The Education (New Grant-maintained Schools) (Finance) Regulations 1998

Explanatory Note

(This note is not part of the Regulations)

These Regulations replace with modifications the Education (New Grant-maintained Schools) (Finance) Regulations 1997 (“the 1997 Regulations”) which are revoked. The Regulations apply, in relation to the financial year commencing on 1st April 1998 (“the financial year in question”), to new grant-maintained schools situated in England established pursuant to proposals published by the Funding Agency for Schools (“the FAS”) under section 211, or by promoters under section 212, of the Education Act 1996. The Regulations do not apply to such schools established in place of an existing independent school or in connection with proposals for the discontinuance of another grant-maintained school. The Regulations do not apply to grant-maintained special schools.

Part 2 of the Regulations provides for the determination and redetermination of the amount of maintenance grant to be paid to the governing bodies of schools to which the Regulations apply (regulation 4). Maintenance grant is made up of a number of elements. These are essentially the same as in the 1997 Regulations.

Where a new grant-maintained school is established on or before 1st April in the financial year in question, the FAS determine an amount for Direct AMG under regulation 5 in accordance with the local education authority’s scheme for the local management of their schools or, if it would produce a larger amount, under regulation 6. Where a new school is established in September in the financial year in question, an apportionment of the amount that would had been determined under regulation 5 or 6, if the school had been established on 1st April, takes place under regulation 11.

The FAS determine an amount for Central AMG in accordance with regulation 8 and Schedule 1 on the basis of the amount of Direct AMG calculated in accordance with regulation 5 (whether or not Direct AMG for the school was determined under that regulation). The “relevant percentage” is no longer calculated under Schedule 1 on the basis of data from the preceding financial year. A list of percentages is therefore no longer included in a table in that Schedule. The relevant percentage is to be calculated under Schedule 1 on the basis of data from the current financial year. Regulation 12 provides for an apportionment of the amount that would have been calculated under regulation 5 had the school been established on 1st April in the financial year in question. Central AMG is the notional amount representing certain kinds of expenditure for the purposes of the school which, in the case of a school maintained by a local education authority, do not form part of the school’s budget share.

The FAS determine an amount in respect of funding for the employment of teaching staff to make special provision for pupils belonging to ethnic minorities (regulation 9), school meals (regulation 10 with apportionment under regulation 13), contingen cies (regulation 14) and nursery education (regulation 15).

An additional provision to those contained in the 1997 Regulations is that the FAS may reduce the amount of maintenance grant payable in respect of a school to take into account excessive balances carried forward from the previous year (regulation 16).

An additional provision to those contained in the 1997 Regulations is that the FAS may reduce the amount of maintenance grant payable in respect of a school to take into account excessive severance payments to members of staff (regulation 17).

The FAS may revise and redetermine maintenance grant in accordance with regulations 19, 20 and 23. The relevant date for these purposes is determined in accordance with regulations 18 and 25. The Regulations make special provision for redetermination of maintenance grant where it would otherwise be insufficient to enable the governing body of the school adequately to carry out their functions with respect to the conduct of the school (regulation 20), redetermination of grant to reflect local authority capital expenditure from the revenue account (regulation 21) and transfers of site (regulation 24).

The FAS may impose requirements under regulation 26 on governing bodies to whom payments of maintenance grant are or have been made.

Part 3 of the Regulations provides for the payment of capital and special purpose grants and the FAS may also impose requirements on governing bodies to whom payments of capital or special purpose grants are or have been made.

Consequent on section 256 of the Education Act 1996, Part 4 of the Regulations, prescribes the total amount of maintenance grant in respect of a new grant-maintained school which may be recovered by the Secretary of State from the local education authority named in a determination under that section. This does not include grant paid under regulation 21 (capital expenditure from the revenue account).