Unused school funding to be redistributed to benefit pupils

Schools in West Berkshire have recently voted overwhelmingly in favour of a proposal which would see excess funds currently held by schools redistributed to support local children.

Each year schools are given a grant from the government to spend on running the school. Funding should be used during the year for the benefit of pupils, but schools will sometimes carry some forward from year to year to allow for unseen contingencies or for development funds to put towards capital projects. 

In some cases an excessive amount of funding has been built up and is sitting in school accounts. Since 2015, the amount of funding schools have been keeping without any spending plans has more than tripled from £4m to £13.4m.  

Recognising that there are pupils across the district who need additional support now, 68% of schools agreed that the surplus in government funding held by schools should be returned and redistributed so that it could be put to good use to support children with additional needs. The Schools Forum - representing local schools - agreed by six to one to apply this from this year in line with the feedback received by schools through the consultation.  West Berkshire Councillors do not sit on this body and therefore cannot vote on any decision. 

This is a decision which has been taken collectively by schools and not West Berkshire Council. It applies to Government funding provided to the school and not to money raised through fundraising by or on behalf of the school. Only funding in excess of 10% of the surplus, where it is not already committed, will be returned - allowing the schools to keep more than could be returned and favourable to the 5% for secondary and 8% for primary schools under schools finance guidance.

It is not the intention of West Berkshire Council or the Schools Forum to take income which has been raised by or on behalf of the school and which should be kept in a separate account to the grant funding. Schools will have the opportunity to provide financial information to show the source of accrued funds and which will be considered by the Council before any funding is returned for redistribution.

Councillor Heather Codling, Executive Member for Children and Family Services said:

"This a decision which was taken collectively by schools themselves to improve the provision of support and services to all children and young people in the district. It will only affect schools with significant and excessive funding which has not been committed to projects - it's money sitting in accounts without appearing to provide any benefit for our young people. This move will allow for a fairer and more productive use of the money - in my view it's the right thing to do for our residents."