Agenda item

Report by Kathy Bell (Schools’ Group Accountant), Hywyn Lewis Jones (Education, Economy and Community Group Accountant) and Ffion Madog Evans (Assistant Head of Finance, Accounting and Finance) – Paper to follow

The Schools' Group Accountant apologised that the paper had been distributed late, but it was hoped that the message, about a very complex matter, had come across in a straightforward manner.  Forum Members were guided through the paper which had been produced in response to a request from the Secondary Group, asking for clarification on how funding reached the Council and was then shared. 

The background that led to the situation was outlined, noting that the Welsh Government had announced a 5% increase.  At the end of March, 3% had been offered by the Welsh Government, with a further rise of 1.5% and a non-consolidated 1.5% as the teachers' salaries proposal.

In terms of Cyngor Gwynedd, it was confirmed that 3% had been earmarked in the original budget for teachers' pay rise, but there was a clear gap as the pay rise was 5%.  In response, Cyngor Gwynedd released 1% and, following discussions with the WLGA, Cyngor Gwynedd dealt with the other 1%.

In terms of the 3%, the Welsh Government announced that it would provide a grant - i.e., 1.5% for seven months and a non-consolidated 1.5% for a whole academic year, namely £1.1 million.

In order to close the accounts, it was confirmed that the amount had to be estimated but there was a sense that it had not been sufficient to fill the gap.

It was further confirmed that the settlement was based on data, and funding had reached Cyngor Gwynedd and then the Cyngor would determine the allocation for individual schools based on a formula.  It was noted that every penny had been targeted and reached schools.  The grant was £480,000, namely a permanent 1.5% and one-off £638,000, which was a full grant.  It was noted that there was also an element of a Sixth Form grant.  It was reported that the game changed at each stage and that it was very complex.  Attention was drawn to the side effects, noting that although everyone accepted that a form of allocation was required, that the situation affected staff who were employed by Schools, and not the teaching staff.

It was confirmed that the Authority had allocated the grant based on the 'FTE' staffing level in the formula but there were situations where there was a difference between the number of staff in this formula and how many were employed.  This was elaborated upon noting that the substantial gap was due to the methodology.   It was further enquired about the figure for teaching staff costs and what the Welsh Government had released.  Forum Members were in agreement that it was a very unfair situation. 

The Chair noted that the pay rise in the salaries of ancillary staff had not been met in 2022/23 and that a decision had not yet been made on pay rises.  The Finance Manager noted that a higher percentage had been earmarked for 2023/24 but there was no assurance that it would be sufficient. 

Concern was raised that some schools had balances to be able to absorb the situation and it was questioned whether or not match funding would come to Wales?  It was confirmed that this was a matter for the Welsh Government but there was no obligation for them to do anything.

One Member noted that the Westminster Government had confirmed the pay rise in England, but no funding had been allocated for it, which was again a concern that no consequential funding would reach Wales.

It was questioned how some Organisations received assurance about the level of their budget over 2 to 3 years.  It was noted that no organisation now received assurance - these would only be predictions.  This was elaborated upon confirming that it was not possible to give assurance to organisations as this figure depended on the settlement.

The Cabinet Member for Finance confirmed that the financial forecast for the coming financial year did not look good in terms of Welsh Government.

RESOLVED : to accept the report and to receive an update at the next meeting.