this reduction to take account of the point in the year when the exclusion was made. This money is to be used by the LEA to support education outside school or to support a re-integration package at a new school.

7. LEAs should continue to operate a Truancy Trigger. However, where it is activated, a school's PRG should not be reduced but instead earmarked to fund expert advice on reducing truancy and consequent measures. Particular emphasis should be placed on reducing truancy.

8. This will be allocated to LEAs by a formula based (70%) on maintained schools pupil numbers, weighted (30%) by free school meal entitlement. LEAs may wish to retain at least 50% of expenditure to enable them to retain a strategic lead on the inclusion of pupils with SEN in mainstream schools, to support multi-agency working and to continue existing successful speech and language therapy projects. LEAs may also encourage schools to pool some of the devolved balance of funding to enable other projects to start or continue.

9. This grant will be allocated to LEAs by a formula, based 70% on pupil numbers and 30% by free school meal entitlement. This grant does not have to be devolved to schools.

10. This grant will be allocated to all LEAs with above average rates of teenage conception and all those who received funding in 2001-2002 by a formula based on secondary pupil numbers weighted by teenage conception rates. This grant does not have to be devolved to schools.

11. This will be allocated to LEAs by a formula based on numbers of young people aged 5‑19. Schools Drugs Advisers will be allocated by a formula comprising a flat rate with the remainder based on the number of maintained schools. This grant does not have to be devolved to schools.

12. This will be allocated to LEAs by a formula based on pupil numbers at Key Stages 2, 3 and 4. Up to 15% may be retained; the balance must be devolved to schools.

13. Excellence in Cities LEAs and with Excellence Clusters will receive an additional allocation at a 100% grant rate. The LEAs are able to retain up to 30% of that additional allocation. EiC LEAs should, however, still maintain the focus of this money on particularly disadvantaged schools and those schools with poor records of study support provision.

14. Grant is allocated the to lead authority who employs the coordinator on behalf of a group of authorities. The grant does not have to be devolved to schools.

15. Expenditure by LEAs must be on activities directly related to the purposes and objectives set out above. For grants continuing from 2001-2002 can continue to be spent on similar activities. Examples of relevant activities will be made available on the website.

16. Basic information about planned and outturn expenditure in this category will be collected within the composite Standards Fund return.

· sustained implementation of the National Literacy and Numeracy Strategies in primary schools;

· raising standards at Key Stage 3 through a national programme across the curriculum;

· support education and health partnerships to develop and maintain healthy schools programmes to meet the National Healthy School Standard;

· raising achievement of pupils from ethnic minority groups and Traveller families;

· achieving a 1:15 adult:pupil ratio in reception classes in areas of greatest social deprivation;

3. Achievement of school and LEA literacy and numeracy targets and the national targets of 80% for literacy and 75% for numeracy at level 4+ for 2002 and proposed targets for 2004 of 85% at level 4+ and 35% at level 5+.

Achievement of school and LEA GCSE targets and the national targets for 2002 and 2004.

Progress towards school and LEA Key Stage 3 targets for 2003 and 2004, set in English, mathematics, science, and ICT.

4. LEAs should measure their contribution to these objectives relative to the outcome targets and priorities in their Education Development Plan, Early Years Childcare and Development Plan, Education Health Partnerships plan, other plans agreed with the DfES, and any current post‑inspection action plan. Schools should measure their progress relative to outcome targets and priorities in their School Development Plan and their LEA’s EDP, and any current post-inspection action plan. Schools and LEAs should measure progress in Key Stage 2 National Curriculum tests towards 2004 targets in the light of 2002 outcomes, and in the case of KS3 progress towards the 2004 milestones.

5. This section lists the formulae which DfES intends to use to calculate allocations to LEAs. It also states any conditions as to how LEAs should allocate money to schools.

(i) an element allocated to LEAs by a formula based on £42,500 per literacy consultant and taking account of the number of schools and pupils in the LEA. Funding for training and venue costs for the Further Literacy Support (FLS) programme will be based on the number of schools that an LEA has with Year 5 pupils. This element is not intended to be devolved to schools;

(ii) an element allocated to LEAs by a formula based 50% on the number of schools and pupils, and 50% on the distance to the LEA’s 2004 target. LEAs will also be allocated specific funding for schools to attend training on the FLS programme, based on the number of schools with Year 5 pupils. This element is to be allocated to schools for specific purposes;

(iii) an element allocated by a formula based 50% on the number of schools and pupils, and 50% on the distance to the LEA’s 2004 target. LEAs will also be allocated funding for FLS in-school supply cover and resources based on the number of schools with Year 5 pupils. This element must be devolved to schools.

(i) an element allocated to LEAs by a formula based on £42,500 per numeracy consultant and taking account of the number of schools and pupils in the LEA. An additional amount has also been allocated for NNS five day course training and venue costs based on the number of numeracy consultants. This element is not intended to be devolved to schools;

(ii) an element allocated to LEAs by a formula based 50% on the number of schools and pupils, and 50% on the distance to the LEA’s 2004 target.. LEAs will also be allocated supply cover funding for teachers to attend NNS five day courses based on the number of numeracy consultants. This element is to be allocated to schools for specific purposes;

(iii) an element allocated to LEAs by a formula based 50% on the number of schools and pupils, and 50% on the distance to the LEA’s 2004 target. Funding has also been allocated for schools to run NNS intervention programmes, based 50% on the number of schools and 50% on Key Stage 1 attainment data. This element must be devolved to schools.

Schools are free to adjust the balance between their devolved literacy and numeracy allocations to meet local objectives.

Part A: allocated at a flat rate to cover the costs of English, mathematics, science, ICT and Teaching and Learning in Foundation subjects (TLF) consultancies, central training, administrative, management and venue costs; this element is to be retained by LEAs;

Part B: allocated to LEAs by a formula based on the number of middle and secondary schools; this must be devolved to schools by a formula based equally on number of such schools.

Part C: Summer Schools: allocated to LEAs according to the number of secondary schools within each LEA. This grant should be devolved to each school running a summer school

9. The basis for allocating this grant will be notified to LEAs along with their allocations in November 2001. Of the total 15% or £150,000, whichever is greater, may be retained to provide central services. The balance must be devolved by a needs-based, fair and transparent distribution mechanism which may be varied at local discretion. The Department will consult interested parties in the autumn on options for moving to a needs‑based funding formula from 2003-2004.

10. This will be allocated to LEAs taking account of historical patterns. The allocation should not normally be devolved to schools.

11. This will be allocated to LEAs by a formula based 50% on the number of schools with Year 5 and 6 pupils and 50% on the number of pupils not achieving level 4+ in the 2001 Key Stage 2 tests. The grant should be fully devolved to schools.

12. This will be allocated by a flat rate per LEA plus the balance by number of maintained schools. The allocation should not normally be devolved to schools.

13. This will be allocated to LEAs by a formula based on the number of maintained secondary schools. This grant should be fully devolved to schools.

14. This grant will no longer require matched funding from LEAs. Each LEA will receive at least the same in DfES grant as in 2001-2002. The overall formula will move towards a distribution to greater reflect current need in each authority. The allocation should not normally be devolved to schools.

15. This will be allocated to LEAs on the basis of their eligibility for inclusion, ie those LEAs having relevant football clubs and successful in the 2000-2001 roll-out selection process excluding those LEAs with Playing for Success Innovation pilots. All eligible LEAs have been allocated the maximum £50,000 for running costs, but there is an important point to note in respect of allocations for capital costs. We are aware that some LEAs/clubs have spent up to the maximum and no allocation has therefore been made. For others, capital costs allocations for 2002-2003 have had to be based on the capital expenditure position as at 31 March 2001 informed by the claims made directly to Schools Plus Division for that Division's' one third contribution. Most Grant 311 allocations for capital spend will therefore be overstated and LEAs should deduct spend in 2001-2002 from their allocations and inform Lesley Bettney, (lesley.bettney@dfes.gov.uk) of their revised figures.

16. This will be allocated to LEAs on the basis of the number of providers delivering Government funded early years education in each LEA. LEAs should work with Early Years Development and Childcare Partnerships to agree expenditure for training and development programmes.

17. This will be allocated to LEAs on the basis of approved plans and proposals submitted by interested early years settings.

18. This will be allocated to LEAs by a formula based on rankings in the Government's Index of Local Deprivation. LEAs may hold back up to 1% of this grant to meet the costs associated with the recruitment of new assistants and their training. The remainder should be devolved to schools.

19. This will be allocated to LEAs by a formula based on pupil numbers in the award-winning schools, with a guaranteed minimum for schools with very high staffing ratios. Each school must be allocated the full value of its award. It is for each school’s governing body to decide which staff should receive bonuses.

20. Allocated to all LEAs currently supporting maintained nursery schools, based on the number of schools and pupils as follows:

LEAs should work with their Early Years and Childcare Partnerships to decide on the distribution of funding within their own areas.

21. Expenditure by LEAs must be on activities directly related to the purposes and objectives set out in paragraph 2 above. Examples of relevant activities will be made available on the website.

22. Allocations under Part (i) support the LEA’s central costs: the employment of literacy and numeracy consultants, and administrative, management and venue costs.

23. Part (ii) of the Literacy allocation must be allocated by LEAs to schools in order to:

· differentiate support for schools so that those in greatest need receive more intensive support;

· deliver training identified in the LEA’s literacy action plan in line with the National Literacy Strategy training priorities for 2002-2003, which will be notified separately to LEA strategy managers and consultants;

· build local capacity, particularly through literacy expert teachers and headteachers;

· maximise training opportunities for all teachers, with priority to those who have had little or no training;

· provide supply cover for teachers to attend training on the Further Literacy Support programme;

24. Part (ii) of the Numeracy allocation must be allocated by LEAs to schools to provide for:

· additional training identified in the LEA’s numeracy action plan in line with the national priorities for 2002-2003, which will be notified separately to LEA strategy managers and consultants;

· build local capacity, particularly through leading mathematics teachers who should receive 6 days of supply cover, including one days attendance at nationally organised training;

25. Part A: the consultancy, central training, administrative, management and venue costs of English, mathematics, science, ICT, and Teaching and Learning in Foundation subjects (TLF) this element is to be retained by LEAs;

Part B: to deliver training and support in schools for English, mathematics, science , ICT, Teaching and Learning in Foundation subjects (TLF), including support for literacy and numeracy summer schools.

26. This allocation must be spent, whether at LEA or school level, on activities directly related to the raising of standards for ethnic minority and EAL pupils. Subject to the de minimis guidelines, it may not be vired to other Standards Fund priorities at either LEA or school level.

27. This allocation must be spent at LEA level on services and activities related to the identification, placement, assessment, attendance and progress of Traveller children, together with systems for maintaining and passing on records to any other LEA.

28. This allocation must be fully devolved to schools to run literacy and numeracy booster classes for Year 5 and 6 pupils who, with further support, could achieve level 4 in their Key Stage 2 English and mathematics tests

29. To support the development and implementation of education and health partnership plans.

31. LEAs may spend allocations in any way which enhances the opportunities for pupils to access musical education of high quality.

32. This allocation must be spent by LEAs in accordance with their agreed business plans and in line with the separate guidance issued by the Department.

33. Intended to improve the knowledge, skills and qualifications of early years staff delivering Government-funded education to 3 and 4 year olds.

34. Supports the development of integrated services in line with Early Excellence Centre objectives and offered by schemes agreed under the Early Excellence Centre programme.

35. Intended to meet the recruitment and salary cost of new class room assistants in reception classes to reduce adult:pupil ratios to 1:15.

36. Schools must spend awards on pay bonuses for staff (including non-teaching staff).

37. Expenditure can include costs of to extending nursery school services, such as extended hours; collaborative arrangements with other providers and agencies; dissemination of good practice; and improving cost effectiveness.

· supply cover costs to release headteachers, literacy and numeracy co-ordinators and other teachers for training and release time to support colleagues;

39. Basic information about planned and outturn expenditure in this category will be collected within the composite Standards Fund return. LEAs will also be expected to provide the DfES with the following additional information:

· Literacy and Numeracy - Once LEAs have been informed of their provisional allocations in November, they should draft their literacy and numeracy action plan with their Regional Directors. These will largely cover Part B of their provisional allocations. Plans should be submitted to Regional Directors by 31 December 2001, for agreement by the end of January 2002. The format for plans will be notified separately to LEA strategy managers.

· School Achievement Awards - LEAs will be asked to confirm that schools have received their awards and have certified (via their Standards Fund outturn forms) their expenditure on staff bonuses. The SAA Scheme will be evaluated through sample surveys.

1. To raise performance, achieve excellence and transform school education through a targeted programme of support. The core programme, Excellence in Cities, is designed to remedy successive failures to address the educational problems of the major cities and through Excellence Clusters, smaller groups of schools in areas of deprivation. The specialist and beacon schools programmes support a specialist curriculum, or collaborative partnerships that will contribute to closing the gap between the best performing schools and others by identifying and disseminating successful practice.

· a programme of enhanced opportunities for gifted and talented pupils in every EiC school;

· a network of new school-based city learning centres to provide centres of ICT technology to enrich curricular opportunities and teaching in EIC schools;

· more specialist and beacon schools to support a specialist curriculum and/or to ensure that good practice is spread across partner schools;

· Small Education Action Zones to cater for particular issues affecting particular groups of schools;

· planning the integration of in-year admission of challenging pupils and minimising the disruption to existing pupils;

· provide additional learning opportunities in and outside normal school hours for pupils whose social circumstances are exceptionally challenging/

3. Achievement of partnership targets agreed with the Department, which build on targets in LEAs Education Development Plans (or in due course are subsumed within these) and upon Education Action Zone agreements where relevant. EiC agreements normally include accelerated achievement of existing targets, additional targets for attainment of gifted and talented children, and other targets to reflect local priorities.

4. LEAs should measure their contribution to these objectives by reference to progress towards the outcome targets and priorities in their Excellence in Cities agreement, linked to their Education Development Plan, and any current post-inspection action plan. Schools should measure their progress relative to outcome targets and priorities in their EiC, specialist or beacon school agreements, linked to their School Development Plan, and any current post‑inspection action plan.

5. Excellence in Cities and Excellence Clusters areas are determined primarily by reference to free school meal factors. Allocations are by a formula based on numbers of pupils aged 11‑16 in state maintained secondary schools.

6. Funding is allocated to LEAs on the basis of pupil numbers in the relevant year groups. Pupil numbers in year 6 and pupil numbers in years 7-9 are given equal weighting, to reflect the Department's intention that about 50% of places should be for pupils completing year 6. This grant should be fully devolved to schools.

7. Allocations for Specialist Schools are based on the numbers of pupils. Additional allocations are made for specialist schools identified as Advanced Specialist Colleges, and separate allocations are made for schools identified as working towards specialist designation. Allocation for Beacon Schools are by agreement with individual schools in accordance with plans drawn up in association with the Department. Grant should be fully devolved to schools.

8. Allocated to all EiC areas based of the number of pupils eligible for Free School Meals. This grant should be fully devolved to schools.

9. Allocated to LEAs with schools in the pilot programme which started in September 2001. The pilot is running in 24 Phase 1 Excellence in Cities areas and six Excellence Clusters and is targeting 260 schools with a high proportion of disadvantaged pupils (schools with 35% or more free school meals, with those schools with 50% or more free school meals receiving an additional weighting). Grant should be fully devolved to schools.

10. £1.2 million capital funding per Centre is normally allocated for building and equipping a Centre. Once a Centre is open, £150,000 per year per Centre is normally allocated for capital redevelopment and revenue funding of £220,000 per year per Centre. City Learning Centre funding is not transferable to other areas of Excellence in Cities funding.

11. These grants only cover Excellence in Cities authorities. Details will be issued separately.

12. The Excellence in Cities (EiC) programme complements other Standards Fund programmes, and it is therefore a condition of funding that LEAs should take up all allocations in those programmes. Provision of funding must meet the identified aims of the programme and be consistent with the EiC plans approved by Ministers.

13. In taking up this grant, EiC partnerships – the LEAs and schools that make them up – are effectively entering into a contractual relationship with the DfES, set out in the agreed action plan. Partnerships and their members will have to ensure that they implement the various elements agreed in the plan. Since the funds provided will closely match the costs of implementing the plan, in practice schools will find that opportunities for virement beyond the margin are limited. But there will be no requirement on schools to account for EiC grant separately: what is important is that the EiC action plan is fully implemented

14. The specification for these summer schools will be reviewed in the light of the evaluations of this year's programme and any changes are expected to be published by the end of November.

15. Eligible expenditure for all Beacon schools may include supply cover for heads and other teacher release; provision of seminars, visits, conferences, work-shadowing, in-service training and documentation; outreach activities; teacher training; consultancy to schools; and responsibility allowances/bonus payments to staff outside the Leadership Group to undertake Beacon activities.'

16. A £3,000 allowance to a school accepting an eligible pupil. Details of eligibility and other arrangements for the allowances will be placed on the guidance section of the Standards Fund website shortly.

17. Extra support to provide additional learning opportunities in the classroom or outside normal school hours for pupils whose social circumstances are exceptionally challenging. Schools have flexibility in how they employ these extra resources, allowing them to try innovative approaches to encourage learning. The initiative is primarily aimed at Key Stage 3 pupils eligible for free school meals but schools can include other pupils with difficult social circumstances who they feel would benefit from this additional support. In total, 260 schools in 24 Phase 1 EiC areas and six Excellence Clusters will be involved in the pilot which will run until March 2003.

18. Excellence in Cities programmes are closely monitored and evaluated to inform the future development of the policy. Participating schools and LEAs are required as a condition of grant to provide management information of various kinds; details are notified separately.

1. To develop the skills and enhance the status of all teachers and headteachers, to support the modernisation of the teaching profession and further develop the role of teaching assistants.

· to enable selected Training Schools to develop and promote good practice in initial teacher training work;

· to support the appointment of a significant number of Advanced Skills Teachers;

· to support schools and LEAs in the introduction and operation of threshold assessment and performance management;

· to increase the numbers of teaching assistants working in nursery, primary, special and secondary schools;

· to improve the quality of classroom support which teaching assistants give to teachers;

· to support the costs of administrative and other help for small schools and to encourage innovative approaches including collaboration with other small schools to raise standards;

· to support schools to retain and recruit teachers in locations where there are the greatest difficulties;

· to support a pilot programme for teachers in their second and third years of teaching;

2. LEAs should measure their contribution to these objectives by reference to progress towards the outcome targets and priorities in their Education Development Plan, other relevant plans agreed with the DfES, and any current post-inspection action plan.

Schools should measure their progress relative to outcome targets and priorities in their School Development Plan and their LEA’s EDP, and any current post-inspection action plan.

3. This will be allocated to LEAs by a formula based on number of newly qualified teachers. The LEA will be required to devolve funds termly, at rates determined by DfES, to each school with one or more newly qualified teacher to whom statutory induction applies (ie gained QTS after 7 May 1999). In addition LEAs will be free (but not required) to fund schools at an enhanced rate in respect of NQTs who have exceeded the maximum permitted time as supply teachers. This grant is part of the Teachers Ring Fence (see Annex A for further details).

4. From 2002-2003 LEAs will be funded by a formula based on the number of teacher vacancies in shortage subjects shown in January 618G returns. LEAs and schools must pay Golden Hellos to all those teachers who meet the eligibility criteria in line with DfES guidance circulated to all local authorities. The latest version of the guidance can be viewed at www.dfee.gov.uk/go4itnow. This grant is part of the Teachers Ring Fence (see Annex A for further details).

5. This will be allocated to LEAs for devolution to named training schools as specified in schools’ agreements with the Department.

6. The Department will set LEA targets (based on number of schools and teachers and taking into account existing posts) for appointments of ASTs by the LEA and its schools. The targets will be notified in due course via the website. Funding will be allocated to LEAs by a formula based on these DfES targets. The allocation is for additional costs relating to salary and outreach work for schools and LEAs employing ASTs, and LEA costs relating to co‑ordinating outreach work, supporting ASTs and monitoring the AST programme. This grant is part of the Teachers Ring Fence (see Annex A for further details).

7. This will be allocated to LEAs by a formula based on the number of teachers including teacher not attached to a particular school. At school level, this will be based on the number of teachers at each school (headcount, not full time equivalent). LEAs may retain up to 3.5% of the allocation to support centrally employed teachers.

8. 80% allocated by formula according to the following nursery and primary school weightings:

50% pupil numbers, 25% school numbers; 25% free school meals eligibility and lower KS2 performance.

20% allocated by formula according to the following secondary school, special school and Pupil Referral Unit weightings:

50% pupil numbers, 25% school numbers; 25% free school meals eligibility and lower GCSE performance.

9. This fund will be allocated to LEAs by a formula based on number of schools with no more than 200 FTE pupils (primary and special) or 600 FTE pupils (secondary), and an allowance for nursery schools and PRUs. LEAs may retain up to 2.5% (subject to a maximum of £15,000) to fund their own costs in developing innovation projects and evaluating and disseminating good practice.

10. The balance should be devolved to schools in two parts. The first (at least 75% of devolved funds) is to support the proportionately higher cost to small schools of administrative staff, supply cover and other support for teachers. The second (no more than 25% of devolved funds) is intended to enable LEAs to develop with their small schools a programme of innovative approaches to joint working targeted at improving educational standards and improving efficiency of management and administration.

11. LEAs may vary the definition of small schools by setting lower (but not higher) thresholds than those used by DfES for the LEA allocations; and may determine local criteria for distribution between small schools, and participation in the innovative approaches programme.

12. The basis for allocating this grant will be notified to LEAs along with their allocations in November 2001.

13. All LEAs taking part in the three year programme starting in September 2001 will receive an allocation. These were notified to LEAs on 8 June 2001. This grant should be fully devolved to schools.

14. This grant will be allocated to LEAs taking part in the pilot programme from September 2001.

15. This grant will be allocated based on actual expenditure by an LEA (including NI and a small administration fee) for each teacher who applies for and is eligible for the bonus. Further guidance is available at www.dfes.gov.uk/teachingreforms/welcomeback or by ringing the Welcome Back Bonus registration team on 01928 792 022.

16. Expenditure by LEAs must be on activities directly related to the purposes and objectives set out above. Expenditure on certain demand-led programmes in this category will be held at LEA level within a single ring-fence. LEAs will be able to deploy the full budget flexibly to meet the various priorities, subject to delivering set amounts of funding to a school whenever defined conditions are met, and subject to any other conditions set nationally. The objective is to give local discretion in allocating budgets intended to benefit different groups of teachers and headteachers. The allocations are the following:

18. Up to 5% of the allocation available may be retained by LEAs to cover their central costs in providing induction training to teaching assistants irrespective of the source of funding for their recruitment (including eg those funded from the allocation to reduce adult:pupil ratios in reception classes, listed above under category 2: Standards and Curriculum). Where the LEA administers the Specialist Teacher Assistant Certificate (STAC) for teaching assistants it may retain an additional sum, with the agreement of primary schools, to cover the relevant costs. The balance should be devolved to schools in the following proportions: 80% to nursery and primary schools, and 20% to secondary schools, special schools and PRUs. LEAs may use the same allocation formula as in 2001-2002 or agree amendments with their schools.

19. Schools are encouraged to spend their allocations in the following areas:

· gross salaries, employers’ national insurance and employers’ superannuation contributions of employing additional teaching assistants;

· salary costs of assistants employed from Standards Funds in previous years and assistants employed to deliver National Literacy and Numeracy Strategy programmes - Early Literacy Support, Additional Literacy Support, Further Literacy Support and numeracy Springboard programmes;

· supply cover to release a senior teacher to attend parts of the induction training programme with participating assistants;

· professional development for teaching assistants recruited prior to 2001-2002, including course fees for training leading to qualifications accredited by QCA under the forthcoming national qualifications framework for teaching assistants.

20. Schools are encouraged to spend their allocations in the following areas:

· purchasing bursarial services from a central provider, whether an LEA or another source;

The Secretary of State attaches particular importance to the creative use of the second part of the fund. LEAs are encouraged to support small schools to undertake innovative approaches to improving educational standards. These approaches might involve school federations, collaboration or piloting ways of sharing support with other schools, educational establishments and with different community services, for example: financial support; facilities management; professional development; family friendly services; technical assistance; joint planning; joint purchasing; curriculum planning and specialist staff exchange. LEAs and schools are encouraged to share successful ideas via the website, which will also contain examples of existing good practice both by LEAs and by schools

21. This money must be spent on actions to improve the retention and recruitment of teachers. It may not be vired. More detailed guidance will be issued with the allocations in November 2001.

22. Fund sabbaticals of up to six weeks for experienced teachers to undertake a significant period of professional development away from their normal day-to-day role, to enhance their learning and effectiveness and bring benefits to their pupils and their school. Details of this scheme and the eligibility criteria were issued to LEAs on 8 June and are also available as a booklet from www.dfes.gov.uk/teachers/professional_development under 'Opportunities' .

23. To support LEA pilot projects to develop innovative approaches to teachers’ continuing professional development in the two years following induction.

25. Basic information about planned and outturn expenditure in this category will be collected within the composite Standards Fund return.

1. To help raise educational standards through effective investment in school buildings and infrastructure, including the capacity to use ICT.

· support LEA and school ICT plans and ensure that every school achieves or exceeds the baseline level of provision outlined below;

· to support the capital investment needs of buildings at maintained schools, according to the locally agreed priorities in the LEA’s Asset Management Plan (AMP);

· to provide schools with devolved funds to address directly their capital building priorities, including school security measures;

· to improve school buildings by seed funding which encourages and augments other funding sources;

· support the building of local authority administered nursery education facilities in disadvantaged areas;

· to provide on-site support units to enable secondary schools to provide teaching and support programmes for disruptive pupils at risk of exclusion and to speed re‑integration;

3. LEAs should measure their progress relative to outcome targets and priorities in their Education Development Plan; other plans agreed with the DfES (notably for Asset Management and ICT), and any current post-inspection action plan. Appraisal of progress of AMPs as satisfactory, which gives LEAs freedom to use formula funding free from further reference to the Department, includes appraisal that LEAs are successfully addressing their investment priorities. It will be a condition of grant for NGfL funding that LEAs should commit themselves to helping schools to improve on the baseline level of access to ICT.

· a computer:pupil ratio of at least 1:11 in each primary school and 1:7 in each secondary school and move towards the published target of an average ratio of 1:8 in primary schools and 1:5 in secondary schools;

· a connection to the Internet in every school, with all secondary schools connected at broadband level and as many primary schools as funding will permit

· secure, networked access to management information systems provided to relevant school staff by August 2003.

5. Schools should measure their progress relative to outcome targets and priorities in their School Development Plan, their ICT development plan, and any current post-inspection action plan.

7. The allocations are ring-fenced at LEA level. It will be a condition of grant for all NGfL funding in 2002-2003 that LEAs commit themselves to helping schools to achieve the baseline access to ICT and to support ICT provision beyond the baseline level. They will be allocated as follows:

Part A (ICT infrastructure & services) by a formula based on school and pupil numbers. At least 96% of this funding is to be devolved to schools in accordance with the LEA’s ICT plan and to ensure achievement of the baseline in all schools.

~~by a formula based on school and pupil numbers. 100% of this money is to be devolved to schools which are beyond the ICT baseline, by a formula based on pupil numbers.~~

Part B (broadband) by a formula based on school numbers adjusted by a measure of relative population density, to take account of differing costs of connectivity. LEAs may retain up to 100% of this money for participation in regional broadband consortia. If an LEA does not wish to join, or continue its membership of an RBC, Part B funding must be devolved to schools in full. In such cases it will be for the LEA to make the case to the DfES – on both educational and economic grounds – for adopting such an approach. They will also be required to agree with the DfES criteria for allocating this funding to schools.

8. Funding will be allocated in accordance with the guidance issued to LEAs on 30 August 2001. Copies can be found on the Department’s website at www.easea.co.uk/lea.

9. Revised allocations of this grant for 2001-2002 until 2003-2004 were announced in March 2001, following an increase in funding from the Budget Statement of 7 March. For 2002-2003, funds are allocated by formula based on school and pupil numbers - set at £7,500 per school and £18.74 per capita for primary pupils, £28.11 for secondary and £56.22 for pupils with SEN. This formula must be replicated in each LEA’s allocation to schools. Further guidance on this grant, including the arrangements for Voluntary Aided schools, is available at

10. The allocation of this grant for 2001-2002 until 2003-2004 was announced on 18 January 2001. Funding is allocated by formula on the basis of £50,000 per LEA plus a further share of the total budget of (£35 million for 2001-2002, and £60 million for 2002-2003 and 2003-2004) based on pupil numbers. Schools, including those in the VA sector, may apply to the LEA for this money for up to 50% of the cost of primary and special schools projects and 33% of the cost of secondary schools ones. Of the other funding, at least 75% must be “new” money, not derived from recycled grant income or savings from revenue funding. Further guidance on this grant is available at www.dfee.gov.uk/cap2001.

11. As in 2001-2002, and as already announced, funds have been allocated by formula based on secondary school pupils weighted by eligibility for free school meals.

12. Revenue funding will be allocated to all Fresh Start schools by formula (based on the size and phase of the school), subject to satisfactory progress against a Raising Achievement Plan. Capital funding will be allocated via a separate bidding process. Details are available from the Fresh Start team (contact Eric McEwen at eric.mcewen@DfES.gov.uk or on 020-7925 5464).

13. Revised allocations of this grant for 2001-2002 until 2003-2004 were announced on 31 July 2001. The allocation for 2001-2002 was based 50% on pupil numbers, and 50% on relative condition needs, in line with the condition data supplied to the Department as part of the AMP process. Further details of the allocation basis were given in Ken Beeton’s letter of 18 January 2001 to LEAs, which is available, along with further guidance, at www.dfee.gov.uk/cap2001. For 2002-2003 and 2003-2004, the split is 40% to the per pupil element and 60% to the needs based element. Revised allocations for these years, using the January 2001 pupil count and revised condition data where applicable, will be announced by December 2001.

14. Revenue funding based on applications submitted by LEAs in Autumn 2001 in line with the guidance issued by DfES on 31/08/01. Copies can be found on the Department's website at http://www.easea.co.uk/lea. Capital allocations were announced on 11 July 2001.'

15. All 150 local education authorities with their associated Early Years Development and Childcare Partnerships will receive an allocation. The Department for Transport, Local Government and Regions’ Index of Multiple Deprivation has been used to rank local authorities on the basis of the 20% most disadvantaged wards in the country. The more wards that an authority has in the 20% most deprived wards, the higher the ranking. This distribution has then been weighted by the number of three year olds in each local authority area. Allocations will range from £50,000 minimum to around £470,000 maximum in each year, depending on a combination of deprivation ranking and population levels for three year olds

16. The definition of capital is based on the CIPFA Code of Practice on Local Authority Accounting in Great Britain: a Statement of Recommended Practice. Funds provided under this Circular for capital purposes cannot be used (either at LEA or school level) for general maintenance, routine repairs or the purchase of books or training materials. Expenditure on capital at LEA level should relate to agreed priorities in the LEA‘s Asset Management Plan (AMP) or ICT Plan. At school level expenditure should relate to the School Development Plan and also be in accord with the priorities of the LEA’s AMP.

17 NGfL allocations are for a combination of capital and revenue purposes. The bulk of the resources are to be devolved to schools conditional on the school a) agreeing an appropriate ICT development plan which includes internet safety; b) allowing community access to its ICT facilities out of school hours where practical; and c) having its staff signed up with an approved provider of New Opportunities Fund ICT training.

Part A (ICT infrastructure & services) is intended to enable schools to meet the baseline, to support ICT provision beyond the baseline level, to use at least 15% to purchase digital learning resources and software and to implement their ICT plans. Getting all schools up to the baseline is the top priority and LEAs will wish to target sufficient funding for this purpose. LEAs may retain no more than 4% of the total funding for management and evaluation.

Part B (broadband connectivity) is intended to be spent by LEAs to provide high speed Internet connectivity and appropriate digital learning resources, particularly through participation in a regional broadband consortium (RBC). (Medium-speed connectivity, eg ISDN2, should be supported from Part A rather than Part B funds.)

The proportions of the total programme will be roughly: Part A 80%, Part B 20%,

18. These allocations must be spent by LEAs on the defined purposes, namely to fund schools needing to incur recurrent expenditure in order to reduce class sizes as defined in the LEA’s plans agreed with the Department.

19. Even though money is devolved to schools, the LEA remains accountable for the delivery of the commitment to reduce class sizes in each funded school, in accordance with the plans agreed with the Department. At school level, capital and recurrent funds need to be separately identified on planning/outturn monitoring returns.

20. These allocations are devolved to schools which may use them to fund all or part of capital projects, or as a contribution to LEA-sponsored projects. Allocations may be rolled over for a maximum of three years. The funding must be used for school buildings, and must not be used for ICT or other equipment except at the margins of a larger building project funded by this grant. Further guidance can be found at www.dfee.gov.uk/cap2001

21. These allocations are to fund capital projects which improve the condition or suitability of school buildings. The funding must not be used for ICT or other equipment except at the margins of a larger building project. Further guidance can be found at www.dfee.gov.uk/cap2001

22. These allocations are to fund the running of Learning Support Units in secondary schools supporting salary, training, specialist materials and other recurrent overheads.

23. Guidance on Fresh Start is available from the Fresh Start team (contact Eric McEwen at eric.mcewen@DfES.gov.uk or on 020-7925 5464).

24. The grant is capital money intended to address the priority needs of buildings at maintained schools, according to the locally agreed priorities in the LEA’s AMP. Whilst addressing condition needs is a priority, this funding should be joined up with other funding locally to achieve long term best value solutions, and contribute to the modernisation of schools and increasing diversity, rather than simply short term capital repairs. It can also be used to fund capital projects for Early Years provision or at Pupil Referral Units. Further guidance on this grant is available at www.dfee.gov.uk/cap2001.

25. Revenue funding to employ additional teachers and capital funding for additional classrooms, to ensure that infants transferring to junior classes continue to benefit from smaller classes at schools which increased their intake to meet our infant class size limit.

· creation of new local authority nursery education facilities in disadvantaged areas;

· extension to existing local authority nursery education premises in a disadvantaged area;

· refurbishment of existing local authority nursery education premises in a disadvantaged area, where such work would meet the definition of capital.

Whilst the expenditure is allocated, in most cases, on the basis of the number of wards falling into the 20% most deprived in the country, it is not required that the funding should be spent specifically in these areas. It is for the local Early Years Development and Childcare Partnership, in association with the local education authority, to decide on the areas of disadvantage that will be best served by the deployment of this funding and these do not need to be the 20% wards.

27. Basic information about planned and outturn expenditure in this category will be collected as part of the composite Standards Fund return.

Standards Fund 2002-2003: Teachers Ring Fence

For 2002-2003, there will continue to be a “ring-fence” for demand-led funding related to teachers.

The intention of the ring-fence is to reduce bureaucracy for both the DfES and LEAs, since allocations will be made by against estimates of need, rather than demanding detailed information on exact spend; by allowing LEAs freedom to vire within the ring-fence (and between years), they should have sufficient flexibility to cope with differences between demand for support in individual areas, and the individual allocations made available.

The following grants will be covered by the ring-fence arrangements in 2002-2003:

(a) acceptance of an allocation under each of the ring-fence grants will mean, as a condition of grant, that the LEA will pay relevant sums to schools regardless of whether that allocation is exhausted or not. For example, acceptance of a full allocation under the AST grant means that an LEA agrees to fund all AST appointments up to its target number. Similarly, full acceptance of the NQT grant required an LEA to pay each of its schools £1000 per FTE per NQT per term;

(b) so long as condition (a) is kept, LEAs have complete freedom to vire between ring-fence grants;

(c) as elsewhere in the Standards Fund for 2002-2003, any ring-fence grants unspent at the end of the year can be retained by the LEA;

(d) exceptionally, where an LEA is able to demonstrate that there is a significant shortfall between its allocations, in total, for ring-fence grants, and the sums to be paid to schools, the DfES will consider making an additional in-year allocation. As a rule, however, we will expect LEAs to manage with the allocations made at the start of the year.

Sums to be paid by the LEA

LEAs and schools must pay Golden Hellos to all teachers who meet the eligibility criteria set out in DfES guidance that has been issued to LEAs. Please contact Paul Betteridge if you need further guidance: paul.betteridge@DfES.gov.uk.

LEAs must fund all AST appointments made by schools, or the LEA itself, up to the given target.

The cost to the school of placing the teacher on the AST salary scale - guidance on the calculation of these costs to be issued later

^[1] Count includes schools in special measures at the end of academic year 2000/2001. Fresh Start schools are not included as they have access to additional funding through another stream. Schools that are eligible for funding under more than one criterion will be allocated funding only in relation to that factor which gives them the higher amount.

Communications with LEAs
Document Title:		STANDARDS FUND 2002-2003
Summary:	Information on the Standards Fund for 2002-2003		Function: Subject: Audience: Sent to: Date of issue: Reference:	Relevant LEA Contact by e-mail and by post to CEO 28 September 2001 LEA/054/2001
Action required and due date:	Local Education Authorities to confirm take up of allocations by 8 February 2002
Further information:
Name	Graeme Roberts
Address	DfES Sanctuary Buildings Great Smith Street Westminster London SW1P 3BT
Telephone	020-7925-6086
Email	Enquiries.standardsfund@dfes.gsi.gov.uk
DfES communications with LEAs will be placed on the website at www.easea.co.uk/lea for reference. This site is regularly updated and has a list of contents.