Guidance

DSG: technical note 2022 to 2023

Updated 24 July 2023

This guidance was withdrawn on 4 September 2024

Find the latest information about the dedicated schools grant in our pre-16 schools funding collection.

Applies to England

1. Introduction

This technical note sets out details of the calculation of dedicated schools grant (DSG) allocations for 2022 to 2023.

The DSG allocations for 2022 to 2023 are made up of:

1. The schools block; based on the primary units of funding (PUF), and secondary units of funding (SUF), and premises funding announced in July 2021 and growth funding.

2. The central school services block (CSSB); based on the units of funding and total historic commitments funding announced in July 2021.

3. The high needs block; based on the allocations announced in July 2021 with the basic entitlement element of the national funding formula (NFF) updated for the number of pupils in the October 2021 school census; and the additional high needs allocations funding announced in December 2021.

4. The early years block; based on the early years funding rates published in November 2021 and made up of:

   • funding for the universal 15-hour entitlement for all 3 and 4-year-olds

   • funding for the additional 15 hours for 3 and 4-year-old children of eligible working parents

   • funding for the 15-hour entitlement for disadvantaged 2-year-olds

   • funding for the early years pupil premium (EYPP)

   • funding for the disability access fund (DAF)

   • supplementary funding for maintained nursery schools (MNS)

You can view the July 2021 announcements for the schools block, CCSB and high needs block at national funding formula tables for schools and high needs: 2022 to 2023 and for the early years block at early years funding 2022 to 2023. We have published the 2022 to 2023 DSG allocations for each local authority. This shows the DSG prior to academies’ recoupment from the schools block.

2. Calculating the 2022 to 2023 dedicated schools grant

Information on the pupil numbers used for the schools block, CSSB, high needs block NFF basic entitlement factor, and early years block can be found in section 11. A pupil number tool will be published in January 2021.

Each unit of funding is rounded to the nearest penny.

Final DSG allocations are rounded up to the nearest £1.

Pupil numbers are rounded to two decimal points.

3. Payment arrangements

We will pay the grant to local authorities in 25 instalments on the dates set out in section 12. Payments are based on the total DSG allocation notified in December 2021 minus recoupment for academies and deductions for high needs places.

4. Schools block

4.1 Schools block allocations

The PUFs for each local authority are multiplied by:

• the number of pupils in reception to year group 6 from the October 2021 school census plus
• pupils aged 4 to 10 not assigned to a year group from the October 2021 school census

The SUFs for each local authority are multiplied by:

• the number of pupils in year groups 7 to 11 from the October 2021 school census plus
• pupils aged 11 to 15 not assigned to a year group from the October 2021 school census

Pupils in special units and resourced 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 then add:

1: The actual 2022 to 2023 funding for the premises factor (as this is based on historic spend), as published in the NFF summary table in July 2021.

2: Growth funding using the differences between the primary and secondary numbers on roll in the local authority in the October 2020 and October 2021 school censuses as described in annex D of the schools block national funding formula (NFF) technical note published in July 2021.

We then deduct:

3: For those local authorities who have opted into the new system where national non-domestic rates (NNDR) are paid by the ESFA directly to billing authorities on behalf of all maintained schools and academies from 2022 to 2023 onwards:

• the national non-domestic rates (NNDR) figure for each local authority as set out in the 2022 to 2023 DSG allocations.

For those local authorities who have not opted into the new system:

• the NFF NNDR value for all academies in the local authority from the schools block.
• for each subsequent DSG update, local authorities with in-year academy converters will have their NFF NNDR deduction increased pro rata for the period of the financial year that the converters are academies

The 2022 to 2023 DSG allocations published in March 2022 have been updated to reflect this.

4.2 Arrangements for academies recoupment 2022 to 2023

We will calculate amounts for recoupment based on the individual schools budget (ISB) share, excluding business rates, shown in the authority proforma tool (APT) submitted in January 2022. We will provide local authorities with details of the proposed recoupment amount, and relevant calculations, by the end of April 2022. We will publish detailed recoupment guidance in early 2022.

5. Central school services block

For each local authority, we multiply the CSSB units of funding by the number of pupils recorded in the October 2021 school census in

• reception to year group 11, and
• 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.

We have made a small number of manual adjustments to the actual funding for historic commitments, based on specific evidence submitted by local authorities of ongoing costs which they would not have been able to unwind since 2013 to 2014. This protects allocations from a reduction below the value of these costs. The School and Early Years Finance (England) Regulations 2022 will set out how this funding may be used.

6. High needs block

The high needs funding block is a single block for local authorities to spend on provision for pupils and students aged 0 to 24, with high needs. Before any deductions are made, 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)
• mainstream academies and free schools (pre-16 places in special units and resourced provision and post-16 high needs places)
• special academies (pre-16 and post-16 places)
• special free schools (pre-16 and post-16 places): information on how this is calculated is available in the special free schools adjustments a guide for local authorities
• non-maintained special schools (NMSS) (pre-16 and post-16 places – £6,000 of the £10,000 per place only)
• alternative provision (AP) academies
• further education (FE) colleges (including sixth form colleges and 16-19 academies), independent learning providers (ILPs) and special post-16 institutions (SPIs) (post-16 places only)
• AP free schools (pre-16 places, excluding those at schools opened during the 2021 to 2022, or 2022 to 2023 academic years)

In addition to the funding for places described above, the high needs block also includes top-up funding for pupils and students occupying the places in the provider types listed above.

It also includes:

• 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)
• funding for central high needs services and budgets

6.1 High needs block allocations

We have updated the allocations for the basic entitlement element of the high needs national funding formula to use pupil number data from the October 2021 school census.

6.2 Import and export adjustments

The allocations announced in July 2021 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 non-maintained special schools (NMSSs) and SPIs as exports to ESFA, to reflect that funding for these schools and colleges is allocated directly by ESFA. ESFA will continue to directly fund NMSS and SPI places in line with the principles outlined in the 2022 to 2023 high needs operational guide.

In the summer term 2022, we will update the import and export adjustments to reflect the latest data from the January 2022 school census and the R06 of the 2021 to 2022 Individual Learner Record (ILR), which will include the exports to ESFA for NMSSs and SPIs.

6.3 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 2021 to 2022 for pre-16 places directly paid for by ESFA to schools and colleges and the final 4 months for post-16 places.

These numbers have also been used to give provisional deductions for the first 7 months of academic year 2022 to 2023 (the first 8 months for post-16 places). In April 2022, we will update both sets of deductions to reflect further academy conversions. We will also update the deductions for academic year 2022 to 2023 to reflect the outcome of the 2022 to 2023 place change notifications process.

Special units and resourced provision are funded on the places reported and determined through the place change notification process, not on the number of pupils reported on the 2022 to 2023 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.

6.4 Alternative provision free schools with high needs places

ESFA directly funds places in AP free schools opened during the 2021 to 2022 or 2022 to 2023 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 2020 to 2021 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 April 2022. No deductions will be made from local authorities’ 2022 to 2023 DSG for post-16 high needs places in AP free schools; these will be funded directly by ESFA.

6.5 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 2021.

7. Early years block

7.1 Funding for the free early years childcare entitlements

The hourly rates for the early years free entitlements for 2-year-olds and 3 and 4-year-olds were announced in November 2021 as set out in the 2022 to 2023 early years technical note.

Funding for the early years free entitlements includes:

• universal 15-hour entitlement for 3 and 4-year-olds
• additional 15-hour entitlement for 3 and 4-year-old children of eligible working parents
• 15 hours entitlement for disadvantaged 2-year-olds

The indicative allocations for each local authority for the above funding streams is calculated as follows:

• the number of part-time equivalents (PTEs) taking up the entitlements as recorded on the January 2021 schools, early years and AP censuses
• multiplied by 15 hours × 38 weeks × local authority’s hourly funding rate ESFA will update these initial allocations in:
• July 2022 based on January 2022 PTE census numbers
• July 2023, based on five-twelfths of the January 2022 PTE census numbers (to cover the April 2022 to August 2022 period), and seven-twelfths of the January 2023 PTE census numbers (to cover the September 2022 to March 2023 period)

This means that the final allocations for each of these funding streams will be based on (five-twelfths January 2022 PTE census numbers) + (seven-twelfths January 2023 PTE census numbers).

7.2 Early years pupil premium (EYPP)

The national rate for EYPP is 60 pence per hour per eligible child, up to a maximum 570 hours per year, as set out in the 2022 to 2023 early years technical note.

The indicative allocation for each local authority is calculated as follows:

• the number of PTEs taking up the EYPP as recorded on the January 2021 schools, early years and AP censuses.
• multiplied by 15 hours × 38 weeks × £0.60

ESFA will update these initial allocations in:

• July 2022 based on January 2022 PTE census numbers
• July 2023, based on five-twelfths of the January 2022 PTE census numbers (to cover the April 2022 to August 2022 period), and seven-twelfths of the January 2023 PTE census numbers (to cover the September 2022 to March 2023 period)

This means that the final allocations will be based on (five-twelfths January 2022 PTE census numbers) + (seven-twelfths January 2023 PTE census numbers).

7.3 Early years disability access fund

The national rate for DAF is £800 per eligible child per year, as set out in the 2022 to 2023 early years technical note.

Allocations have been calculated based on Disability Living Allowance (DLA) data from February 2021. These allocations will not change and should be considered as final for 2022 to 2023.

For each local authority, the total February 2021 DLA claimant count of 3 and 4-year-old children, using data from the Department for Work and Pensions (DWP), is adjusted to remove an estimated number of children in reception. This gives an estimate of the number of 3 and 4-year-olds eligible to take up DAF in the local authority. This is then multiplied by £800 to arrive at the final allocation.

7.4 Early years supplementary funding for maintained nursery schools

The 2021 to 2022 hourly supplementary funding rates are the starting point for calculating the 2022 to 2023 supplementary funding rates. These are uplifted by 3.47% and then rounded to 2 decimal places, which is equivalent to the increase in the 3 and 4-year-old hourly funding rates. The local authority rates for supplementary funding in 2022 to 2023 are shown in the 2022 to 2023 DSG allocations tables .

The allocation for each local authority qualifying for the supplementary funding is calculated as follows:

• the number of part-time equivalents (PTEs) taking up the universal 15 hours in MNS as recorded on the January 2021 schools, early years and AP censuses
• multiplied by 15 hours × 38 weeks × local authority’s hourly supplementary funding rate ESFA will update these initial allocations in:
• July 2022 based on January 2022 PTE census numbers
• July 2023, based on five-twelfths of the January 2022 PTE census numbers (to cover the April 2022 to August 2022 period), and seven-twelfths of the January 2023 PTE census numbers (to cover the September 2022 to March 2023 period)

This means that the final allocations will be based on (five-twelfths January 2022 PTE census numbers) + (seven-twelfths January 2023 PTE census numbers).

8. Deductions for national copyright licences

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 need 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 2022 to 2023 separately (because the figures are commercial in confidence). In April 2022, ESFA will deduct the charge from the DSG and issue each local authority with a VAT invoice.

9. Independent school transfers

Where independent schools transfer into the maintained sector, in or after April 2022, 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 2022, we will increase the schools block by the number of pupils attending the school as recorded on the October 2022 school census multiplied by seven-twelfths multiplied by the local authority’s PUF or SUF depending on the year groups of the pupils transferred.

10. 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 formulae. In addition, they will receive the pupil premium grant.

11. Pupil number information

11.1 Introduction

This note provides detail of the pupil number counts which have been used in the calculation of the financial year 2022 to 2023 DSG allocations.

The schools block and CSSB pupil counts are derived primarily from the October 2021 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 block pupil counts are derived primarily from the January 2021 school census and early years census.

High needs block basic entitlement allocations are derived from pupil counts data from the October 2021 school census and the alternative provision census from January 2021.

11.2 Schools block and central school services block

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 special educational needs (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 4 years old are not counted, because funding for these pupils is provided under the early years block.

11.3 Pupil counts

The pupil numbers used to determine the 2022 to 2023 schools block allocations are from the October 2021 school census, and comprise:

• 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 2021
• 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 2021.

The number of pupils in SEN units or resourced provision in maintained primary schools, 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.

If a duplicate remains unresolved, the 1.0 FTE of that pupil is 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. For example, one pupil between 2 local authorities will result in both authorities receiving a headcount of 0.5.

For the growth element of the school block, pupil numbers form the October 2020 census are compared to the October 2021 figures at middle super output area (MSOA) on the same basis. Any positive growth at MSOA level is used to determine the 2022 to 2023 growth allocations as outlined in the methodology.

11.4 Early years block

The early years block covers the pupils eligible under the early years national funding formula (EYNFF), covering:

• universal 3 and 4-year-old entitlement
• additional 3 and 4-year-old entitlement for working parents
• EYPP for eligible 3 and 4-year-olds
• any pupils recorded as year R, but who are less than 4 years old

11.5 Pupil counts for 3 and 4-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 2021 schools, early years and AP censuses are used to calculate universal entitlement funding allocations as follows:

from the January 2021 schools census

• all PTE pupils in maintained nurseries, maintained schools, and all academies, in national curriculum year groups N1 and N2 aged 3 or 4 at 31 August 2020, including any 3 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 3 at 31 August 2020

from the January 2021 early years census

• all 3 and 4-year-old PTEs as at 31 December 2020 from the January 2021 AP census:
• all pupils in independent schools without a statement of SEN or an Education Health and Care (EHC) plan aged 3 at 31 December 2020
• all pupils in independent schools without a statement of SEN or EHC plan aged 3 at 31 August 2020 but 4 by 31st December 2020

11.6 Pupil counts for 3 and 4-year-old additional hours funding

Data on how many 3 and 4-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.

11.7 Disability access fund allocations

The funding allocation for 2022 to 2023 will be an illustrative allocation based on an estimate of the number of 3 and 4-year-olds, who are not in reception that are claiming the disability living allowance (DLA).

For each local authority, their total February 2021 DLA claimant count of 3 and 4-year-old children, using data from the DWP, will be adjusted to remove an estimated number of children in reception. This will give an estimate of the number of 3 and 4-year-olds eligible to take up DAF in the local authority.

11.8 Early years pupil premium funding allocations

The funding methodology for EYPP remains the same as in 2021 to 2022. The funding allocations for 2022 to 2023 have been calculated based on January 2021 census data on EYPP take-up by eligible 3 and 4-year-olds.

11.9 Maintained nursery school supplementary funding allocations

The 2022 to 2023 allocations use the PTE pupil counts from the January 2021 school census for maintained nursery schools.

11.10 Two-year-old funding allocations

The pupil numbers that are used to determine the allocations for 2-year-old funding are as follows:

from the January 2021 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 2020
• 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 2020

from the January 2021 early years census

• all eligible 2-year-old PTEs at 31 December 2020

from the January 2020 AP census:

• all eligible pupils in independent schools without a statement of SEN or EHC plan, aged 2 at 31 December 2020

11.11 High needs block

The pupil numbers used to determine the basic entitlement of the 2022 to 2023 high needs block allocations are as follows.

from the October 2021 school census

• all pupils in maintained special schools, special academies, and special free schools, in national curriculum year groups N1 to 14, aged 2 to 18 at 31 August 2021
• all pupils in maintained special schools, and special academies, and special free schools, whose national curriculum year group is missing or ‘X’, aged 2 to 18 at 31 August 2021

from the January 2021 AP census

• all pupils in independent schools with an EHC plan or SEN support (provision codes E and K), aged 2 to 18 at 31 August 2020

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 2 local authorities will result in both authorities receiving a headcount of 0.5.

12. Next steps timeline

Date	Action
16 December 2021	ESFA announce 2022 to 2023: schools block, early years block, high needs block and details of the charges for national copyright licenses issued to local authorities.
21 January 2022	Local authorities submit final APT for 2022 to 2023.
End February 2022	ESFA issues details of high needs places in AP free schools.
March/April 2022	Update DSG allocations for recoupment and high needs deductions for academies as at 1 March 2020. ESFA issues detailed recoupment guidance.
April 2022	Deductions made for national copyright licenses from first DSG payment for 2022 to 2023.
June 2022	Update import and export adjustment for cross border high need places in high needs national funding formula using January 2021 census and R06 ILR 2021 to 2022 data.
July 2022	Update for in-year recoupment and high needs deductions. Early years block update.
November 2022	Update for in-year recoupment and high needs deductions.
March 2023	Final update for in-year recoupment and high needs deductions.
July 2023	Early years block update.

13. DSG payment dates for financial year 2022 to 2023

Instalments	Payment date
1	05 April 2022
2	14 April 2022
3	29 April 2022
4	11 May 2022
5	20 May 2022
6	07 June 2022
7	22 June 2022
8	05 July 2022
9	22 July 2022
10	03 August 2022
11	22 August 2022
12	05 September 2022
13	22 September 2022
14	03 October 2022
15	21 October 2022
16	03 November 2022
17	22 November 2022
18	05 December 2022
19	22 December 2022
20	05 January 2023
21	20 January 2023
22	03 February 2023
23	22 February 2023
24	03 March 2023
25	22 March 2023