The Lewisham Council Schools Forum met to discuss the Dedicated Schools Grant (DSG), a work plan for the coming year, and premature retirement and redundancy costs for schools. The forum was also scheduled to welcome new representatives and receive a verbal update on the High Needs Block.

Dedicated Schools Grant (DSG)

The Schools Forum was scheduled to discuss the Dedicated Schools Grant (DSG) ¹ outturn position for 2024/25, including school balances, and receive a DSG funding update for 2025/26.

The report pack included a summary of the cumulative DSG position:

It was noted that the cumulative DSG position stands at £18.5m.

The Schools Forum was asked to note the contents of the report, with a particular focus on the pressure on the DSG High Needs Block, the surplus balance position for schools, and the provisional Schools Block position. The Schools Forum was also asked to note the updated DSG position, recognising the ongoing pressure on the High Needs Block, and that the provisional Early Years block will require updating after validation of the 2024/25 pupil data.

The report pack also stated that the final outturn position shows an overspend of circa £3.0m on High Needs.

The Schools Forum was asked to note this report with particular concerns regarding the pressure on the High Needs Block and to agree to receive regular updates, to agree to the continuation of the working group, and to recognise the need to spend within the High Needs block as a collective responsibility between Lewisham, Schools Forum and Schools.

The report pack also included a table noting the draft schools' balances position for 2024/25, which showed a reduction in overall balances from £13.0m to £9.9m, a net reduction of £3.1m.

The report pack also stated that there are 25 schools in deficit with a total value of £11m, and that there are 17 schools with a surplus, the total of which is £14.2m.

The Schools Forum was also scheduled to note the following with regards to the 2025/26 Dedicated Schools Grant:

• Schools block is mainly based on the funding allocation to school and will therefore be spent to balance.
• Central Schools Services Block funding is reduced year on year by 20%.
• High needs block funding shows an overspend position of circa £2.5m.
• Early Years figure has been updated by the DfE following the implementation of the 9 months to 2 year strategy which commenced in September 2024.

The Schools Forum was also scheduled to be updated on government and grants, including the National Insurance contributions (NICs) grant, the schools budget support grant (SBSG), the core schools budget grant (CSBG), the early years National Insurance contributions and teachers' pay grant (EY NTPG), and the primary PE and sports premium funding.

Premature Retirement and Redundancy Costs

The Schools Forum was scheduled to discuss a report seeking to provide clarity about how the costs associated with premature (including ill-health) retirement and redundancy are met.

The report pack stated that early retirement costs should be charged to the school's delegated budget, and that, in exceptional circumstances, the Local Authority has to agree otherwise, for costs to be centrally funded.

The report pack also stated that redundancy costs may only be met from the school's budget share if the authority has good reason to deduct those costs (or any part of those costs) from the school's budget share, and that Lewisham expects schools to manage their staffing and budgets responsibly, both in the short and long terms, with an expectation that redundancy should be the last resort.

The report pack further stated that in exceptional circumstances a school may request support from the Local Authority with ill-health retirement costs, but that approvals of such costs place a strain on the General Fund and will result in reduced services for all schools and will therefore only be approved in exceptional circumstances and where there is good reason to do so.

Schools Forum Work Plan

The Schools Forum was scheduled to review and approve the proposed schedule of future meeting dates and the work programme for the 2025/26 financial year. The report pack included a table showing the proposed dates for Schools Forum meetings and High Needs Working Group meetings.

The report pack stated that each Local Authority is required to operate a Schools Forum, and that the Department for Education (DfE) has published good practice guidance.

The report pack also stated that Schools Forum has noted the now ongoing pressure on the High Needs Block, and in response to this agreed a High Needs Working Group and mitigation plan, and that Lewisham Council is working with the DfE as part of the Delivering Better Value programme ².

Other Business

The agenda included welcoming new representatives: Manda George, reelected Primary School Headteacher representative, Increase Esoe, new Primary School Headteacher representative, Colin Ngan, new Primary Governor representative, Daisy Hooper, new Primary Governor representative, Catherine Van Rooyen, new Special School Governor representative, and Mickey Kelly, new Secondary Governor representative.

The agenda also included apologies and acceptance of apologies, declaration of interests, and matters arising.