Allocation of resources

National funding formula

In Derby, we are creating an inclusive and ambitious city for all, find out more in our Local Area Inclusion Plan. We want all schools to be inclusive by design, so children in every corner of the city can have their needs met in their community, where we know education outcomes are better for children and young people. Schools receive funding for pupils in a number of ways, to make sure needs are supported at the right time, in the right place.

We implement the national funding formula (NFF) meaning schools in Derby continue to be funded above the levels national policy has determined, which is great news for all our schools.

Element 1 funding – Age Weighted Pupil Unit (AWPU)

This funding comes from the school’s block.

As part of the delegated budget, all schools receive basic funding for every pupil known as the AWPU (Age Weighted Pupil Unit). Schools also each receive funding for other pupil characteristics such as deprivation and a lump sum amount for the school which must meet the minimum funding level as set by the Department for Education minimum funding levels per pupil, for 2025-26 primary schools are at least £4,955 per pupil and secondary schools, at least £6,495 per pupil.

This funding covers teaching/SENCO costs and is the base per pupil funding that every school gets. Reasonable adjustments that are to be met by the school. The duty to have an accessibility strategy, SEN/D policy and SEND information report.

Element 2 funding – Notional SEND budget

This funding comes from the School Block.

Each school’s delegated budget includes a notional SEN allocation. Nationally, schools are required to fund the first £6,000 of additional costs per child or young person with SEND; this funding is used to implement strategies such as resources and/or additional support. Some pupils with SEND will also be eligible for additional funding, such as Pupil Premium.

This includes developing and embedding ordinarily available provision, for example, ELSA, and training and development of staff. Low impact and high frequency SEND support and interventions including the need for Lego therapy, zones of regulation and circle of friends. Adaptation, development, and delivery of appropriate curriculum and environment. Schools must show how they have used SEND notional for young people with SEND to meet their needs up to the threshold of £6000 if they make a request for assessment for additional resources.

Element 3 – High needs top-up funding

This funding comes from the high needs block.

The funding required over and above the core funding.

This funding relates to an individual pupil and the amount allocated is defined by the individual pupil’s needs and agreed provision, as described in their EHC plan. This top-up funding is used along with universal funding and £6,000 from the school’s notional SEN funding to provide the provision described with the pupil’s EHC plan. Top-up funding is provided to the school for the time a pupil attends that school (part-time places are funded accordingly). If a Derby school has a child from another local authority attending their school, the school will have to claim ‘Top up’ funding directly from the other local authority.

This pays for per pupil support beyond SEND Notional, so, for example, if you have a young person with a high level of need who requires more bespoke provision, the element will be used to put in place the provision as specified in their EHC plan.

The local authority has reviewed our processes that allocate element 3 funding. This is often called ‘top up funding’ or ‘banding’. The review was to ensure that funding allocations agreed are consistent and based on a child or young person’s needs.

Allocating element 3 funding

The proposal was taken to ‘Schools Forum’ on 10 December 2024. Schools were part of the development of the matrix including the description of need and cases were modelled on the designed matrix. Applying changes to the funding using the matrix will be phased over a 2-year period. This applies for school age pupils.

Using the matrix provides the following benefits:

• Schools do not need to complete a funding form for each pupil.
• Funding is allocated at the time of the EHC plan being finalised.
• Funding remains with the pupil throughout key stages.
• New schools do not need to complete a funding form as the funds will move with the pupil.
• Consistent approach to funding.
• Needs-led support.

If schools are not in agreement to the band provided, schools can respond to the consultation and clarify the schools' position on meeting the needs with the resources available.

This will be followed by a discussion and review of provision across the school, use of the notional budgets (local authorities are required to consider these by the Department for Education) and what additional support might a school require either in terms of capital expenditure, or other resources.   

This helps us to determine the amount of element 3 that a child's EHC plan will attract. The matrix will be used by our multi-agency panel in conjunction with the EHC plan, assessment information, annual review paperwork and provision maps to get a full understanding of the needs of the child or young person. This has been based on examples used in other local authorities and combines the decision-making process for an EHC assessment or plan and the graduated approach.

FIDS scores

The matrix sets out a number of descriptors of needs across all areas of SEND. Panel members will determine a FIDS score for each of the areas. FIDS stands for:

• Frequency
• Intensity
• Duration
• Severity

Using FIDS helps us to work out the complexity of the needs that a child or young person presents with and using our matrix, we will then ensure we are allocating enough funding to support the delivery of the special educational provision they have been identified as needing.

The matrix will be used for children and young people across mainstream, resourced provisions and special schools from ages 5-16. This will ensure that there is a greater consistency of funding across schools in the city and will support children with potential transitions between types of settings.

The matrix will take into account all of the needs of the child and all of the resources available to a given education setting, for example, notional funding. Our testing has shown that some children will receive less than they do now, and others will receive more.

If the funding does decrease for an existing EHC plan, we will work with schools to support them in how to implement the plan within the funding identified against appropriate provision.

Funding decisions are not appealable to the tribunal service. However, if the school do not agree with the amount of funding awarded their first point of contact is their allocated SEND Officer. They will look into the concerns raised and gather information to present to senior managers who will determine whether the matrix decision making has allocated sufficient funding to discharge the Council's legal duties.

The matrix will guide our decision making around funding, but there will be discretion for panel members to suggest funding outside of the banding attributed where it is felt that the matrix has not determined the correct level. This learning will then be fed back into the matrix to reduce the need for this over time. The matrix is individually needs-led support and remains with the pupils unless at the annual review there is a change of need and the matrix is required to be completed again. If school believe they need additional resources to meet the provision outlined in ‘Section F’ then the SEND team will have a discussion and exceptional funding may be granted to address an individual provision for a fixed period of time.

Exceptional funding

There may be times where the school needs additional resources for a fixed period of time to implement provision to meet the needs of a pupil and this can be discussed with the SEND team on an individual basis.

The local authority has a duty to ensure the provision detailed in ‘Section F’ of a child or young person’s EHC plan is being met. Where parents believe the provision is not being provided, they should speak to the School SENCO in the first instance and if concerns remain, email the SEND team at sendduty@derby.gov.uk.