Explanatory note
(This note is not part of the Regulations)
These Regulations revoke and, with modifications, replace the provisions of the Education (Grant-maintained Schools) (Finance) Regulations 1989. The principal changes are to Regulation 4 of the 1989 Regulations.
The Regulations provide for the calculation of the amount of maintenance grant to be paid, and the kinds of capital and special purpose grants which may be paid, by the Secretary of State to the governing bodies of grant-maintained schools established under the provisions of the Education Reform Act 1988.
Maintenance grant is paid to meet expenditure on the normal running costs of the school; capital grant, to meet capital expenditure; and special purpose grant, to meet expenditure incurred on particular educational purposes or expenditure which the governing body could not reasonably be expected to meet out of maintenance grant.
Regulation 4 and Schedule 3 provide for the calculation of a grant-maintained school’s maintenance grant where the financial provision made for schools maintained by its former maintaining local education authority is regulated by a financing scheme under section 33 of the 1988 Act. In such cases the amount of maintenance grant comprises 3 elements:
an amount which the Secretary of State is satisfied is or approximates to an amount which the school could have received under the former maintaining authority’s financing scheme had the school continued to be maintained by the authority;
a proportion determined on a per capita basis of expenditure centrally administered by the former maintaining authority, subject to specified exclu sions, and
amounts in respect of school meals and, where appropriate, contingencies.
Where under the authority’s financing scheme amount (1) above would have been determined wholly or mainly by reference to previous expenditure on the school, maintenance grant may be determined by reference to previous expenditure on the school adjusted to take account of relevant changes in circumstances.
Provision is made for the Secretary of State to determine as the amount of grant an amount which appears to him to be fair and reasonable in the light of the former maintaining authority’s financing scheme and any information available to him:
where he has insufficient information to allow him to calculate amounts in accordance with regulation 4 or
where precise calculation would, in his opinion, be impracticable, would not significantly affect the amount or would be disproportionately costly having regard to the complexity of the calculation and the likely effect on the amount.
Regulation 5 and Schedules 1 to 3 provide for the calculation of maintenance grant for financial years before those to which regulation 4 applies. In such cases maintenance grant comprises an amount which the Secretary of State is satisfied represents the amount of expenditure by the former maintaining authority directly on the school in the last financial year before the school acquired grant-maintained status, plus an amount in respect of planned expenditure centrally administered by the former maintaining authority. These amounts may be adjusted to take account of relevant changes in circumstances. Provision is also made for the Secretary of State to determine as the amount of grant an amount which appears to him to be fair and reasonable having regard to any information which is available to him.
Regulation 6 permits the Secretary of State, after consulting the governing body (or prospective governing body) of the school and the relevant local education authority, to determine maintenance grant for a school, (a) where regulation 4 applies, in accordance with regulation 5, or (b) where the school received maintenance grant in the preceding year, by reference to the previous year’s maintenance grant adjusted to take account of relevant changes in circumstances.
Regulation 7 provides for the apportionment of maintenance grant for schools which attain grant-maintained status other than at the beginning of a financial year. Regulation 8 provides for the adjustment of maintenance grant in the light of subsequent changes or to correct errors.
Regulation 10 and Schedule 5 provide for the payment of capital grants. Regulation 11 provides for the payment of special purpose grants for the kinds of expenditure specified in Schedule 6.
Regulations 9 and 12 and Schedule 4 specify requirements, and empower the Secretary of State to determine other requirements, with which governing bodies to whom payments of maintenance grant or special purpose grant are made are to comply.
Section 81(1) of the 1988 Act empowers the Secretary of State to recover from the former maintaining authority sums in respect of the maintenance grant payable for any financial year to the governing body of a grant-maintained school. Regulation 13 specifies as the total amount which may be so recovered the amount of maintenance grant determined in accordance with the Regulations. This amount is subject to adjustment to reflect any excess paid by that authority in previous financial years.