The £1,092,160.12 PFI invoice connected to Lyndale School & why Wirral Council can afford to keep Lyndale open

The £1,092,160.12 PFI invoice connected to Lyndale School & why Wirral Council can afford to keep Lyndale open

The £1,092,160.12 PFI invoice connected to Lyndale School & why Wirral Council can afford to keep Lyndale open

                                               

Wirral Schools Services Limted Invoice Wirral Borough Council 12th December 2013 PFI Schools £1,092,160.12

To the left is a £1,092,160.12 invoice for Wirral Council for paying a company called Wirral School Services Limited under a PFI agreement. This is a monthly invoice, so the yearly total comes to about £12 million. As previously reported this is a story about money and education that is rather complex, but does connect to Lyndale School.

The current PFI contract was signed ten years ago, when Cllr Phil Davies was Cabinet Member for this area. It was originally supposed to run for 25 years in 2001 but was extended in 2004.

For many of these years, if I am getting this right, it was funded from general Council resources and not through the Schools Budget. This year £600,000 of costs for the PFI agreement are paid for by an £1.4 million underspend in money that it was agreed would be spent on special educational needs.

Next year, it’s been stated that Wirral Council want to reduce its contribution to the PFI agreement by £2 million, which led to some angry exchanges at a recent Wirral Schools Forum meeting about the consequences of this decision.

Basically it means that for 2015-16 (the year that there’s been the recent consultation on closing Lyndale) that £2 million of extra compensatory savings will have to be found because of a political decision. The actual funding from one year to the next that Wirral Council is receiving for education isn’t really changing that much so this £2 million issue has dare I say it ruffled some feathers.

I state political decision because (yes there was a U-turn on this last year so who knows really) statements already made are that Labour want to freeze Council Tax in 2015-16 at 2014-15 levels.

However, going back to Lyndale School (soon to be discussed at a special Cabinet meeting). This underspend on special educational needs (money already agreed that should be spent in this area) was shifted out of that budget to pay for the PFI costs. I have requested the actual contract between Wirral Council and Wirral School Services Limited, first by a freedom of information request (denied), now as part of the audit (I’m still waiting).

Based on what I do know, I can tell you this. Part of the PFI cost is funded by a fixed grant Wirral Council get of £5.5 million a year. There are facilities management support costs built into the contract that Wirral Council charge the schools for which total about £3.3 million a year. However this leaves a gap of £2.5 million.

Until this year (although strangely at the Lyndale call in officers stated that funding educational items from outside the schools budget would cause problems and as far as I remember somewhat glossed over the fact that they were already doing this to the tune of £millions for the PFI schools), Wirral Council have plugged this gap.

The problem is essentially due to a political decision not to raise Council Tax in 2015-16 and not carry on with this arrangement (diverting an underspend from special educational needs to plug the gap this year) that although the education money Wirral Council receive is hardly changing that from next year (when there’s a General Election on) the cuts to education can be blamed on the national coalition government despite this being a local decision that’s been made.

I’ve looked at what happened in another borough on Merseyside at their Schools Forum when there’s an underspend in special educational needs. The money didn’t get diverted in this way and was carried forward to the next year to be also spent in that budget area.

There’s no legal impediment in money between different budget headings in the schools budget being shifted around in this way, but as far as I can tell not one of the schools covered by the PFI agreement fall into the special schools category (please correct me if I’m wrong on this point). Therefore there is the moral question to be asked should money previously agreed to be spent on special educational needs be diverted to pay for PFI projects in this way?

Obviously if you’re a parent or member of staff at Lyndale School the answer to that would probably be no. Yes, I have somewhat simplified matters and there are complicated factors involved also in schools funding such as the minimum funding guarantee which for example for this year guarantees that the money schools receive from Wirral Council won’t drop by more than 1.5%.

Interestingly as Wirral Council wanted to bring in its “banding” for special educational needs this year, it asked the Education Funding Agency for permission to drop school budgets by more than the minimum funding guarantee (which is a legal requirement) allows. However this request was withdrawn.

There is also a little confusion as to what was agreed by the Wirral Schools Forum in its five bands for special educational needs. There’s £10,000 for each child, then bands depending on need that go up to £16,000 (band five). However band five was never an absolute limit and from what I remember there was flexibility to go above this in certain circumstances. In fact I doubt putting funding into bands would have ever been agreed by the Wirral Schools Forum without that uncapped band.

You see there is an uncapped band that applies to independent schools, non-maintained schools or schools located outside of Wirral. If Lyndale closed and some children were transferred to schools outside of Wirral there wouldn’t be a cap on their education funding. In fact it almost seems wrong to cap funding to Wirral’s special schools, but not outside of the Wirral.

To give an example of a special education school on the Wirral that falls into the independent category, below is a three page invoice to Wirral Council for one term which totals £535,098.00. These fees range from £10,213 a term to £23,361.00 (or over a year would be from ~£31k to £69k per a pupil). Just for comparison, the consultation on closing Lyndale is because ~£33k a child per a year is seen as high, but when you compare that to what children at West Kirby Residential School cost Wirral Council is actually lower.

44 children at West Kirby Residential School cost £535,098 a term (£12,161 a term). There are three terms in a year, so that works out at about £36,483 a child there compared to ~£33k at Lyndale.

The truth is Wirral Council officers have made an artificial comparison between Lyndale School and other special schools were the needs of children (and therefore staffing costs) were far, far less than at Lyndale School which made Lyndale School look expensive by comparison.

What do you think? Below is a heavily redacted invoice (unfortunately as its double-sided some of the redactions come through on the other side) that backs up my argument that Wirral Council does have the money currently to fund special schools at Lyndale levels (or even in the case of West Kirby Residential School above Lyndale levels).

West Kirby Residential School invoice November 2013 Page 1 of 3 £535098
West Kirby Residential School invoice November 2013 Page 1 of 3 £535098
West Kirby Residential School invoice November 2013 Page 2 of 3 £535098
West Kirby Residential School invoice November 2013 Page 2 of 3 £535098
West Kirby Residential School invoice November 2013 Page 3 of 3 £535098
West Kirby Residential School invoice November 2013 Page 3 of 3 £535098

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Lyndale School Consultation Meeting: David Armstrong explains why there’s a consultation and questions begin (Part 2)

Lyndale School Consultation Meeting: David Armstrong explains why there’s a consultation and questions begin (Part 2)

Lyndale School Consultation Meeting: David Armstrong explains why there’s a consultation and questions begin (Part 2)

                      

Continues from Lyndale School Consultation Meeting: Julia Hassall explains why Wirral Council are consulting on closure (Part 1).

David Armstrong (Assistant Chief Executive) said, “OK, thank you. Apologies to those of you who’ve heard this five times before. This is the last time for you. I wanted to just set out the bones of how the school is funded and set out some information requested by staff and I’m responsible for the two budgets and I’ll come back to those and I’m also responsible for school assets and school buildings and I have been responsible for those back in fact to the days when it was relocated from Clatterbridge.

I look after two budgets, a £80 million budget for the Children and Young Peoples Department budget which pays for things like fostering, adoption and a whole host of the other none related schools services. We also have a £240 million budget which is the schools budget. It comes with the title of Dedicated Schools Grant, it comes from government summarised as DSG, it comes into the Council it has to be passed onto schools.

So as Julia [Hassall] said, it’s not about the Council somehow undertaking some of that money and treating it as a saving. It’s about the long term financial security of the school. The DSG when it comes in covers four areas, early years, primary, secondary and special.

(drowned out by someone’s mobile phone)

It goes through a formula, a local formula and that is distributed into schools.”

He explained how the Schools Forum decided on the formula and how it the Schools Forum comprised of volunteers representing the various types of schools. He said that when he was a head in the 1980s, he only managed two budgets in the school. One was books and paper and the second was whatever the school made selling photos. In 1990 there was a change and the big budgets that had been managed by councils were redistributed to schools.

Mr Armstrong said that to begin with each council had its own formula and that every council used different things to redistribute the schools budget. With special schools he said “it has always been slightly different”. He said that nationally that there was a movement at least in part to fund special schools by pupil and not just by place. David Armstrong said that the numbers at Lyndale School had fallen, making it difficult to run the school. In the last few years he said Andrew [Roberts] working with the school governors, the Schools Forum and the other special schools had funded Lyndale School for a number of empty places.

Looking forward, he said that Wirral Council would have to seek authorisation on whether they could do that from a national body called the Education Funding Agency. In his view the future was less certain because the EFA had said that they’d like Wirral Council to come to a point where they were funding per a pupil and not per a place. He said it was a question about the long term financial stability of the school and it wasn’t about making a quick saving by closing the school.

David Armstrong said that they’d been through this process with other primary schools and a secondary school and that the savings had been recycled into the formula. He was happy to take questions.

Phil Ward (chairing the meeting) thanked Mr. Armstrong and said that before they started the opportunity to ask questions and raise issues, he referred to an attendance sheet and asked people who hadn’t signed it to do so. He said, “A lot of people have lots of things to say with conviction and passion and we would ask they allow everybody a chance to speak and put forward to the meeting to hear what’s been said. So on that basis, are there any questions?” After twenty-five minutes (of a two hour consultation meeting) the people present finally got a chance to ask questions.

The first questioner introduced herself and asked if they could get a copy of the notes being taken? Interrupting the questioner before she’d had a chance to finish and talking over her, Phil Ward barked at the questioner in the tone of voice you’d usually reserve for someone who’d stood on your foot, “I’ve answered that one a few times! We’re not taking minutes of the meeting but high level notes and these notes will be used to capture some of the key points raised at the meetings and these notes will also be reported to elected members [councillors] of the Cabinet. They’re not for circulation. Is that clear?”

The same questioner replied with, “but this is a public consultation!”, Phil Ward again interrupted her and said, “It is a public”, she continued, “it should be for everyone”. Phil Ward replied, “I’ve answered that already but the high level notes, we will capture the views, as we have done for the last five meetings and those views, and those views will be reported to members of the Cabinet.”

Councillor Phil Gilchrist asked whether the notes would set out so that they could get a feel of what’s been raised at the consultation meetings? Phil Ward replied, “We can do it in a different way, we can collate all of the notes together and just do a summary report of the key points or alternatively we could choose to do a summary report on each of the individual meetings laying out if you like the issues raised and I think that’s what you’re alluding to in terms of about each meeting the way it seemed to be borne out with these issues, there are those with these issues so we’ll look at that.”

Another question was asked about the notes to which Phil Ward replied, “They’re notes recording the high level points raised at the meetings and importantly we will be reporting them to Cabinet.”

A different questioner stated that he thought the meetings should be fully minuted. He described himself as a support worker that worked full time over three fourteen hour shifts. He referred to previous meetings that people hadn’t turned up to. A meeting at Lyndale School had been arranged and only seven councillors had turned up to it.

He continued and said that despite working full-time, he had found the time to come to the meeting. Continuing, he said he had asked people if they were against the decision to consult on closing Lyndale School and said that a hundred percent of those he had contacted were against closure of Lyndale School. He referred to flaws in the consultation and that there had been “100% disapproval” on “ploughing ahead” when Wirral Council was there to serve the people of Wirral.

Phil Ward replied with, “Is that something which you’d like to submit to us?”. He replied, “Oh, yes” and Phil Ward said, “Just to remind you the consultation finishes on the 25th June.”

Continues at Lyndale School Consultation Meeting: questions about banding, outdoor space and Stanley School (Part 3).

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What happened between Wirral Council and the Education Funding Agency over the minimum funding guarantee?

What happened between Wirral Council and the Education Funding Agency over the minimum funding guarantee?

What happened between Wirral Council and the Education Funding Agency over the minimum funding guarantee?

                         

I’ve received a fuller response from the Education Funding Agency over my Freedom of Information request to the EFA about communications between themselves and Wirral Council over an application for exemption for the minimum funding guarantee (which was later withdrawn). Following the internal review the emails were now include who they were sent from and to and the dates as well as the emails about what happened after and Wirral Council’s withdrawal of their application for an exemption from the minimum funding guarantee requirements.

I see even a civil servant in the Department of Education expressed a similar sort of frustration (but in very a very diplomatic way) to that that the parents of children at Lyndale School had in dealing with Wirral Council officers. Gavin Monument (a civil servant who’s the School Funding Policy Adviser at the Education Funding Agency which is part of the Department of Education) states in an email to a Wirral Council officer dated 17th February 2014 “For some reason we are really struggling to understand your approach at this end and we do want to make sure we get it right when it gets sent to the Minister.”

As the issue of the minimum funding guarantee is connected to the issue of Lyndale School’s future that is currently being consulted on, I’m including the email exchanges below. Some of the statements made in these emails seem to directly contradict what was stated during public meetings by some Wirral Council officers on this matter.

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From: Roberts, Andrew D. [mailto:andrewroberts@wirral.gov.uk]
Sent: 03 January 2014 15:31
To: HOWKINS, Keith [keith.howkins@education.gsi.gov.uk]
Cc: FUNDING, ReformTeam [reformteam.funding@education.gsi.gov.uk]
Subject: RE: 237: Wirral 344 Special SchoFUNDING, ReformTeam ols exemption request

Hello Keith
Thanks for comments. I hadn’t picked up the change in grant conditions, or that protected rates apply only to Special Schools or Special Academies.
Option 3 is a calculation comparing each top-up band at a school with the rate used in 2013-14 (less 1.5%). I think from your comments below this no longer applies.
Option 2 compares the average amount that would be paid to a school using the new top ups and existing pupil data, with the amount that has been paid in 2013-14 (less 1.5%).

Option 1 – No MFG was supported by 4 out of 11 Special Schools
Kilgarth
Foxfield
Elleray Park
Orrets Meadow
Option 2 Average MFG was supported by 2 Special Schools
Claremount
Stanley

Regards
Andrew

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From: keith.howkins@education.gsi.gov.uk [mailto:keith.howkins@education.gsi.gov.uk]
Sent: 30 December 2013 15:24
To: Roberts, Andrew D. [mailto:andrewroberts@wirral.gov.uk]
Cc: FUNDING, ReformTeam [reformteam.funding@education.gsi.gov.uk]
Subject: RE: 237: Wirral 344 Special Schools exemption request

Andrew – thanks for sending this through.

Could you explain more about the difference between options 2 and 3 please, and send through details on which option each special school supported?

We appreciate that there was some confusion over the exact wording of the protection requirements. What we said originally about these applying to each top-up rate was incorrect; the correct wording is what you have quoted below and applies to the overall budget if the number and overall type of places remained the same. I’m not sure if this changes anything you have sent.

As a point of information, the protection arrangements in the conditions of grant only apply to special schools and academies. There is no protection requirement for special units or AP, so you do not need any approval for proposals in relation to these.

Keith

Keith Howkins

Team Leader, Funding Reform Team

Maintained Schools Division

Education Funding Agency

Department for Education

2 St Paul’s Place

Sheffield. S1 2FJ

=======================================================================================================
From: Roberts, Andrew D. [mailto:andrewroberts@wirral.gov.uk]
Sent: 12 December 2013 12:35
To: FUNDING, ReformTeam [mailto:reformteam.funding@education.gsi.gov.uk]
Subject: 237: Wirral 344 Special Schools exemption request

This letter is requesting exemption from the requirement for an SEN MFG included within the 2014 – 2015 DSG additional conditions of grant. Paragraph g “In deciding on top up funding rates for the pupils it will place in special schools …. and the total number and type of places received the same in the 2 financial years the school or Academy budget would receive by no more than 1.5% in cash between 2013 – 2014 and 2014 – 2015.”

Over the past 12 months a Schools Forum SEN finance group has met to develop proposals for high needs funding and particularly to agree a banded approach for specialist SEN provision.

A banded system (with 5 bands) was developed taking account of a number of issues:

· The need for stability
· The fluctuation arising from part year places and the need to have places available.
· To take account of the increasing demands and population with social communication needs and to recognise the resource intensive nature of provision for children with profound and multiple learning difficulties.

These 5 bands have also been applied to SEN resourced base provision in mainstream schools and academies. The bands used take account of the same needs identified within Wirral’s 11 special schools and in addition gives an equivalent level of funding for each child.

Changes of this nature will result in movement of resources and a number of schools will as a result receive more funding and others will receive less. However proposals include a contingency fund to financially support any specialist provision that may experience financial difficulties.

The SEN top up proposals were subject to a full consultation with all schools and providers in Wirral, commencing on 3rd July and closing on 18th October. The consultation papers included an illustration for each school of the funding a school might receive using current numbers and numbers at capacity, compared with the level of funding provided in 2013 – 2014. In addition there has been a series of meetings with schools to discuss the changes suggested.

24 responses were received including 10 out of 11 special schools and 6 out of 14 school SEN resource bases. Overall the responses were supportive and in favour of the local authority’s proposals.

Since the consultation was launched schools were asked a supplementary question about views on seeking an exemption from the requirement for an SEN MFG. This approach has been adopted because the MFG will not work with the new top up bands. Without capping the MFG costs an additional £800,000 which would be unaffordable, whilst capping would defer the introduction of the new top-up structure.

Schools were asked for their preferences based on a table illustrating:

No MFG (7)
An Average MFG (phased over 3 years) (5)
A full MFG (0)
The responses are shown in brackets above.

This issue was discussed at the Schools Forum meeting on 13th November 2013. The recommendation from the forum was “That Forum supports an application to the EFA for an exemption from the requirement to use an MFG (Option 1) on Top Ups for 2014 – 2015, and failing that Forum request the EFA agree the use of an average MFG (Option 2)”

A number of papers are attached to this e-mail including:

School Forum Agenda from 13 November 2013:
– Element 3 Top up funding arrangements for pupils with high needs (SEN) and for pupils attending Alternative Provision. (This report includes the consultation paper and letter to schools about the MFG)
– An extract from the Schools Forum minutes

Please let me know if you would like further details.

I look forward to hearing from you

Yours sincerely

Andrew Roberts
Senior Manager – School Funding & Resources
Children and Young People’s Department
Wirral Council
Tel: 0151 666 4249
Fax: 0151 666 4338
andrewroberts@wirral.gov.uk

Visit our website: www.wirral.gov.uk

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From: Roberts, Andrew D. [mailto:andrewroberts@wirral.gov.uk]
Sent: 14 March 2014 10:52
To: MONUMENT, Gavin [mailto:gavin.mounment@education.gsi.gov.uk]
Subject: RE: Wirral 344 Special Schools exemption request- additional information

Hello Gavin
Further to our meting I am writing to confirm the withdrawal of Wirral’s application for an MFG exemption for High Needs. The clarification provided by the EFA indicates the additional cost for Maintained Special Schools be be in the region of £80,000, which is affordable within the High Needs Budget. It is the intention to make the same offer available to Resourced Base provision in Primary, Secondary schools and academies, although this may be for one year only.
Thanks you for your advice.
Regards
Andrew

=======================================================================================================
From: gavin.mounment@education.gsi.gov.uk [mailto:gavin.mounment@education.gsi.gov.uk]
Sent: 17 February 2014 14:09
To: Roberts, Andrew D. [mailto:andrewroberts@wirral.gov.uk]
Subject: RE: Wirral 344 Special Schools exemption request- additional information

Hi Andrew,

Sorry for the delay in coming back to you on this. I thought Keith had ruled out your original option 3 – which compared each top-up band at a school with the rate used in 13-14 – as the conditions of grant confirmed the protection applies to the overall budget level. So I thought we were down to options 1 and 2

For some reason we are really struggling to understand your approach at this end and we do want to make sure we get it right when it gets sent to the Minister. I’m due to be over in the North West later in the week and I’m wondering if the simplest solution would be to pop across for a chat and see if we can clear this up face-to-face rather than via e-mail. It probably won’t take very long to do and be less frustrating to you guys who have worked all this through whilst I’ve got a mental block on it. Would this sound a good idea? I can do Wednesday afternoon or any time on Thursday if this would work for you.

Thanks

Gavin.

Gavin Monument
School Funding Policy Adviser
Maintained Schools Division

Mowden Hall
Staindrop Road
Darlington
Tel: 01325 735842
Mob: 07824 895783

www.education.gov.uk

=======================================================================================================
From: Roberts, Andrew D. [mailto:andrewroberts@wirral.gov.uk]
Sent: 20 January 2014 13:05
To: MONUMENT, Gavin [mailto:gavin.mounment@education.gsi.gov.uk]
Subject: RE: Wirral 344 Special Schools exemption request- additional information

Hello Gavin
Keith indicated that Option 1 is not correct – the MFG applies to the overall budget (ie I think this means average values and Option 2).Similarly the calculation is only required for Special Schools not Resourced Bases (so is a lesser requirement)The request is for no MFG, but if we need to have one then it should be Option 2.
Is there any idea on timescales?
Thanks
Andrew
=======================================================================================================
From: gavin.mounment@education.gsi.gov.uk [mailto:gavin.mounment@education.gsi.gov.uk]
Sent: 14 January 2014 11:29
To: Roberts, Andrew D.
Subject: RE: Wirral 344 Special Schools exemption request- additional information

Thanks Andrew,

That’s been really helpful as I’ve been able to track through the calculations for the options. Can I check my understanding though, just to make sure we’ve captured your request correctly.

Your preference is to run with option 1, which uses the banding system for the schools, but creates a much larger MFG requirement. So, you are requesting an MFG exclusion to be able to move straight to the new banding system. If this is not approved you would move to option 2, which uses an average rate for each school as this creates a much lower MFG requirement. Are you also asking for an MFG exclusion for option 2, or will you run with this option including the MFG impact?

Many thanks

Gavin.

Gavin Monument
School Funding Policy Adviser
Maintained Schools Division

Mowden Hall
Staindrop Road
Darlington
Tel: 01325 735842
Mob: 07824 895783

www.education.gov.uk

=======================================================================================================
From: Roberts, Andrew D. [mailto:andrewroberts@wirral.gov.uk]
Sent: 08 January 2014 17:59
To: FUNDING, ReformTeam [mailto:reformteam.funding@education.gsi.gov.uk]
Cc: MONUMENT, Gavin [mailto:gavin.mounment@education.gsi.gov.uk]
Subject: Wirral 344 Special Schools exemption request- additional information

Hello Gavin
The attached is a summary of the MFG calculation. The end column shows the MFG for each school. The average band rate shown is a weighted band average for each school which is then compared with the MFG rate.
Pupil numbers used are:
Elleray and Stanley 90
Lyndale 25
Observatory 45

Andrew Roberts
Senior Manager – School Funding & Resources
Children and Young People’s Department
Wirral Council
Tel: 0151 666 4249
Fax: 0151 666 4338
andrewroberts@wirral.gov.uk

Visit our website: www.wirral.gov.uk

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3 reasons why Wirral Council got budget projections on Lyndale School so very wrong

3 reasons why Wirral Council got budget projections on Lyndale School so very wrong

3 reasons why Wirral Council got budget projections on Lyndale School so very wrong

                         

Labour councillors at a public meeting of Wirral Council's Coordinating Committee vote to consult on closing Lyndale School (27th February 2014)

Labour councillors at a public meeting of Wirral Council’s Coordinating Committee vote to consult on closing Lyndale School (27th February 2014)

Reason 1: An assumption was made about the minimum funding guarantee

As covered in an earlier blog post, Wirral Council applied to the Education Funding Agency for permission that the minimum funding guarantee requirement that Lyndale School in 2014-15 (minimum funding requirement means it would receive at least 98.5% of the funding it got in 2013-14 when Lyndale School’s budget was £761,733) wouldn’t apply.

You can read Wirral’s application here in response to my Freedom of Information Act request to the Education Funding Agency.

The report to Cabinet uses a figure of a deficit of £72,000 for 2014-15 (see the fourth paragraph of 2.8) which is 9% of Lyndale School’s budget. However Wirral withdrew their application for an exemption from the minimum funding guarantee before the call in meeting.

As this blog post details at the end thanks to the minimum funding guarantee Lyndale now project a small surplus in 2014-15 and the cumulative deficit at the end of 2015 is only projected to be £18,000 rather than the £72,000 figure used in the January Cabinet report.

Reason 2: A prediction about Lyndale’s budget in an unspecified future year

In the same Cabinet report a deficit for Lyndale School’s budget is predicted in an unspecified future year of £160,000 (representing £10,000 for each of the sixteen spare places it has) (see the fourth paragraph of 2.8). This is added to the projected £72,000 deficit to make £232,000. Reason 1 goes into detail as to why the £72,000 figure is wrong.

However the £160,000 figure is wrong (in my opinion) too and here is why. As specified in Wirral Council’s application for an exemption from the minimum funding guarantee, the minimum funding guarantee is a condition of the Dedicated Schools Grant that Wirral Council receive each year from the government for education. The minimum funding guarantee is also a legal requirement.

The full wording of that condition of the 2014-15 schools grant for Wirral Council is only partially quoted in their application for an exemption from the minimum funding guarantee. However it can be found in this document Dedicated schools grant (Departmental guide for local authorities on the operation of the grant 2014-2015) (page 6) and is quoted here:-

Determination of the local funding formula and funding for high needs pupils

“11. The following conditions apply in relation to the determination of the local funding formula and the funding for high needs pupils:

…….

g. in deciding on top-up funding rates for the pupils it will place in special schools maintained by the Authority and Special Academies formerly maintained by the authority, the authority must ensure that the rates for each school are set no lower than at such a rate or rates that, if all the pupils in the school or Academy were placed by the authority, and the total number and type of places remained the same in the two financial years, the school or Academy’s budget would reduce by no more than 1.5% in cash between 2013 to 2014 and 2014-15;”

This reference to a £160,000 deficit can however be read as a reference to Lyndale School’s budget for 2015-16. The government is currently running a consultation on schools funding (which ends on 30th April 2014) called Fairer Schools Funding 2015-16. One of the consultation documents as part of the consultation has this to state on the minimum funding guarantee.

“We will retain the Minimum Funding Guarantee, which has been in place over many years and which dictates that for the vast majority of schools, funding per pupil cannot drop by more than 1.5% per year*”

“*Some funding is excluded from the calculation of the Minimum Funding Guarantee. Details of this are in 2014-15 Revenue Funding Arrangements: Operational Information for Local Authorities.

The latter document specifies a number of exclusions to the Minimum Funding Guarantee, which don’t apply to Lyndale School. Although the government has committed to a minimum funding guarantee for 2015/16 it hasn’t specified what level it will be at as this is dependant on a spending review that has yet to take place. However using Lyndale’s 2013-14 budget as a guide (£761,733), £160,000 represents a massive drop of 21%.

2015 is a General Election year, do you think the government would really set the minimum funding guarantee for 2015-16 low enough to cause the kind of huge deficit that would lead to many schools across the country closing in the months leading to a General Election? Personally I don’t think it would.

3. But what about “Place plus”?

The rationale behind the £160,000 mentioned in reason 2 was that for each place Wirral Council receives £10,000. Lyndale School at the time of writing the Cabinet report had sixteen empty places (16 * £10,000), therefore if the funding Wirral Council receives is based on pupils at Lyndale rather than places Lyndale would lose out due to the empty places.

As mentioned earlier, the minimum funding guarantee doesn’t make this an issue in 2014-15. The way the minimum funding guarantee is calculated for 2014-15 for a special school doesn’t take account of the numbers of pupils or empty places at a school. As the legislation on how to calculate the minimum funding guarantee for 2014-15 quite clearly states:

“references to the number of pupils exclude those funded by a sixth form grant and those in places which the local authority have reserved for children with special educational needs;”

As referred to at the end of reason 2, it’s a General Election year next year, will the government really change how the minimum funding guarantee for special schools is calculated for 2015-16 from a formula based on the total budget of the school to a pupil based formula causing some special schools to close in the lead up to the General Election? I haven’t got a crystal ball, but I doubt they would. Even if the funding formula changes to a more pupil based funding, the minimum funding guarantee for 2015-16 (at whatever level it is set at) should protect schools like Lyndale School from large changes to their budget.

So what do you think? Have I got something wrong? If there is no financial reason to close down Lyndale what’s the real reason? I’d be delighted to read your opinion and you can have your say (even anonymously) by leaving a comment.

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What did officers say at the Lyndale School call in? “we had a problem the rules mattered more than the children”

What did officers say at the Lyndale School call in? “we had a problem the rules mattered more than the children”

What did officers say at the Lyndale School call in? “we had a problem the rules mattered more than the children”

                                      

Councillor Moira McLaughlin asks a question about staffing at Lyndale School (Coordinating Committee, Wirral Council, 27th February 2014)
Councillor Moira McLaughlin asks a question about staffing at Lyndale School (Coordinating Committee, Wirral Council, 27th February 2014)

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Julia Hassall (Director of Children Services), Andrew Roberts (Head of Branch and Planning Resources) and David Armstrong (Assistant Chief Executive) answer questions from councillors on the Lyndale School closure consultation decision

Continuing from yesterday’s transcript of the Cabinet decision to consult on closing Lyndale School is a transcript of the first twenty-five minutes of what officers said at the Coordinating Committee meeting of the 27th February 2014 that was to reconsider the Cabinet decision. Next week Wirral Council plan to start the consultation on the closure of Lyndale School. The Cabinet report titled “Report seeking approval to consult on the closure of Lyndale School” that this is about can be read on Wirral Council’s website.

CLLR STEVE FOULKES
Back to order. Settle down, I have a rather unfortunate announcement to make. One of our elected Members Councillor Denise Realey has become unwell. I think she’s found the evening stressful as everybody has to be frankly honest and has taken unwell so for the minutes can we have it recorded that Councillor Realey has left the meeting and will take no further part in the decision-making.

OK, with that said, we now move onto the next set of witnesses, these are evidence from the people obviously officers of the Authority. Julia Hassall (Director of Children’s Services), David Armstrong who is Assistant Chief Executive and Head of Universal Infrastructure Services and Andrew Roberts who is Head of Branch and Planning Resources.

They have up to five minutes to speak to us, for brevity they are not taking that option and will probably be spending more time answering questions from elected Members but Julia, you want to give us the background and the thought processes that ended up in the presentation of the papers to Cabinet and the consequent decision. Thank you.

JULIA HASSALL
OK, thank you Chair and members of the audience. I just wanted to start by saying from a senior officer perspective how much I appreciated hearing what the parents and members of staff said this evening.

I think following that what the three of us will say will sound a bit bureaucratic, a bit clinical and it’s by virtue of the proposals that we need to put forward. I would like to state that all three of us come from a position of valuing the children that we work with and regarding outcomes for children as an absolute priority.

The report that was presented to Cabinet on the 16th January, was seeking approval to consult on the closure of the Lyndale School. The report set out the background, saying that local authorities have a statutory duty to make sure there are sufficient places in their area, there’s fair access to educational opportunity to promote every child’s potential.

The reasons why in the report we’re considering closure of the school is because of the viability of the school is compromised because of its small size and falling roll which both contribute to a difficult financial position and I think as you said Chair earlier, it’s not in any way because of the standard of care and education in the school which is good and in many aspects outstanding.

In terms of the falling roll over the last seven years, the Lyndale School’s average occupancy has been 59% and there are currently twenty-three children at the school out of a total possible forty places. I know the second report that you’re considering call in really focuses on the financial position which is very briefly the size of the school and the numbers of pupils contribute to a difficult financial position with a likely deficit of £72,000 corrective action for 14/15 with the potential for this to increase to be in excess of £232,000 based on the numbers of children currently on the school roll. Part of that is because of changes to the national formula, which Councillor Smith referred to in terms of funding individual places occupied and a reduction from forty funded places to twenty-three because there are twenty-three children with places and also applying the new banded top up system.

Should a decision be taken to close and this would be in the future. I need to keep emphasising that the report that went to Cabinet on the 16th January was seeking permission to consult on potential closure and the report on the 16th January said that at this stage, the two most, the most viable option if or should the school close, was to expand Elleray Park School and Stanley schools so that the children currently at Lyndale School and future children would go to both of those schools.

It certainly would simply not be a case of just adding children into the existing schools. It would require very, very careful planning, consultation and change the very nature of each school by virtue of additional children joining that school, both school’s community.

It’s really important to say that in the most recent OFSTED report Elleray Park School was judged to be outstanding across the board and Stanley School was judged to be a good school with outstanding leadership and management.

One thing I did want to say and in response to possibly some of the points made earlier, it’s really important to state at this stage that the closure of the school appears the most viable option after having considered a number of options which are the eight options that parents referred to. However I have said and I’m very mindful of the fact that the eight options have been considered by local authority officers and I would expect to proceed to consultation that each of those options would be rigorously considered again and there will be other options that come forward that we have not thought of.

So in very general there will be a proper options appraisal looking at each and every option that comes forward. Should Cabinet, the report that went on the 16th actually talked about the next steps. So, should Cabinet agree to consult on whether we should close the school, there would then follow a twelve week consultation process that will involve full consultation meetings, a consultation meeting with the parents, teachers, interested people connected with Lyndale School, Stanley School and Elleray Park School. There would be drop in sessions. We’d do whatever we needed to do to get to the best possible option to move forward.

I think in summary, I would want to conclude just by describing the report that went on the 16th January that by saying considering the closure of the school is difficult and distressing as you’ve heard this evening particularly when children have such special needs and other abilities. It’s really important that their needs are placed at the centre of our concern and that what’s called the special educational needs improvement test is applied with absolute rigour and that’s a test to make sure that whatever we come up with and whatever Cabinet may agree in the future, is as good as or better than the current provision for the children concerned and it was on that basis, taking all those points into account that I recommended to Cabinet on the 16th January that they should agree to consult on closure and that I would proceeded to compile the consultation document. I’m very happy to answer any questions that Members may have or any comments.

COUNCILLOR STEVE FOULKES
Any of the other officers wish to make a statement about the issue? No?

DAVID ARMSTRONG
No.

ANDREW ROBERTS
No.

COUNCILLOR STEVE FOULKES
No, ok. So, it’s clearly open to. Sorry I’ll use my mike I do apologise. It’s obviously open to questions from Members, I’ve got Moira, Leah and Alan and then I’ll take another three.

COUNCILLOR MOIRA MCLAUGHLIN
If it’s alright with you Chair, I’ll combine two of my questions in one go and make it a bit simpler. The first one is, is there capacity for forty children and there’s twenty-three there currently? Has that reduction so far, I mean I don’t quite know how to put this, Steve did allude to it before, if there’s fewer children there I imagine the establishment was reduced to accommodate the children or has the establishment, the staffing establishment I’m talking about not changed even though the numbers have reduced?

ANDREW ROBERTS
What err the staffing establishment reduced I think it was two years ago the funded places reduced from forty-five to forty.

COUNCILLOR MOIRA MCLAUGHLIN
Right, and over a period of time the numbers have reduced further what would happen then as there’s attrition, what would happen? How would that be dealt with?

ANDREW ROBERTS
That’s part of our ongoing discussion with the school and about how the budget issues have been, are dealt with.

COUNCILLOR MOIRA MCLAUGHLIN
OK, thank you very much. That’s the first one. The second one is I mean a couple of questions I asked about from Zoe and Rochelle were about confidence in the process at this point. I think, certainly I was dismayed to see the phrase in this report which was consultation on closure and it seemed to me in the first instance that it kind of preempts the outcome and I have been reassured by the Cabinet Member so far, well I’ve heard what the Cabinet Member said, I’m looking for more reassurance that this is a genuine open consultation and that options that are there, eight of them will be considered and the possibility is still there that other options that haven’t been considered to this point may emerge during the process. There’s those and I mean if you can reassure me of or do your best to reassure me that what the second part is how are you going to reassure parents now because they’ve lost a bit of confidence, well lost a lot of confidence in the process?

JULIA HASSALL
OK, by way of reassurance that we will have a very full and open and transparent consultation. I’ll just take a step back, take a step back. The advice I sought prior to embarking on this process was the local authority in these circumstances when we were considering the viability of the school would put forward a proposal to consult on closure. That is what is done, that is how it’s approached.

The intention is to consider every single option, that’s a that’s in the appendix and the eight options that are included there. When I met with the parents prior to Christmas, in a pre consultation meeting I was explaining how we reached a conclusion with a purely internal local authority looking at a number of options which was about us reaching first base to present a report to Cabinet saying that we needed to consult.

The consultation will take account of each and every one of those options, which we will undertake to revisit again and we will genuinely consider every single option that appears that we may not have considered so far.

COUNCILLOR STEVE FOULKES
OK, I did say I’ve got Leah and Alan. I think those two are … ok, sorry.

DAVID ARMSTRONG
Chair, just to add to that. Just for the benefit of the audience, I’m David Armstrong and Andrew Roberts is sitting to my left.

Just for the benefit of Members, I currently have some duties outside of the department particularly to do with assets and supporting the Chief Exec. I’m here as the Head of Service for the Children’s Department, clearly I have a responsibility about the school budgets and assets and other issues and obviously I have worked here for twenty-four years and know quite a bit about the school from that so clearly that’s why I’m here.

I think that the comments about the language are very fair and people have said the same thing to us when we did the five-year primary review because we have to follow national documentation and national procedures. If we used sort of a more informal process to begin with, a more informal language and then we changed to a very formal process part way through, people with some justification say well you did that to smoke and mirrors, ..ful language whatever.

The language is very cold. The only thing I can say to people is, that clearly if you look at the track record of when we did a very, very lengthy repetitive process of the primary review we brought forward proposals like this and we named the schools for closure and if you look at what we proposed over that period and if you look at the primary school landscape now, the two don’t match because sometimes our proposals were accepted after the consultation period, sometimes we were told to go away and start again and indeed there’s some schools I can think of one school where we proposed closure twice in two successive cycles and the school is still there and functioning normally so I hope, I know it’s difficult for people to believe us, I know the language is very cold but I think the proof is there that the process did work. There was consultation and the outcome was not predetermined. The outcomes were many and varied, at the end of the day we went from a hundred schools to ninety but it was a very different ten schools to the ones that were proposed unfortunately.

COUNCILLOR STEVE FOULKES
We’ve got Alan and then Leah.

COUNCILLOR ALAN BRIGHOUSE
Thank you for that, thanks Chair. The sort of sustainability of err Lyndale School has been in question for some time as I think we’ve heard tonight. Am I right and I accept what the Chair says, I don’t want to stray into the next part of the call in but is it the change in the Education Funding Agency’s funding arrangements that has actually prompted us into now looking at the school and looking at its viability or would we have done it anyway?

DAVID ARMSTRONG
I think it’s a key issue within the debate. If you take a very brief view. Local management of schools began in 1990, when massively big Council budgets were broken up and delegated to schools quite rightly and power was given to schools to spend that money and clearly I was here when that started.

The primary and secondary debate puts the money through a formula into the schools and what’s happened over the years when we first started we had hundreds of funding factors so some of those, because we didn’t, had a factor that if you had trees on the site you got more money through the formula or if you had a bigger, we had one for a long time where if you had a bigger building you got more money.

What’s happened in primary and secondary mainstream is that the whole thing over the twenty odd years has been streamlined down and streamlined down and streamlined down. You now have a very few factors which are reliant upon deprivation, but primarily pupil numbers.

If you’ve got somebody sitting on the seat you get the money, if you haven’t got somebody sitting on the seat you don’t and there’s a check mechanism the minimum funding guarantee but that’s the hard reality. What’s happened for many years is the special schools sat alongside that, they have a defined budget, a fixed budget but you were allowed to carry on funding by place rather than pupil but what’s happened is as local … of schools has been achieved and it’s not a criticism of the system, it’s where it was always going to end up over a long journey over twenty-five years.

The national changes bring the special sector into line, not quite the same, but they bring them into line with the primary and secondary situation hence this talk of place plus. So for the first time, we cannot fund all of it on the place we have to fund a substantial part of it on the pupil and what I’m doing and Mike and others are is that through the work of the secondary and special heads which is a tight-knit family of eleven, through Pat’s work, through Andrew’s work that family as a group for some time now that they will fund not … they’ll fund forty places even though there are twenty-three children there.

Clearly they do that at the expense of money that would otherwise go through the formula, go through .. with the schools and what we’re nervous of is is that a sustainable long-term position?

We’re also nervous that we’ve been able to decide that locally. Andrew’s been able to take reports to the Schools Forum, Pat’s been able to meet with the other heads, Andrew’s met with the heads, met with the governors and it’s all been ok. From next year we will have to seek an approval from the Education Funding Agency to fund those places. That made Andrew and I deeply nervous because we’ve had some experience of the national Educational Funding Agency where it appeared that when we had a problem the rules mattered more than the children.

We were heartened to meet with the EFA with local officers this week who said that he thought they would be mindful it was the power of, they would agree to but what we see is a local arrangement that we think would be some sort of dereliction of our duties if we didn’t say we don’t think that this is sustainable long-term and we have a changing national picture which for all the right reasons as I’ve … to us is changing that landscape and taking away some of the freedoms we’ve got. So in that context, yes it is a key issue.

COUNCILLOR ALAN BRIGHOUSE
Could I just do a … just to pick up on that the I fully appreciate the direction of travel and where we’re going but ultimately I would like to think that we’re making this decision because we’ve looked at it and we’ve decided that this is because ultimately we are responsible for public funds, that this is the right thing to do. Almost regardless of what the funding arrangements are suggesting because when I read the report it looks as though it’s all driven by the funding arrangements and not by the err by the, I will get to, my question is this.

COUNCILLOR STEVE FOULKES
You’re clearly straying into the next call in.

COUNCILLOR ALAN BRIGHOUSE
I know I am straying into the next call in, but I just it was because of I do think at the end it’s fundamental to the whole process. I just, what I really wanted, my question is this. Lyndale School is something special, we’ve heard that tonight. Would we as a Council put a price on that specialness?

(applause)

DAVID ARMSTRONG
I agree with you entirely that it’s very special. I came here in 1990 after being a primary school head and I remember going to the Clatterbridge site. I in fact did the bid in my youth to move them from Clatterbridge, the bid that brought in the grant to move the school from Clatterbridge to Lyndale.

I worked through the scheme that amalgamated ??? Juniors to release the site. So yeah it is a very special school but this is where we have a very difficult job to do. Do we just sit on our hands and say nothing and know an informal arrangement that has worked well for a few years, hasn’t got the resilience to carry on or do we come to you and do we say to the Director actually the landscape’s changing nationally, the numbers aren’t rising, we’re funding this place with empty places currently other schools are compliant with that but it’s a tight-knit family of heads that hasn’t had a lot of change. We have to put the issue on the table and say this is where it is. It’s nothing to do with the specialness of the school, the school is a very special place and we’ve all played a part in our little way, a very little way compared to what you’ve heard tonight in making it what it is.

(heckling)

COUNCILLOR STEVE FOULKES
Can I bring Leah in?

(heckling)

COUNCILLOR STEVE FOULKES
Sorry I’m bring Leah Fraser in ok, thank you.

COUNCILLOR LEAH FRASER
Thank you I’ve got two questions to Julia Hassall and two for David Armstrong. I don’t mind who answers them. Is that ok to ask all four? Right well I’ll ask them one by one.

I’m asking Julia this but as I say I don’t mind who answers it. I asked Andrew to send me some information via email as you know and that information was the complex learning need pupil numbers between 2004 and 2013 for five schools, Foxfield, Meadowside, Elleray Park, Lyndale and Stanley. Now, going through them in this order, I’m not going to go into a lot of detail, I’m just taking them one at a time.

Foxfield in 2004 had a hundred and twenty-seven and last year had a hundred and twenty-four. So they’ve stayed relatively the same. Meadowside seventy-eight, seventy-two, I’ll skip to Stanley eighty-eight ten years later eighty-nine. Elleray Park fifty in 2004, last year they had ninety-one so they’ve almost doubled by fifty percent. Lyndale was forty in 2004 and now it’s twenty-four so basically Lyndale’s halved and Elleray Park’s doubled.

Now also looking at these feel that this errm chart, each school takes children with PMLD so why when numbers are going down in Lyndale have children with PMLD been sent to say Elleray Park? Hasn’t somebody been keeping an eye on this, because it then from what Emma Howlett, was it Emma? Yeah I think it was Emma said that it’s the Council’s statement and it’s the Council that refer to where a child goes to school. So why have the Council allowed the numbers at Lyndale to halve over ten years? That’s my first question.

COUNCILLOR STEVE FOULKES
OK.

JULIA HASSALL
OK, Councillor Fraser, I’ll start but colleagues may want to come into that. The reason why numbers are what they are or changed over a period of time is parental choice.

(heckling)

So I’ve really looked into the issue that parents have raised with me that there’s been a subtext of diverting parents from one school to another and I’ve asked colleagues, I’ve researched how the statementing process works and the response I’ve received and I’ve looked at our admissions booklets and there is a very clear process set out and over a period of time these are choices that parents have made as part of the overall statementing process.

At this point in time, there are as you know three primary schools for children with complex learning difficulties, Stanley, Elleray Park and Lyndale. About a year ago an HMI (Her Majesty’s Inspector) was commissioned by the local authority to look at where the children with profound and multiple learning difficulties were being educated and they looked at the children who are being, there are some children with PMLD that are educated at Elleray Park School and with the larger number of children at the Lyndale School and they formed a view that individual Eric Craven formed a view that both settings could appropriately care for children with profound and multiple learning difficulties.

Stanley School has focused more on children on the autistic spectrum and currently don’t have children with profound and multiple learning difficulty but the view was both Elleray Park at that point and Lyndale could care for children with profound and complex needs and it was parents making choices about where there, which school their child attended.

COUNCILLOR LEAH FRASER
Thanks for that, just to follow up from that, Emma did say that she was only offered one school and there wasn’t a ??? . So you can’t chose something if you don’t know about it. If you’re not told about a school, you can’t actually choose it.

(applause)

COUNCILLOR LEAH FRASER
My second question..

JULIA HASSALL
Errm, Councillor Fraser, just

COUNCILLOR LEAH FRASER
Oh right sorry.

JULIA HASSALL
Sorry, just very briefly on that the three….

Continues at What did officers say about Lyndale School in reply to “how much money you would expect to get if you sold that land?”.

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