Contents

Part A: General Arrangements for the Standards Fund

Part B: Individual categories:

1.       School Improvement

2.       Inclusion

3.       Standard and Curriculum

4.       Diversity and Excellence

5.       Teachers and Support

6.       Capital and Infrastructure

Annex A: Teachers Ring Fence

Annex B: Standards Fund Programme 2002-2003

Annex C: Allocations 2002-2003

This guidance is also available on our website www.dfee.gov.uk/standardsfund 

or by email from enquiries.standardsfund@dfes.gsi.gov.uk

Further hard copies are available from:

         DfES Publications

         PO Box 5000

         Sudbury

         Suffolk   CO10 6YJ

         telephone: 0845 60 222 60

         fax:             0845 60 333 60

quoting reference DfES/LEA/054/2001

Part A: General Arrangements for the Standards Fund

Introduction and action required

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. 

Legal basis

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.

DfES grant and LEA contributions

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.

Changes for 2002-2003

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.

Youth Service

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.

New National Curriculum, PSHE and Citizenship

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

National Professional Qualifications for Headteachers; and

Leadership Programme for Serving Heads

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).

Supported Early Retirement Scheme for Headteachers

This grant was only intended to be available for two years from April 2000. 

School Security

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.

School Laboratories

This grant was only intended to be available for two years from April 2000. 

Action for LEAs

8.      The Secretary of State expects LEAs to:

·          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. 

The six categories

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

1.      School Improvement:

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.

2.      Inclusion

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.

3.      Standards and Curriculum

Purpose: to raise standards of achievement across the curriculum.

4.      Diversity and Excellence

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.

5.      Teachers and Support

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.

6.      Capital and Infrastructure

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

Continuing professional development and governor training

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.

Grant rate

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. 

Matched funding

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. 

Formula allocations

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.

Virement of allocations

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:

          all grants in Category 6: Capital and Infrastructure;

          Grant 303: Ethnic Minority Achievement;

          Grant 315: School Achievement Awards;

          Grant 511: Recruitment and Retention Fund.

(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.

Payment of allocations to LEAs and schools

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

Devolution of funding to schools

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. 

Timing of expenditure

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. 

Eligible expenditure

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.

Reporting of expenditure

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.

Consortium arrangements

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. 

Demand-led funding requirements related to teachers

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. 

Payment to teachers for in-service training

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. 

Performance monitoring

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.

Evaluation

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. 

Contacts

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.  

Enquiries

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

Purpose

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

Objectives and targets

2.      Allocations in this category are intended to:

·          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;

·          enable LEAs to support and challenge schools causing concern.

Performance measures

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.

Formulae for allocation and devolution requirements

101 A: Schools facing Challenging Circumstances

4.      This will be about 18% of the total School Improvement allocation. 

Will be allocated to LEAs by a formula which takes account of:

·          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.

Guidance on expenditure

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. 

Management information

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

2:    Inclusion

Purpose

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.

Objectives and targets

2.      Allocations in this category are intended to:

·          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;

·          support the implementation of the SEN and Disability Codes of Practice;

·          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;

·          maintain and develop arrangements for study support;

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

Performance measures

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.

Formulae for allocation and devolution requirements

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.

201: Social Inclusion: Pupil Support

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. 

202a: Special Educational Needs

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. 

202b: Sick Children and Children in Public Care

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.

203: Teenage Pregnancy

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.

204: Drug, Alcohol and Tobacco Prevention and School Advisers

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.

206: Study Support

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.

208: Child Protection Coordinators

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.

Guidance on expenditure

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.

Management information

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

3:    Standards and Curriculum

Purpose

1.  To raise standards of achievement across the curriculum.

Objectives

2.      To raise standards of pupil achievement by:

·          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;

·          introducing vocational GCSEs from September 2002;

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

·          maintaining and extending the broadest possible access to music services;

·          establishing and supporting Playing for Success centres;

·          supporting early years training and development;

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

·          supporting a network of early education centres;

·          Extending and improving maintained nursery school services;

·          funding bonuses for staff at successful schools.

Targets

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.

Performance measures

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.

Formulae for allocation and devolution requirements

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.

301a: National Literacy Strategy

6.      The allocation will be divided into three parts:

(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.

301b: National  Numeracy Strategy

7.      The allocation will be divided into three parts:

(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.

302: Key Stage 3 strategy

8.      This allocation is divided into three parts. 

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

303: Ethnic Minority Achievement

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.

304: Traveller Children Achievement

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

306: Booster classes

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.

308: Education Health Partnerships

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.

309: Qualifications

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.

310: LEA Music Services

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.

311: Playing for Success

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.

312: Early Years Training and Development

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.

313: Early Excellence Centres

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

314: Adult:Pupil Ratios

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.

315: School Achievement Awards

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. 

316: Nursery Schools Project

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

·          1-5 schools =  £8,250 fixed element plus pupil numbers enhancement;

·          6-10 schools = £9,250 fixed element plus pupil numbers enhancement;

·          11-15 schools = £20,000 fixed element plus pupil numbers enhancement;

·          16+ schools = £30,000 fixed element plus pupil numbers enhancement.

The pupil enhancement is approximately £85 per head.

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

Guidance on expenditure

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.

Literacy and Numeracy (301a and 301b)

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:

·          embed and secure the National Literacy Strategy in primary schools;

·          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;

·          provide supply cover for literacy co-ordinators to attend 1 day of training.

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

·          intensive support to the equivalent of 18 schools per consultant;

·          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;

·          mathematics co-ordinators to attend one day of training;

·          teachers to attend training on support for more able pupils.

302: Key Stage 3 Strategy:

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. 

303: Ethnic Minority Achievement

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.

304: Traveller Children Achievement

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. 

306: Booster classes

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

308: Education Health Partnerships

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

309: Qualifications

30.    To support the introduction of vocational GCSEs from September 2002.

310: LEA Music Services

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

311: Playing for Success

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.

312: Early Years Training and Development

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

313: Early Excellence Centres

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. 

314: Adult:Pupil Ratios

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.

315: School Achievement Awards

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

316: Nursery Schools Project

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. 

General guidance on school expenditure

38.    Expenditure is likely to include:

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

·          the cost of training courses;

·          payment for teachers to attend training out of school hours;

·          teachers and other adults to run a literacy and numeracy booster programme;

·          teaching materials and resources.

Management information

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.

4:    Diversity and Excellence

Purpose

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.

Objectives

2.      To raise standards of pupils achievement by:

·          access to learning mentors for every child who needs one;

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

·          summer schools for Gifted and Talented 10-14 year olds in all LEAs;

·          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/

Targets

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.

Performance measures

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.

Formula for allocation

401: Excellence in Cities and Excellence Clusters

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. 

402: Gifted and Talented Summer 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.

403 and 404: Specialist Schools and Beacon 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.

405: Pupil Support Allowances

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.

406: Pupil Learning Credits

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.

408: City Learning Centres

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. 

409: Excellence Challenge and 410: Small Education Action Zones

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

Guidance on expenditure

401: Excellence in Cities

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