Allocating funding and resources

There are two ways to allocate resources and both are used currently.

Individualised funding

In this model, individual needs are assessed and resources allocated accordingly. The model is effective when the needs of individual students are variable and therefore difficult to predict. The Ongoing and Reviewable Resourcing Schemes (ORRS) is an example of individualised funding.

Population-based funding

In this model, funding for a number of students is calculated using a formula and provided as a lump sum to fundholders/providers. Population-based funding works best when funding is allocated to fundholders/providers, like schools, for a large number of students or when the needs of students are relatively similar. The Special Education Grant (SEG) is an example of population-based funding.

Key features of the two allocation methods

Individualised funding Population-based funding
FAIRNESS
Students with the same level of needs get the same level of support
STRONG
Individual assessment against set criteria ensures that students are treated equally.
WEAK
It is not possible to ensure that students with the same needs, but at different schools, will get the same level of resources.
EFFICIENCY
The administration of the funding system is value for money.
MORE EXPENSIVE
It costs more money to make and consider applications from individual students.
LESS EXPENSIVE
It does not cost much to allocate funding using a formula.
PREDICTING EXPENDITURE
The Government can predict expenditure.
ACCESS CRITERIA
Managed through access criteria.
BUDGET CAP
Managed through an overall budget cap.
QUALITY
High quality services are largely a product of attitudes and school capability, but funding can provide incentives for schools to welcome and take ownership of students with special education needs.
GOOD
Good when the process for allocating funding is transparent and involves schools.
RISKS
Risks the funding getting 'lost' in the overall allocation to schools. Can work well with good transparency and accountability.

At the moment the Government uses individualised funding for students with high and very high needs, and population-based funding to schools for students with moderate needs.

Can we predict whether any given school will have a student with special education needs?

Level of special education need of an individual student.