The School and Early Years Finance (England) Regulations 2023

The sparsity factor

22.—(1) In determining budget shares for primary schools (other than special schools, pupil referral units, and nursery schools), a local authority must ascertain and take into account in its formula the following factors.

(2) In respect of all primary schools to which paragraph (3) applies, other than those which are middle schools or all-through schools, an amount (“final value”) calculated in accordance with paragraphs (4) to (6).

(3) This paragraph applies where—

(a) in respect of those pupils for whom the school is their home school, the number which represents the average of the road distances between each pupil’s home and their second closest compatible school is greater than 80% of a distance determined by the local authority, which must not be less than two miles, and the same distance must be applied to all such schools; and

(b) the number which represents the average size of a year group at the school (derived by dividing the number of pupils by the number of year groups) is less than a number determined by the local authority as applying to all such schools, which must be no more than 21.4.

(4) First, the year-group weighting is calculated in accordance with whichever one of the following methods the local authority prefers—

(a) a value of 1, with each school being allocated the same weighting;

(b) a value of the amount (1 – A/B); or

(c) a value determined as follows—

(i) if A is less than 0.5 x B, the value of 1;

(ii) if A is equal to or more than 0.5 x B, the value of 1 x (1 – ((A – (0.5 x B)) / (0.5 x B))).

(5) Next, a distance weighting is calculated in accordance with whichever of the following methods the local authority prefers—

(a) a value of 1, with each school being allocated the same weighting; or

(b) a value determined as follows—

(i) if D is equal to or greater than C, the value of 1;

(ii) if D is less than C but greater than 0.8 x C, the value of 1 – (C – D) / (0.2 x C).

(6) The final value is the amount given by multiplying the year-group weighting, the distance weighting and the lump-sum funding for sparsity determined by the local authority and that lump sum must not exceed £100,000.

(7) The local authority must use the same method of calculating the final value in accordance with paragraphs (4) to (6) in respect of all schools to which paragraph (3) applies.

(8) For the purposes of paragraphs (2) to (7)—

• A is the number which represents the average size of a year group at the school (derived by dividing the number of pupils by the number of year groups);

• B is the number determined by the authority in accordance with paragraph (3)(b);

• C is the number determined by the authority in accordance with paragraph (3)(a);

• D is the number which represents the average road distance for the school (calculated by identifying all the pupils for whom the school is their closest compatible school and calculating the average road distance from these pupils’ home postcodes to their second closest compatible school).

(9) Where paragraph (10) applies in respect of secondary schools, primary schools which are middle schools and primary schools which are all-through schools, an amount (“final value”) calculated in accordance with paragraphs (11) to (13).

(10) This paragraph applies where—

(a) in respect of those pupils for whom the school is their home school, the number which represents the average of the road distances between each pupil’s home and their second closest compatible school is greater than 80% of a distance determined by the local authority which must not be less than—

(i) two miles in respect of middle schools;

(ii) two miles in respect of all-through schools; and

(iii) three miles in respect of secondary schools other than middle schools or all-through schools; and

(b) the number which represents the average size of a year group at the school (derived by dividing the number of pupils by the number of year groups) is less than a number determined by the local authority, which must be no more than—

(i) 69.2 in respect of middle schools;

(ii) 62.5 in respect of all-through schools; and

(iii) 120 in respect of secondary schools other than middle schools or all-through schools,

and the same number must be applied to all the schools of each type listed in this paragraph.

(11) First, the year-group weighting is calculated in accordance with whichever one of the following methods the local authority prefers—

(a) a value of 1, with each school being allocated the same weighting;

(b) a value of the amount (1 – A/B); or

(c) a value determined as follows—

(i) if A is less than 0.5 x B, the value of 1;

(ii) if A is equal to or more than 0.5 x B, the value of 1 x (1– ((A – (0.5 x B)) / (0.5 x B))).

(12) Next, a distance weighting is calculated in accordance with whichever of the following methods the local authority prefers—

(a) a value of 1, with each school being allocated the same weighting; or

(b) a value determined as follows—

(i) if D is equal to or greater than C, the value of 1;

(ii) if D is less than C but greater than 0.8 x C, the value of 1 – (C – D) / (0.2 x C).

(13) The final value is the amount given by multiplying the year-group weighting, the distance weighting and the lump-sum funding for sparsity determined by the local authority and that lump sum must not exceed £100,000.

(14) The local authority must use the same method of calculating the final value in accordance with paragraphs (11) to (13) in respect of all schools to which paragraph (10) applies.

(15) For the purposes of paragraphs (9) to (14)—

• A is the number which represents the average size of a year group at the school (derived by dividing the number of pupils by the number of year groups);

• B is the number determined by the authority in accordance with paragraph (10)(b);

• C is the number determined by the authority in accordance with paragraph (10)(a);

• D is the number which represents the average road distance for the school (calculated by identifying all the pupils for whom the school is their closest compatible school and calculating the average road distance from these pupils’ home postcodes to their second closest compatible school).