Explanatory note

These Regulations, which apply to grant-maintained schools situated in England, replace the provisions of the Education (Grant-maintained Schools) (Finance) Regulations 1991.

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 such schools. 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.

The principal changes introduced by these Regulations are to the methods of calculating the amount of maintenance grant payable to the governing bodies of grant-maintained schools.

Part 2 of these Regulations provides for the calculation of a grant-maintained school’s maintenance grant where the financial provision made for schools maintained by the former maintaining authority is regulated by a scheme made under section 33 of the Education Reform Act 1988. In general, the amount of maintenance to be paid to the governing body of the school will be determined in accordance with regulation 4. Under that regulation maintenance grant comprises 3 or 4 elements—

Under regulation 5, the Secretary of State is required to determine an amount which the Secretary of State is satisfied is or approximates to an amount which a comparable maintained school could have received, by the application of the allocation formula in the former maintaining authority’s scheme, as that school’s budget share. This replicates a provision made in the 1991 Regulations. New provision is made in regulation 5 which affects the way in which the allocation formula is to be applied for the purposes of this regulation. Under regulation 5(2), the Secretary of State is to apply the allocation formula so as to ignore any variations to it, where the scheme has been varied or replaced with the effect that any provision for taking account of a particular characteristic of a school—

Similarly, where there has been any change in any of the amounts attributed to factors in the allocation formula, and the proportion that such amount or amounts is of a comparable maintained school’s budget share is less than it was before the change was made, then the Secretary of State is to apply the allocation formula as if no such change had been made (subject to him adjusting the amount or amounts to take account of a change in the level of the former maintaining authority’s expenditure and any significant change in the characteristics of the school).

Regulation 5(6) applies where the allocation formula includes provision for taking into account the amount of any non-domestic rate payable in respect of a school. Where the allocation formula includes such provision, the Secretary of State is required, in applying the allocation formula, to do so as if the amount of the non-domestic rate payable was that payable, in the case of a school which was a charity before becoming grant-maintained, by a comparable maintained school which is a charity; and, in the case of a school which was not so a charity, by a comparable maintained school which is not a charity.

Regulation 8 provides for the amount of the percentage addition to be 15 per cent. This is subject, however, to regulations 9 and 10. Regulation 9 applies where the amount determined as a percentage addition would be less than the amount so determined under the 1991 Regulations. In those circumstances, regulation 9 provides that regulation 8 shall have effect as if it required the Secretary of State to determine an amount equal to the amount determined under the 1991 Regulations.

Regulation 10 applies where before the relevant date (as initially determined in accordance with regulation 17) either the former maintaining authority or the governing body of the school requests in writing that a determination is made under this regulation; and it appears to the Secretary of State that on the relevant date in relation to the school at least 15 per cent. of either primary or secondary maintained schools in the area of the former maintaining authority are grant-maintained schools. Where regulation 10 applies the Secretary of State is required to calculate the amount of the percentage addition by reference to the amount that a sum in respect of the former maintaining authority’s general school’s budget is a percentage of the amount of the aggregated budget which is available to primary or (as the case may be) secondary schools covered by the authority’s scheme.

Regulation 13 enables the Secretary of State to determine maintenance grant in respect of a school not in accordance with regulation 4, but in accordance with regulation 15 or (as the case may be) 16. Before determining maintenance grant pursuant to regulation 13 the Secretary of State is required to consult the former maintaining authority and the governing body or prospective governing body of the school. This requirement does not apply, however, where the school’s incorporation date is 1st April in the financial year in question, and it appears to the Secretary of State that, in relation to that year, a comparable maintained school’s budget share would have been determined wholly or mainly by reference to expenditure for the purposes of the school in a previous financial year.

Part 3 of these Regulations provides for the determination of maintenance grant where the financing provision made for schools maintained by the former maintaining authority is not subject to regulation by a scheme made under section 33 of the 1988 Act (regulation 14). Regulation 15 and 16 effectively replicate the provisions made by regulations 5 and 6 in the 1991 Regulations except that the amount of the percentage addition is 15 per cent. (regulations 15(5) and 16(4)).

Regulation 17 provides that any amount required to be determined by the Secretary of State under Parts 2 and 3 of these Regulations shall be determined by him on the information available to him on a date determined by him and notified to the former maintaining authority (referred to as “the relevant date”). Regulation 18 provides for the apportionment of maintenance grant for schools which attain grant-maintained status other than at the beginning of the financial year in question. Regulation 19 provides for the adjustment of maintenance grant in the light of subsequent changes, or to correct errors.

Regulation 21 and Schedule 4 provide for the payment of capital grants. Regulation 22 provides for the payment of special purpose grants for the kinds of expenditure specified in Schedule 5.

Regulations 20 and 23 and Schedule 3 specify requirements, and em power the Secretary of State to determine other requirements, with which the 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 24 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.