The Hammersmith and Fulham Schools Forum met to discuss the Dedicated Schools Grant (DSG) outturn for 2024/25, the early years budget, and the high needs block funding for 2025/26. They were also scheduled to agree the minutes of their last meeting and discuss the academic year dates for 2025/26.

Dedicated Schools Grant Outturn 2024/25

The Schools Forum were scheduled to discuss the Dedicated Schools Grant (DSG) outturn for the 2024/25 financial year. The report pack included a summary of the outturn position, as accounted for by the London Borough of Hammersmith and Fulham (LBHF).

The report noted that many local authorities in England have DSG deficits, often due to pressures on their high needs budgets¹. The government has allowed local authorities to exclude DSG deficits from their main revenue budgets, using a process called 'the statutory override', which has been extended to cover financial years up to and including 2025/26.

The report pack stated that there was a nil variance in the schools block after £0.742m support to the high needs block expenditure. It also noted a favourable position in the early years block, pending an Education and Skills Funding Agency (ESFA) adjustment, with a positive funding adjustment expected.

The summary of high needs block expenditure showed a baseline overspend of £5.254m before mitigations, reduced to £0.963m after mitigations. These mitigations included a £1.179m schools block transfer and £0.960m Safety Valve Funding². The report pack stated that the high needs block is seeing continued pressures from sustained demand, increasing complexity of needs and inflationary impacts.

Early Years Budget 2025/26

The Schools Forum were scheduled to discuss the initial allocation of early years block funding for 2025/26, including the extended entitlements for working parents of two-year-old children and children from age 9 months.

The report pack noted constrained funding growth for 3 and 4-year-olds, with a small increase per hour, but a more significant increase per hour for maintained nursery schools. It also stated that the total central spend was proposed at £0.79m, and that early intervention services and outreach were to be delivered via Hammersmith and Fulham maintained nursery schools via an increase in the lump sum budget provision within the 3 and 4-year-old budget model.

Jane Gleasure, representing Little People, Early Years, enquired how that would be delivered. Michele Barrett, representing Randolph Beresford / Vanessa Nursery, added that there was initial discussion around increasing support in areas that required improvement, and liaison would continue with the private, voluntary and independent (PVI) and childminder sector.

Jane Gleasure noted that they were at a disadvantage compared to maintained schools and maintained nursery schools, facing pressure from inflation and challenges to early years intervention provision in the borough. She was keen to know how funds would be distributed between the PVI and maintained sector and expressed that she would like to be involve in the decision-making process.

Michele Barrett noted that the maintained nursery sector was under a lot of pressure, and many were looking at closures within the next year or so if no change was in place. Schools were running on a small amount of SEND funding due to most of the budget going to the PVI and childminder sector.

High Needs Block 2025/26 Update

The Schools Forum were scheduled to receive an update on the final high needs block allocation of the dedicated schools grant for 2025/26. The report pack stated that the provisional high needs block allocation represented a 7% increase per head of population for 2025/26, and that the minimum funding guarantee for special schools was currently under review locally to meet needs. It was noted that the high needs block continued to face significant pressure.

Alex Parker, an observer, asked which category of the budget covered top-up fundings and the costs for schools which specialised in high needs. He also asked what the SEND Service category covered.

Schools Forum Academic Year Dates 2025/26

The Schools Forum were scheduled to discuss and agree the Schools Forum academic year dates for 2025/26.