Cabinet agrees school meal price hike to £2.30 from September; government makes meals free for first 3 years of school

Cabinet agrees school meal price hike to £2.30 from September; government makes meals free for first 3 years of school

Cabinet agrees school meal price hike to £2.30 from September; government makes meals free for first 3 years of school

                         

Councillor Tony Smith (Cabinet Member for Children and Family Services) explains to Wirral Council's Cabinet about the changes to school meals cost and entitlement
Councillor Tony Smith (Cabinet Member for Children and Family Services) on the far left of the photo explains to Wirral Council’s Cabinet about the changes to the cost of school meal cost and what universal free school meals means

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The item on changes to the price of school meals starts at 2:09 in the video above and the report to Cabinet and its appendix are available on Wirral Council’s website by following those links.

One of the decisions made at last Thursday’s Cabinet meeting was to increase the price of school meals to £2.30 from September 2014. This will increase the price of school meals at three nursery schools, sixty-four primary schools and thirteen special schools on the Wirral.

Just under half (48%) of school meals are however provided free. Families on means tested benefits such as income support, income-based Jobseekers Allowance, income-related Employment and Support Allowance, receiving support under Part VI of the Immigration and Asylum Act 1999, the guaranteed element of State Pension Credit, Child Tax Credit (providing the person working is not also entitled to Working Tax Credit and has an income of less than £16,190), Working Tax Credit run on and Universal Credit may be entitled to free school meals.

However those who are entitled to free school meals don’t receive this automatically and have to first apply to Wirral Council. This can be done on Wirral Council’s website by clicking on the link on this page “Apply for Free School Meals”.

The increase in the school meals cost is however the bad news, but there is good news. From September (as part of the reforms the government are bringing as part of the Children and Families Bill) there will be a legal requirement that school meals will be free for all children (not just children from families on the means tested benefits mentioned earlier) in reception as well as years 1 and 2. This will have effect from September 2014.

To cope with the increased demand that Wirral Council predicts will happen once there is a free school meal entitlement for all children in reception as well as years 1 and 2, Wirral Council are starting a recruitment process to hire a further eighty to a hundred people to work in school kitchens preparing the extra meals. Wirral Council will be receiving extra money from the government to pay for this extra free school meals entitlement.

The price increase and putting in place arrangements for the start of universal free school meals for infants from September were both agreed by Cabinet. However the topic will also be discussed at a future meeting of Wirral Schools Forum.

Cllr Tony Smith (Cabinet Member for Children and Family Services) had this to say about it at the Cabinet meeting, “This report is in two parts Chair, part one is to increase the price of a paid meal in schools from £2 to £2.30 with effect from September 2014. The second part is to implement government policy with the introduction of universal free school meals for infant aged children.

I’ll just take the first one free school meal policy. Metro provide to the authority meal service for eighty schools, nursery, primary and special and has a turnover in excess of £4 million. Food costs are increasing and unit costs remain historically in excess of £2.80. With a charge of £2 for each meal there is a significant subsidy. Decision about the price of a main meal is taken by government bodies taking account of local authority costs.

Many other authorities in the area that we’ve looked at currently charge in excess of £2 per a meal although none charge £2.30. Can I just say we haven’t got the figures from other local authorities for this year so we’re talking about what the charges were last year and some of those are in excess of £2?

The increase recommended that some, not all inflationary pressures over the period to help the Metro trading account achieve and maintain a balanced position. The cost of meal production will be reviewed and an expansion of the service will provide greater economies of scale through better financial monitoring.

The second part is on universal free meals. I think this has been adopted by the Deputy Leader in the last week or so. This is a new national policy initiative backed by legislation to provide all infant age children in schools with a free meal. Plan for this change, some additional equipment and alterations is needed. A capital grant of £623,802 has been allocated and should be included within the capital program.

Schools will be paid £2.30 by the government for each additional meal produced. It’s anticipated that Metro meal volumes will increase by 80% in September with an ongoing grant in the full year for schools of £3.5 million. The additional revenue and this is good news again funding will fund additional food production and the need for more staff in kitchens. We’re talking about eighty to a hundred posts in Metro kitchens.

At this time proposals have not been considered by the Schools Forum and the headteachers groups although this will happen prior to implementation. I’ve got three recommendations, that one that the price of a paid school meal is increased to £2.30 from September of 2014 in primary schools where their services are provided by Metro services and that this increase is recommended to governing bodies of primary and special schools.

Two subject to Council approval, that the capital grant received will implement universal free school meals for infants in maintained schools totalling £623,802 is included within the capital grant for 2014-15 and is used to progress a range of schemes described and thirdly that Metro school kitchen staffing numbers are increased to take into account the additional meal numbers with costs funded by schools and the Department for Education revenue grant based on £2.30 per an additional free meal served. Thank you Chair.”

Cllr Phil Davies replied, “OK, thanks very much, can we agree those recommendations?”

Cabinet agreed the recommendations.

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Strange: Why proceed with a consultation on closing Lyndale School when the reason for closing it no longer exists?

Strange: Why proceed with a consultation on closing Lyndale School when the reason for closing it no longer exists?

Strange: Why proceed with a consultation on closing Lyndale School when the reason for closing it no longer exists?

                                         

The Cheshire Cat from Disney's Alice in Wonderland (the 1951 version)
The Cheshire Cat from Disney’s Alice in Wonderland (the 1951 version) which seemed about the only image that seemed ideal for this story about Lyndale School and Wirral Council

First, if you’ve been away on holiday the past two months a recap on what’s happened so far in a saga that’s seems to quickly becoming as complicated as the plot to the Lord of the Rings.

It starts with a proposal to Wirral Council’s Cabinet by Wirral Council officers to consult on closing Lyndale School. At the same meeting Wirral Council’s officers also proposed introducing a new system for funding “high needs” students where from 2014-15 extra funding to schools would be determined by which one of five bands that school’s pupils were categorised as being in. There was an emotional plea made to councillors on the Cabinet by Dawn Hughes (who has a child at the school) not to agree to consult on closure of Lyndale School (which was reported on this blog). However Labour councillors on Wirral Council’s Cabinet decided to both agree to consult on closing Lyndale School and also the banding proposals too.

It’s important at this stage to state the reasons given back in January for consulting on closing Lyndale School by Wirral Council officers, which are detailed both in the minutes and the report.

Here are some quotes from the report (although at this point in time some of these purported facts have been found to be factually incorrect).

“The closure of the Lyndale School is proposed for consideration because the viability of the school is compromised by its small size and falling roll, which both contribute to a difficult financial position.”

“In 2013-14 the school has set a budget for the year based on School Funding of £761,733 with a small deficit of £3,647. This was achieved using all accumulated balances brought forward of £51,707. The latest position indicates there will be deficit at the year end of £15,667. This has resulted from changes in staff costs and support services.”

“In 2014-15 the school forecast, before any corrective action, is that there would be a deficit of £72,000. This deficit has the potential to increase to in excess of £232,000 based on the numbers of children currently on the school roll.”

“This means that for 2014-15 the shortfall the school may experience will be approximately £72,000 for the year based on the number currently on school roll. This is approximately 9% of their budget.”

What this report in January didn’t mention at all (which was a pretty glaring omission at the time although a report to the same meeting did mention it but that other report didn’t specifically refer to Lyndale School) was this was all dependent on the assumption that Wirral Council would have its application to the government that the minimum funding guarantee of 98.5% wouldn’t apply to it approved. The minimum funding guarantee is a legal requirement on Wirral Council found in Regulation 19 of The School and Early Years Finance (England) Regulations 2013 not to reduce funding to a school for its 2014-15 financial year (based on its 2013-14 budget allocation) by more than 1.5%. However the regulations allow the Secretary of State for Education to agree to requests from local councils to a different minimum funding guarantee.

Wirral Council did at some point make an application to the Education Funding Agency for the minimum funding guarantee of 98.5% not to apply to it in 2014-15 (although I’m waiting for this Freedom of Information Act request to the Education Funding Agency to be answered as to the details on that). On the 27th January 2014 Cllrs Tom Harney, Phil Gilchrist, Jeff Green, Ian Lewis, Cherry Povall and Pat Williams called in the two Cabinet decisions.

These two decisions then went to the Coordinating Committee meeting of the 5th February 2014 to be looked at again. However the Coordinating Committee didn’t have the required parent governor representatives and Diocesan Body representatives that they were required by legislation to have when making decisions on educational (or school) related matters. So the meeting of 5th February 2014 was adjourned and a recommendation made to the Council meeting on the 25th February 2014 so that the parent governor representatives and Diocesan body representatives could be added to the Coordinating Committee. This was agreed at a meeting of the full Council on the 25th February 2014.

While all this was going on, the Cabinet made its recommendation on the 2014-15 Schools Budget to Council on the 12th February 2014 and Council agreed the Schools Budget on the 25th February 2014 (including matters that were yet to be decided because of the adjourned Coordinating Committee meeting). The issue of the upcoming call ins was raised at the Cabinet meeting and councillors were told that there was a contingency (of £908,900) included as part of the Schools Budget which would mean that whatever the outcome of the call ins were that it could still be funded.

On the 27th February the Coordinating Committee met again to consider the two call ins on the decision to consult on closing Lyndale School and the banding proposals.

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Video of the Coordinating Committee on the 27th February to consider the Lyndale School consultation closure call in (adjourned from the Coordinating Committee on the 5th Feburary).

On both matters the draft minutes state that a majority of the councillors plus the parent governor representative present who had a vote, voted to uphold the original Cabinet decisions. It’s worth pointing out that on the Lyndale School closure consultation decision the Conservative councillors proposed instead a review (which was voted against by nine votes to six). On the banding proposals the Conservative councillors proposed the following motion “We would like to seek assurance that the required contingency funding is in place to top up the special educational funding to ensure that the level of funding required for the best care and education is provided for all children” (which was lost by seven votes for the motion and eight against).

The votes on the Labour councillor’s recommendations to uphold the two original Labour Cabinet decisions were on the Lyndale School consultation closure decision nine votes to six (the Labour councillors plus the Lib Dem councillor Cllr Alan Brighouse voted in favour of a consultation on closure whereas the Conservative councillors and parent governor representative voted against). The vote on a recommendation by Labour councillors to uphold the Labour Cabinet decision on the banding proposals was won by a narrower margin of eight votes to seven (the Labour councillors voted for it with the Lib Dem councillor, Conservatives and parent governor representative being opposed to it).

So, what’s new? Well unfortunately I had to go (and as the first call in on consulting closing Lyndale School had taken three and half hours had run out of tape anyway) after the first decision over the Lyndale School closure consultation decision. So I’ve only found out what happened at the second part of the meeting by reading the draft minutes of that meeting were available at last Thursday’s Cabinet meeting.

Here is what the draft minutes state about the minimum funding guarantee. My comments are in italics underneath.

The first quote is about the explanation of the banding proposals decision by the Cabinet Member Cllr Tony Smith.

“Basically, the report had dealt with the banding model and informed how top ups would be made. The Committee noted that the minimum funding guarantee was now more affordable, therefore the application for an exemption from this requirement had been withdrawn.”

Well that’s a revelation isn’t it? When did Wirral Council withdraw its application for an exemption from the minimum funding requirement? The minimum funding guarantee was always “affordable” as there was a contingency (in case the application for a minimum funding guarantee exemption was turned down of £908,900). Wirral Council also gets for 2014-15 an Special Educational Needs Reform Grant of £364,135 (see here for the details) which according to the letter linked to the government state that Wirral Council can “choose how to spend the money in order to best meet local need”.

Then this in the draft minutes from the evidence of the Vice-Chair of Governors at Lyndale School (and Chair of their Finance Committee) Ian Harrison.

“Mr Harrison informed that the Lyndale School now had a surplus forecast for 2013/14. It was going to get the minimum funding guarantee. There would be a small surplus in 2014/15.”

So if the original reason for consulting on closing Lyndale School was that an officer (or officers) at Wirral Council thought it wouldn’t have enough money, but the minimum funding guarantee exemption request has been withdrawn so that Lyndale School is now projecting a surplus (at least for 2014/15), why is Wirral Council going to the trouble of a twelve week consultation on closing the school?

“Members then asked Mr Harrison some questions which he answered as appropriate. It was noted that:

  • The Cabinet had received an early estimate rather than one at the end of the period when it would have been more realistic.”

Perhaps councillors were too polite to suggest that the Cabinet had based their decision on an estimate based on an assumption about the minimum funding guarantee (that is that the assumption that it would be approved and not withdrawn) which turned out not to be the case.

  • None of the special schools agreed with the formula that had been approved.

There are eleven special schools on Wirral (Hayfield, Clare Mount, Orrets Meadow, Gilbrook, Stanley, Elleray, Lyndale, Foxfield, Meadowside and Kilgarth). The 2014-15 budgets for each special school would have each been affected by the banding proposals. Had the minimum funding guarantee exemption application not been withdrawn, other schools could have been facing deficits (although Lyndale was the school most affected). The motion that was agreed on this item is stated in the draft minutes as “That the Committee upholds the Cabinet’s decision and it be ensured that consultation is meaningful, informed and transparent”. This is very unclear. Does that mean there’s going to be a consultation on the banding proposals or is it referring to the consultation to close Lyndale School?

So to summarise, Wirral Council officers thought there would be a large deficit in Lyndale School’s budget so recommended to the Cabinet that they should consult on closing the school. This decision was called in and during the call in it was discovered that Wirral Council’s application for an exemption from the minimum funding guarantee had been withdrawn. So now there’s a legal requirement that Lyndale School will get at least 98.5% of the amount they got in the previous year. As Lyndale School had looked into reducing costs of non teaching staff to reduce the original estimated large deficit, they now estimate a small surplus in their budget for 2014/15.

However Wirral Council is still going to carry out a twelve week consultation on closing the school based on an estimated deficit in Lyndale School’s budget that now can’t happen because the minimum funding guarantee of 98.5% is a legal requirement on Wirral Council.

How much is such a consultation, based on a guesstimate by officers (which ended up being wrong) going to cost? Bearing in mind the above, is it any wonder that people get confused by Wirral Council’s decision-making and politics? Am I missing something vital or is everything I’ve stated here correct?

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Wirral Council breaches expenditure limit by £741,000 and loses out on over £1 million of funding

English: Wallasey Town Hall, Wirral, England a...
Wallasey Town Hall, Wirral, England where the Schools Forum will be held. (Photo credit: Wikipedia)

In a report going to Tuesday’s School Forum (Agenda Item 13) Wirral Council admit they breached an expenditure limit by £741,000 in 2012/2013 (which relates to the Children and Young People’s Department, which has democratic accountability through the Cabinet Member for Children’s Services and Lifelong Learning, Labour Cllr Tony Smith (Upton)).

In addition to this £741,000 needed, a further £333,000 is needed for the “Private Finance Initiative Affordability Gap”, £32,000 needed for “Other” (which is probably a knock on effect of these other changes) and £71,000 extra needed for the Carbon Reduction Budget which brings the grand total required to £1.177 million.

This’ll (assuming the Schools Forum agrees to the change) be made by reducing the Schools Contingency Budget, the Early Years Contingency Budget and the Academy LACSEG central budget.

Basically when a school converts to become an Academy (as some have this year), the new Academy receives what it would before from the Local Authority (in this case Wirral), plus the local authority share of the grant Wirral Council receives from government (this covers the Academy’s costs of things they now have to pay for like assessing eligibility for free school meals, special educational need support services, certain staff costs etc).

However the transfer to the new Academies follows a long process that Wirral Council’s Children and Young People’s Department should have known about at the time of setting the 2012/2013 Schools Budget (earlier this year), which begs the question, why weren’t assumptions that certain schools would become academies factored into the Budget when it was set earlier this year (or is this too much crystal-ball gazing to expect of Wirral Council)?

This means the Indicative Schools Budget will be reduced by 18% to factor in Wirral Council’s overspending and faulty Budget assumptions. Certainly while one expects minor in-year budget adjustments to reflect unforeseen circumstances (usually using reserves set aside for this), these Academy changes have been “on the cards” for some time! If some of Wirral Council’s departments continue to overspend in this fashion (as they have for many years), eventually the cuts in 2013/2014 will have to be more severe, to make up for any 2012/2013 overspend. As we’re already halfway through the 2012/2013 Financial Year, some of that 2012/2013 Budget has already been spent.

P.S. And as if the above wasn’t bad enough Wirral Council lost out on ~£1.6 million of education funding (agenda item 4) because they gave the Department for Education the wrong numbers for Early Years learners, from the report this happened because “this was not identified at the time due to a breakdown in validation checks in Wirral” .