The Education (Grant–maintained Schools) (Finance) (Wales) Regulations 1995

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which apply only to grant–maintained schools situated in Wales, replace the provisions of the Education (Grant–maintained Schools) (Finance) (Wales) Regulations 1994 which are revoked. The effect of the Regulations is summarised below, drawing attention to any substantive changes.

Part II of the Regulations, in common with the previous ones, makes provision with respect to the determination of the amount of maintenance grant to be paid to the governing body of a school for any financial year. Under regulation 4, maintenance grant comprises 3 or 4 elements:

(1) an amount representing the school’s budget share (regulations 5 and 7) or, alternatively, where the school becomes grant–maintained before the beginning of the financial year in question, an amount representing the amount determined in respect of an earlier financial year adjusted by such amount as appears to the Secretary of State to be fair and reasonable (regulation 6);

(2) an amount which is equal to a percentage of the amount referred to in paragraph (1) above or, in the case of a school which becomes grant–maintained after 1st April in the financial year, an amount which is equal to a percentage of the school’s budget share for that year appropriately adjusted (regulations 8 and 9 and Schedule 1);

(3) an amount in respect of the provision of free school meals, and, where appropriate, amounts in respect of the provision of education to junior pupils who have not attained the age of five years, amounts in respect of contingencies and amounts in respect of expenditure of the kind referred to in section 11 of the Local Government Act 1966 in respect of posts approved by the Secretary of State for the purpose of making grants in respect of such expenditure, not being expenditure expected to be offset by income received as central government grants, (regulation 10); and

(4) where applicable, an amount in respect of the school’s budget share for any financial year in which it was maintained by a local education authority and had a delegated budget in respect of which sums were not made available, deducted by the authority or spent by the governing body in exercise of their powers under section 36(5) of the Education Reform Act 1988 (regulation 11(3)).

Where, however, a school has spent more than its budget share before becoming grant–maintained, an amount in respect of the deficit may be deducted from the total of paragraphs (1) to (3) above in determining the amount of the school’s maintenance grant (regulation 11(5)).

Regulation 10 is different from the provision contained in the previous regulations in that it now covers only expenditure on free school meals, rather than all school meals as formerly. A new, simpler, formula has been introduced for determining the annual maintenance grant component for this item. An amount is determined by the Secretary of State for the relevant authority in respect of the cost, or approximate cost, of a single school meal under section 81(2) of the Education Act 1993 and multiplied by the number of registered pupils at the grant–maintained school in receipt of free school meals on a date determined by the Secretary of State.

Under regulation 12, the Secretary of State may (as he could under the previous regulations) determine as the maintenance grant for a school which becomes a grant– maintained school in the financial year in respect of which the determination is made, an amount which is the sum of the amounts determined in accordance with regulations 13(1) and 14(1), less an amount determined in accordance with regulation 14(2) (where applicable), rather than an amount determined in accordance with regulation 4. Before doing so, however, he is required to consult the relevant authority and the governing body of the school. Regulation 13 incorporates changes reflecting the changes to regulation 10 referred to above.

Regulation 15 provides that any amount required to be determined by the Secretary of State under Part II of the Regulations is to be determined by him on the information available to him on the relevant date. Under regulation 15 the relevant date is either the 31st March immediately preceding the financial year in respect of which the determination of maintenance grant is made, or such other date as may be determined by the Secretary of State in the case in question.

Regulation 16 provides for the apportionment of maintenance grant where a school becomes grant–maintained otherwise than at the beginning of a financial year. These provisions have been revised in line with the changes to regulation 10 referred to above.

Regulation 17 provides for the adjustment of maintenance grant in the light of subsequent changes or to correct errors. It also provides for the adjustment of maintenance grant where it appears to the Secretary of State that, by reason of any extraordinary circumstances, the amount of maintenance grant is insufficient to enable the governing body of the school adequately to carry out their functions with respect to the conduct of the school.

Regulation 18 makes provision with respect to the information to be taken into account by the Secretary of State on making a redetermination of the amount of maintenance grant.

Regulation 19 and Schedule 3 specify requirements which may be attached to payment of maintenance grant.

Regulations 20 to 22 and Schedules 3, 4 and 5 make provision for the payment of capital grants and special purpose grants, and the requirements which may be attached to payment of the latter. Paragraph 2(e) of Schedule 5, which enables the Secretary of State to pay special purpose grant to pay for the cost of cover for head teachers to attend meetings or courses, is new.

Regulation 23 provides for the recovery from the relevant authority of amounts corresponding to the amount of maintenance grant payable in respect of a school.

Schedule 1 incorporates amendments which are consequential to the amendments to regulation 10(3).