Guidance

Dedicated schools grant: technical note 2019 to 2020

Updated 16 July 2020

This guidance was withdrawn on

This has been withdrawn as it is out of date.

Please see the latest information on DSG in our pre-16 schools funding collection.

Applies to England

© Crown copyright 2020

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This publication is available at https://www.gov.uk/government/publications/dedicated-schools-grant-dsg-2019-to-2020/dedicated-schools-grant-technical-note-2019-to-2020

1. Introduction

This technical note sets out details of the calculation of dedicated schools grant (DSG) allocations for 2019 to 2020.

The DSG allocations for 2019 to 2020 comprise four blocks:

We have published a table setting out the 2019 to 2020 DSG allocations for each local authority. This table shows the DSG prior to academies’ recoupment from the schools block.

2. Calculating 2019 to 2020 DSG

Information on the pupil numbers used for the schools block, CSSB, high needs basic entitlement, and early years block can be found in the pupil number tool published alongside this note.

Each unit of funding is rounded to the nearest penny.

Final DSG allocations are rounded to the nearest £1,000.

2.1 Schools block

The PUF and SUF for each local authority are multiplied by:

  • PUF from the October 2018 school census; the number of pupils in reception to year group 6 plus pupils aged 4 to 10 not assigned to a year group
  • SUF from the October 2018 school census; the number of pupils in year groups 7 to 11, plus pupils aged 11 to 15, not assigned to a year group

Pupils in special units and resource provision are included in the pupil counts above. We count reception pupils as one full time equivalent (FTE) irrespective of the hours they attend. We will not apply a reception uplift to the pupil numbers.

We then add:

2.2 Arrangements for academies recoupment 2019 to 2020

We will calculate amounts for recoupment using data provided on the authority proforma tool (APT) submitted in January 2019. The basic method for calculating recoupment will be to take the individual schools budget (ISB) share shown in the APT. We will provide details of the proposed recoupment amount, including relevant calculations, to local authorities by the end of April 2019. We will publish and issue detailed guidance to all recoupment contacts in January 2019.

3. Central school services block (CSSB)

For each local authority, we multiply the CSSB units of funding by the number of pupils recorded in the October 2018 school census in reception to year group 11, and those aged 4 to 15, not assigned to a year group. We have added the resulting allocation to the actual funding for historic commitments published in the NFF summary table.

4. High needs block

The high needs funding block is a single block for local authorities’ pupils and students aged 0 to 24, with high needs. The block includes funding for pre-16 and post-16 places in:

  • maintained mainstream schools (pre-16 places in special units and resourced provision, and post-16 high needs places)
  • maintained special schools (pre-16, and post-16 places)
  • pupil referral units (PRUs) (pre-16 places only)
  • mainstream academies and free schools (pre-16 places in special units and resourced provision, and post-16 high needs places)
  • special academies and special free schools (pre-16, and post-16 places)
  • alternative provision (AP) academies (pre-16 places only)
  • further education (FE) institutions and independent learning providers (ILP) (previously known as commercial and charitable providers) (post-16 places only)
  • AP free schools (pre-16 places, excluding those at schools opened during the 2018 to 2019 or 2019 to 2020 academic years)

The high needs block includes top-up funding for pupils and students occupying the places in institution types listed above. It also includes top-up funding for pupils and students in special post-16 institutions, and non-maintained special schools (NMSS); and all funding for children and young people placed in independent schools, independent AP (unless the places are commissioned directly by schools) and hospital education (including hospital education for individual young people being educated in independent providers). It also includes funding for central high needs services and budgets.

4.1 High needs block allocations

We have updated the allocations for the basic entitlement element of the high needs NFF to use pupil number data from the October 2018 school census.

In addition, we have also made an allocation to local authorities of £125 million on the basis of Office of National Statistics’ projections of the 2 to18 aged population for mid-2019 in each local authority.

4.2 Import and export adjustments

The allocations announced in July 2018 included import and export adjustments to reflect where high needs pupils and students are educated, as explained in the high needs technical note.

As part of the import and export adjustment, we treat pupils attending NMSS and special post-16 institutions (SPIs) as exports to ESFA, to reflect that funding for these institutions is allocated directly by ESFA. ESFA will continue to directly fund NMSS and SPI places in line with the principles outlined in the 2019 to 2020 high needs operational guide.

In Spring 2019, we will update the import and export adjustments to reflect the latest data from the January 2019 school census and the R06 of the 2018 to 2019 ILR, which will include the exports to ESFA for NMSSs and SPIs.

4.3 High needs place funding deductions

The high needs deductions section of the DSG allocations table shows the place funding deductions for the final 5 months of academic year 2018 to 2019 for places directly paid for by ESFA to institutions (the final 4 months for post-16 institutions). These numbers have also been used to give provisional deductions for the first 7 months of academic year 2019 to 2020 (the first 8 months for post-16 institutions). In March 2019, we will update both sets of deductions to reflect further academy conversions. We will also update the deductions for academic year 2019 to 2020 to reflect the outcome of the 2019 to 2020 place change notifications process.

As set out in the 2019 to 2020 high needs operational guide, starting in August 2019, funding for post-16 places in maintained schools (including maintained special schools) and pupil referral units (PRUs) will remain in the DSG paid to local authorities, rather than being deducted from local authorities’ DSG allocations.

Special units and resourced provision are funded on the places reported and agreed through the place change notification process, not on the number of pupils reported on the 2019 to 2020 APT. The pupil data from the APT is only used to identify whether places are occupied by pupils on the school roll funded at £6,000, or funded at £10,000 otherwise.

We are aware that some institutions in different local authorities are merging on an ongoing basis. Where institutions have merged, we will account for this when we make place funding deductions from local authorities from 1 April 2019. In instances where local authorities see an increase in place funding deductions as a result of a merger, the import and export adjustment will normally compensate that local authority for the extra deductions. There may be cases where there is a significant mismatch between the data driving the import and export adjustments and the required deductions, caused by the structural merger rather than a planned change in the number of places, or where the timing of the merger and data collection creates difficulties. ESFA will consider such issues and difficulties on a case by case basis.

Where an institution merger occurs after February 2019, we expect that place funding deductions will continue to be made from local authorities on the basis that the institutions remain unmerged for financial year 2019 to 2020. This is because the merger will not have been reflected in the import and export adjustment.

4.4 Free schools with high needs places

We fund high needs places in mainstream free schools (in special units, resourced provision or sixth forms) on the same basis as places in a mainstream academy, with deductions made from the local authority in which the free school is located.

As set out in the 2019 to 2020 high needs operational guide from 2019 to 2020 onwards, funding for special free school places will be included in local authorities’ high needs allocations. Funding for these places will be deducted from local authorities’ high needs allocations by ESFA, and paid directly to schools, in the same way as for special academies.

ESFA directly funds places in AP free schools opened during the 2017 to 2018 or 2018 to 2019 academic years, with no deduction from DSG. We will make deductions from DSG for pre-16 places in AP free schools opened before or during the 2016 to 2017 academic year. Deductions are from the pupil’s home local authority, based on school census data. We will notify local authorities of these deductions in March 2019. No deductions will be made from local authorities’ 2019 to 2020 DSG for post-16 high needs places in AP free schools; these will be funded directly be ESFA.

High needs places in AP free schools opened during the 2018 to 2019, or 2019 to 2020, academic years are not included in the DSG allocations. We will fund these places directly, without any deductions from local authorities. We will publish a schedule of ESFA funded places in each free school to help inform local authorities’ commissioning by the end of March 2018.

4.5 Hospital education

We may make some minor adjustments to the hospital education funding amounts included in the national funding formula allocations based on information submitted by local authorities in the place change notification process in November 2018.

5. Early years block

5.1 Funding for the free entitlements and early years pupil premium (EYPP)

The following initial allocations of funding have been calculated as set out in the early years national funding formula (EYNFF) technical note for 2019 to 2020 published in November 2018:

  • universal 15 hour entitlement for three- and four-year-olds
  • additional 15 hours entitlement for three- and four-year-old children of eligible working parents
  • 15 hours entitlement for disadvantaged two-year-olds
  • EYPP

ESFA will update these allocations in:

  • July 2019, based on January 2019 census numbers
  • July 2020, based on five twelfths of the January 2019 census numbers (to cover the April 2019 to August 2019 period), and seven twelfths of the January 2020 census numbers (to cover the September 2019 to March 2020 period)

This means that the final allocations for each of these four funding streams will be based on (5 ÷ 12 × January 2019 census numbers) + (7 ÷ 12 × January 2020 census numbers).

5.2 Early years disability access fund (DAF)

Initial allocations have been calculated as set out in the EYNFF Technical Note for 2019 to 2020 published in November 2018.

ESFA will update these allocations in July 2020, based on the latest Disability Living Allowance (DLA) numbers.

5.3 Early years supplementary funding for maintained nursery schools

The initial allocations have been calculated as set out in the 2019 to 2020 early years technical note published in November 2018.

In this calculation, the part time equivalent (PTE) count of children taking up the universal 15-hour entitlement in maintained nursery school settings (element G within the early years technical note) will be updated in:

  • July 2019, based on January 2019 census numbers
  • July 2020, based on five twelfths of the January 2019 census numbers (to cover the April 2019 to August 2019 period), and seven twelfths of the January 2020 census numbers (to cover the September 2019 to March 2020 period)

This means that the final amounts used for element G of the calculation will be based on (5 ÷ 12 × January 2019 census numbers) + (7 ÷ 12 × January 2020 census numbers).

DfE has agreements with the following agencies to purchase a single national licence managed by DfE for all state funded schools in England:

  • Christian Copyright Licensing International (CCLI)
  • Copyright Licensing Agency (CLA)
  • Education Recording Agency (ERA)
  • Filmbank Distributors Ltd. (for the PVSL)
  • Mechanical Copyright Protection Society (MCPS)
  • Motion Picture Licensing Company (MPLC)
  • Newspaper Licensing Authority (NLA)
  • Performing Rights Society (PRS)
  • Phonographic Performance Limited (PPL)
  • Schools Printed Music Licence (SPML)

Local authorities and schools do not to negotiate individual licences. DfE pays the cost, including VAT, to the agencies and provides this as a service to local authorities at a charge. Local authorities can reclaim VAT on the licences. These arrangements cover academies as well as maintained schools. Local authorities can hold this money centrally rather than include it in school budgets.

We have sent local authorities details of the charges for 2019 to 2020 separately (because the figures are commercial in confidence). ESFA will deduct the charge from the DSG and issue each local authority with a VAT invoice.

7. Independent school transfers

Where independent schools transfer into the maintained sector, in or after April 2019, we will adjust the actual pupil count used in the schools block allocations to add the relevant pupil numbers, depending on when the school transfers and the portion of the year for which it is a maintained school. For example, if a school transfers in September 2019, we will increase the schools block by the number of pupils attending the school as recorded on the October 2019 school census multiplied by seven twelfths multiplied by the local authority’s PUF or SUF depending on the year groups of the pupils transferred.

8. Funding for the Isles of Scilly and City of London

We will continue to fund The Isles of Scilly and the City of London each through a single grant, since their low pupil populations and other unique characteristics make it impracticable to fund through national funding formulas. In addition, they will receive the pupil premium grant.

9. Next steps timetable

Date Action
December 2018 ESFA announce 2019 to 2020 schools block, CSSB, early years block, high needs block, and details of the charges for national copyright licences issued to local authorities
January 2019 Local authorities submit final APT for 2019 to 2020 by 21 January
January 2019 ESFA publishes 2019 to 2020 recoupment guidance
End February 2019 ESFA issues details of high needs places in free schools
March 2019 ESFA updates DSG allocations for recoupment and high needs deductions for academies as at 1 March 2019
3 April 2019 ESFA makes deductions for national copyright licences from first DSG payment for 2019 to 2020
May to June 2019 ESFA updates import and export adjustments for cross border high need places in high needs national funding formula using January 2019 census and R06 ILR 2018 to 2019 data
July 2019 ESFA updates DSG allocations for in-year recoupment and high needs deductions and early years block updated for data from January 2019 census
November 2019 ESFA updates DSG allocations for in-year recoupment and high needs deductions
March 2020 ESFA makes final updates to DSG allocations for in-year recoupment and high needs deductions
July 2020 ESFA updates early years block funding to take account of January 2019 census figures

10. Pupil number information

10.1 Introduction

This note provides detail of the pupil number counts which have been used in the calculation of the financial year 2019 to 2020 DSG allocations for the schools and early years blocks to local authorities.

The schools block and CSSB pupil counts are derived primarily from the October 2018 school census. This underpinning dataset is collected in a similar way to the January school census (from which detailed analysis is published as official statistics each summer).

Early years blocks block pupil counts are derived primarily from the January 2018 school census and early years census.

High needs block basic entitlement allocations are derived from pupil counts data from the October 2018 school census.

10.2 Schools block and CSSB

The pupil numbers used in the DSG calculation are those recorded as present in maintained schools and academies in the schools census, from reception (R) to year 11. This also includes pupils in SEN units or resourced provision as these pupils now receive their core element funding through the schools block. Any pupils recorded as year R but who are less than four years old are not counted, because funding for these pupils is provided under the early years block.

Pupil counts

The pupil numbers used to determine the 2019 to 2020 schools block allocations are from the October 2018 school census:

  • all pupils in maintained primary and secondary schools, and academies, which are going through recoupment at census date, in national curriculum year groups R to 11, aged 4 or above at 31 August 2018
  • all pupils in maintained primary and secondary schools, and academies, which are going through recoupment at census date, whose national curriculum year group is missing or ‘X’, aged 4 to 15 at 31 August 2018

The number of pupils in SEN units or resourced provision in maintained primary, secondary schools, and academies, is now included in the pupil numbers as they receive their core element funding through the schools block.

All pupils in the schools block are counted as 1.0 FTE regardless of their part-time or full-time status. Every relevant pupil with a sole or dual (main) registration is counted.

In a change from last year, if a duplicate remains unresolved, the 1.0 FTE of that pupil is once again apportioned for the schools block. We do not fund duplicate Unique Pupil Numbers (UPNs) in the school census. We identify potential duplicate UPN cases and ask authorities to resolve them. If a duplicate remains unresolved, the 1.0 FTE of that pupil is equally divided between the local authorities involved; that is, 1 pupil between 2 local authorities will result in both authorities receiving a headcount of 0.5.

For the growth element of the school block, pupils numbers form the October 2017 census are compared to the October 2018 figures at middle super output area (MSOA) on the same basis. Any positive growth at MSOA level is used to determine the 2019 to 2020 growth allocations as outlined in the methodology.

10.3 Early years block

The early years block covers the pupils eligible under the EYNFF, covering:

  • universal three- and four-year-old entitlement
  • additional three- and four-year-old entitlement for working parents
  • EYPP for eligible three- and four-year-olds
  • any pupils recorded as year R, but who are less than four years old

Pupil counts for three- and four-year-old universal entitlement

The EYNFF allocations are calculated using PTE pupil numbers. 1.0 PTE is defined as a child taking up 15 hours per week over 38 weeks. Therefore, a child taking up 30 hours per week is counted as 2.0 PTE.

PTE pupil counts from the January 2018 schools, early years and alternative provision censuses are used to calculate universal entitlement funding allocations as follows.

From the January 2018 schools census:

  • all PTE pupils in maintained nurseries, maintained schools, and all academies, in national curriculum year groups N1 and N2 aged three or four at 31 August 2017, including any three-years-olds recorded as national curriculum year group R
  • all PTE pupils in maintained nurseries, maintained schools, and all academies, whose national curriculum year group is missing or ‘X’ aged three at 31 August 2017

From the January 2018 early years census:

  • all three- and four-year-old PTEs as at 31 December 2017

From the January 2018 alternative provision census:

  • all pupils in independent schools without a statement of SEN or EHCP aged three at 31 December 2017
  • all pupils in independent schools without a statement of SEN or EHC plan aged three at 31 August 2017 but four by 31st December 2017

Pupil counts for three- and four-year-old additional hours funding

Data on how many three- and four-year-old children are taking up their additional hours entitlement is taken from the schools and early years censuses using the eligibility code and the same pupil counts as used for the universal entitlement, and ensuring that no pupil’s hours across both the universal and additional hours exceeds 30.

Pupil counts for EYPP funding allocations

The funding methodology for EYPP remains the same as in 2018 to 2019. The funding allocations for 2019 to 2020 have been calculated based on January 2018 census data on EYPP take-up by eligible three- and four-year-olds.

Pupil counts for maintained nursery school supplementary funding allocations

The 2019 to 2020 allocations use the PTE pupil counts from the January 2018 school census for maintained nursery schools.

Pupil counts for two-year-old funding allocations

The pupil numbers that are used to determine the allocations for two-year-old funding are as follows:

From the January 2018 school census:

  • all PTE pupils in maintained nurseries, maintained schools, and all academies, in national curriculum year groups N1 and N2, aged 2 at 31 August 2017
  • all PTE pupils in maintained nurseries, maintained schools, and all academies, whose national curriculum year group is missing or ‘X’, aged 2 at 31 August 2017

From the January 2018 early years census:

  • all eligible two-year-old PTEs at 31 December 2017
  • from the January 2018 alternative provision census:
  • all eligible pupils in independent schools without a statement of SEN or EHC plan, aged 2 at 31 December 2017

Disability access fund (DAF)

The funding allocation for 2019 to 2020 will be an illustrative allocation based on an estimate of the number of three- and four-year-olds, who are not in reception that are claiming DLA.

For each local authority, their total February 2018 DLA claimant count of three- and four-year-old children, using data from the Department for Work and Pensions (DWP), will be adjusted to remove an estimated number of children in reception. This will give an estimate of the number of three- and four-year-olds eligible to take up DAF in the local authority.

10.4 High needs block

The pupil numbers used to determine the basic entitlement of the 2019 to 2020 high needs block allocations are as follows.

From the October 2018 school census:

  • all pupils in maintained special schools, special academies, and special free schools, in national curriculum year groups R to 14, aged 4 to 18 at 31 August 2017
  • all pupils in maintained special schools, and special academies, and special free schools, whose national curriculum year group is missing or ‘X’, aged 4 to 18 at 31 August 2017

From the January 2018 AP census:

  • all pupils in independent schools with a SEN, EHC plan, or SEN support, aged 4 to 18 at 31 August 2017

All pupils in the high needs block are counted as 1.0 FTE regardless of their part-time or full-time status. Every relevant pupil with a sole or dual (main) registration is counted.

We do not fund duplicate UPNs in the high needs block. We identify potential duplicate UPN cases and ask authorities to resolve them. If a duplicate remains unresolved, the 1.0 FTE of that pupil is equally divided between the local authorities involved; that is, one pupil between two local authorities will result in both authorities receiving a headcount of 0.5.

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