The Brent Schools Forum met on 11 November 2025 to discuss the Dedicated Schools Grant (DSG) budget monitoring report, funding updates for 2025/26, and other financial matters. The forum was also scheduled to note the forward plan of items for future consideration.

Here's a breakdown of the key topics that were scheduled to be discussed:

DSG Budget Monitoring Report and Funding Updates 2025/26

The Schools Forum was scheduled to receive an update on the projected financial position for the 2025/26 financial year, based on data up to the end of September. The report, prepared by Nigel Chapman, Corporate Director Children, Young People and Community Development, included a detailed budget breakdown and forecast by funding blocks.

The report highlighted a £1.2 million decrease in the overall DSG allocation since January 2025, which was attributed to an in-year adjustment by the Department for Education (DfE) in July 2025. This adjustment included a £0.5 million increase in the High Needs (HN) Block funding and a £1.7 million decrease in the Early Years Block. The report stated that the council was planning to increase and maximise take up of the local offer, with its Best Start in Life planning and the new Early Years strategy.

The DSG forecast reflected a £2.7 million deficit, against grant funds of £250.8 million, mainly due to pressures from the High Needs Block. It was noted that the cumulative deficit stood at £13.6 million at the end of the 2025/26 financial year, and was projected to increase to £16.3 million. This forecast did not include potential additional pressures within post-16 education budgets.

Schools Block

Of the total £298.1 million Schools Block budget allocated to Brent by the DfE, £168 million was recouped and allocated directly to academies. £1.4 million was transferred to the High Needs Block, and £2.6 million was deducted for National Non-Domestic Business Rates. The remaining £126 million was directly allocated to Brent maintained schools and to fund centrally retained items, including the growth fund. The Schools Block was forecast to break even.

High Needs Block

The High Needs budget, excluding the proportion allocated to academies, was £82.6 million, including a £1.4 million transfer from the Schools Block. Place funding of £9.7 million for academies has been recouped from the Block and allocated directly to providers. The report noted a £51,000 in-year adjustment by the DfE in July 2025 to increase the High Needs funding for children from other local authorities attending schools in Brent, and an additional £0.43 million funding for special free school places in Brent.

The report stated that the growth in Education, Health & Care Plans (EHCPs) has continued at a rate comparable to previous years.

Between January 2025 and September 2025, there was a 7% (8% between January 2024 and January 2025) increase in children and young people with an EHCP, with the number increasing from 3791 to 4050 over this period.

Significant pressures remain within the High Needs Block, including rising costs associated with independent, residential and out of borough placements, as well as the growth in associated costs of increase in EHCPs outstripping increase in funding.

The £2.7 million in-year deficit against the High Needs Block was mainly due to an increase in the expected costs of educating Brent children out of borough and in residential and independent settings, totalling a projected £4.4 million. The forecast also included £121,000 uplifts to the top up rates paid to Additional Resource Provisions (ARPs), as agreed by the Schools Forum in June 2025.

The council continues to monitor its High Needs Block management plan, which outlines a series of long-term actions aimed at bringing the cumulative deficit under control.

Early Years Block

The Early Years Block allocation reduced by £1.7 million following the completion of the January 2025 census. The census showed a reduction in take-up of the 3 and 4-year-old universal entitlement, a small increase in 3- and 4-year-old additional 15 hours entitlement for eligible working parents, and a reduction in take-up 2-year-old entitlements. There has also been a clawback of £88,700 from the initial supplementary funding allocation for Maintained Nursery schools. The Local Authority is not proposing to recover this clawback from its Maintained Nurseries for this financial year.

At this stage, the forecast for the Early Years Block indicates a break-even position.

The DfE has announced a standalone grant, Early Years National Insurance Contributions (NIC) and teachers' pay grant (EYNTPG), of £40 million for the financial year 2025/26, aimed at supporting public sector early years settings with increased staffing costs. Brent has been allocated £0.279 million, which will be paid in full to childcare providers.

Central Block

The Central Block of the DSG (£2.4 million) funds central services for schools. This includes a set contribution towards pension strain costs for former school employees of £0.21 million, which is a long-term annual commitment. The Central Block is currently forecast to break even.

National Funding Formula Update

The DfE has confirmed that the structure of the Schools National Funding Formula (NFF) will remain unchanged for 2026/27.

In June 2025, the government announced that from September 2026, Free School Meals (FSM) eligibility will be extended to all children in households receiving Universal Credit. For the 2026/27 financial year, the DfE has confirmed that no changes will be made to the NFF to reflect this policy. Instead, the additional funding required to support the FSM expansion will be provided through a separate grant.

From April 2026, the DfE will implement significant reforms to the DSG Early Years Block. Funding for all early years' entitlements will be based on termly headcount submissions rather than the January census, and the minimum pass-through rate to providers will increase from 96% to 97%.

SEND Capital Project

The Schools Forum was scheduled to receive an update on the £44 million capital investment plan approved by Cabinet in January 2022 for additional SEND places.

According to the update, Elsley ARP, Newfield ARP, Carlton Vale ARP, Kilburn Park ARP, Preston Park ARP, Newman CC ARP, London Road SEND School and Fryent Primary ARP have been completed. St Margaret Clitherow ARP is in construction, Woodfield Expansion has a contractor to be appointed in October 2025, and St Gregs ARP is part of the DfE SRP school rebuild. Wembley Primary School and Mount Stewart Schools withdrew from their respective ARP projects, and Phoenix Arch Expansion and TVS Expansion were moved to Phase 2 SEND.

Forward Plan

The Schools Forum was scheduled to note the forward plan of items for future consideration, including:

• DSG Schools Block budgets 2026/27
• DSG Early Years Block budgets 2026/27
• Brent Special Schools' banding review
• DSG High Needs Block budgets 2026/27
• DSG High Needs Block Deficit Management Plan update
• Scheme for Financing Schools & Schools' Financial Regulations