The Lewisham Schools Forum met to discuss an update on high needs, options for de-delegation and funding for Lewisham Learning, and to agree on the principles and approach for the 2026/27 schools funding submission to the Department for Education (DfE).

2026/27 Dedicated Schools Grant (DSG) Mandate

The Schools Forum was asked to agree the principles and approach for the 2026/27 schools funding submission to the DfE. The report pack included a recommendation that the Schools Forum agree to guiding principles including:

• Continuing with the National Funding Formula¹ (NFF) in the deployment of the Schools Block².
  • The exceptional factor submission for St Michael's was scheduled to be advised during the 2026/27 process.
  • The Private Finance Initiative³ (PFI) factor was scheduled to be discussed with schools that have a PFI factor.
• Agreeing to any growth funding to be included on the Authority Proforma Tool⁴ (APT), to determine the amount in the Growth Fund budget to fund incremental support for bulge classes and potentially any unplanned in-year growth/bulges, with any unused funds to be held in the Growth Fund.
• De-delegation to be in line with the current basis plus inflation (where appropriate), noting that the overall value of each de-delegated item will reflect movement in overall primary and secondary pupil numbers.
• Considering options for Minimum Funding Guarantee⁵ (MFG):
  • Option one - MFG set at max 0.0% with any residue to support pressures in the High Needs Block[^7] (HNB).
  • Option two - 0.5% transfer from Schools Block, followed by MFG set at affordability – to a minimum of minus 0.5%
  • Option three - depending on the financial settlement, it may be necessary to provide a hybrid model of options one and two.

The Schools Forum was also asked to note the continuation of financial risk associated with High Needs (demand led), Early Year (EY) (numbers accessing free entitlement), pressure on schools arising from economic challenges and national policy, and to agree to receive further updates as more information is made available at the 15 January meeting.

The report pack noted that the DfE had published the provisional school block funding allocations for the 2026 to 2027 financial year, and that on face value of the increase in funding, most is not new money as most mainly relates to the mainstreaming of grants - for example the Schools budget support grant (SBSG).

The final settlement is due just before the Christmas break, with a submission to the DfE due 22 January 2026, with a Schools Forum meeting scheduled for 15 January 2026 to agree the APT tool for submission.

The report pack stated that the December meeting is commonly used for discussion between the Local Authority and Schools forum to agree the approach to facilitate the finalisation of the APT submission.

The DfE has published that the changes to the NFF factors are related to mainstream schools grants worth £1.24 billion (£772m through the National Insurance Contributions Grant and £465m through the Schools Budget Support Grant) which will be allocated through the NFF by: adding to the baseline increasing the basic per pupil funding, the funding for pupils who have been eligible for free school meals at any time in the last six years (FSM6), the lump sum funding and increasing the minimum per pupil funding.

Each Local Authority (LA) is required to submit their agreed Local Schools Funding Formula to the DfE by 22 January 2025 (primary and secondary). The APT tool submission is mainly based on the Schools Block, however the LA is responsible for ensuring overall affordability across the whole Dedicated Schools Grant (DSG).

The APT modelling tool is provided by the DfE and is largely a pre-populated data modelling tool. Using the APT tool, the LA determines each school's budget share and associated Minimum Funding Guarantee (MFG). The MFG is based on overall affordability and is now confirmed at 0% to minus 0.5% uplift per pupil (based on pupil-led characteristics e.g. Age Weighted Pupil Unit (AWPU), Free School Meals etc). Subject to affordability the council will aspire to achieve as close to 0.0% as possible.

Once the APT is submitted it remains provisional until the DfE has undertaken validation and approved the submission for accuracy and compliance. Special Schools are funded based on their operating model of places and top up. Funding for Special Schools is from the High Needs Block and is not part of the APT reconciliation. Nursery schools, PVIs and the early years component for primary schools are funded from the Early Years Block and are not part of the APT tool process.

There is a legal requirement for all schools to be advised of their budget share by 28 February. It is at this point schools will be formally advised of their delegated budget share. However, to support schools to commence work on their budget plans earlier, the council will share the provisional APT information for each school to note.

Following the Autumn statement the main observations to note are (subject to receipt of the final settlement), that the headlines in the news suggest firstly there is no additional funding for the core schools' budget and secondly Government plans to absorb the £6.3 billion SEND deficits within central budgets. The education secretary has said Government will set out how it intends to fund this at the next spending review in 2027.

For 2026 to 2027 the DfE are not proposing any changes to the schools NFF. The funding for the expansion of FSM entitlement will be provided through a separate grant.

The report pack stated that alignment to the NFF should continue to progress with the principles of the NFF in full, including using all funding values as determined by the DfE. The Minimum Funding Guarantee (MFG) uplift the DfE requirement is that the MFG operates within the parameters of 0% to minus 0.5%. Subject to affordability it is proposed that the formula will endeavour to deliver on or as close to the maximum allowed by the DfE.

Mindful of the pressure on the High Needs Block, the Forum was scheduled to agree to receive 2 (potentially 3) report versions of the APT:

• APT NFF applied at max 0.0%, with any residue requested to support the high needs block to a max of 0.5% allowed transfer.
• APT NFF applied. 0.5% transfer to HNB, determine MFG uplift at affordability.

If appropriate a 3rd option being a hybrid between option 1 and 2.

A request for exceptional factors has been submitted to DfE in respect of Service Charge costs. Previously DfE had approved the disapplication for several years, however as a move towards NFF are revisiting previous approvals. This therefore remains a risk.

The DfE guidance enables Local Authorities to provide services centrally which are funded by a process known as de-delegation. This only applies to mainstream schools and not academies. As such, funding levels agreed will reduce should any school convert following finalisation of the budget process. The de-delegation process must be agreed every year and supported (by means of voting), by the representative of each phase at Schools Forum.

It was proposed that de-delegation continues in line with current levels plus 3.2% uplift where indicated (referencing to mid-level pay awards), and supports the following:

• Administration of Free School Meals £54k plus circa 3.2% = £56k
• Trade union and non-sickness supply scheme (Maternity Fund) (£1m)
• School Improvement as agreed 2 year support (2025/26 was the second year of support). Item elsewhere on the agenda to discuss Lewisham Learning in more detail. £367k Uplift subject to confirmation.
• Schools Contingency to support costs that should not be reasonably incurred by a governing body. (£445k Please note this includes the continuation of the Lewisham schools finance support at £157k – plus 3.2% = £162k).

It was noted that the academy transfers have reduced the value of contingency held. Also, the council will consider if the current rate remained, could the potential be to reduce the value of contingency held, instead of increasing the per pupil rate.

Schools receive funding in line with the NFF. DfE requires LA to determine the Notional SEN. To be clear, this is not additional funding but a recognition of Notional SEN at LA level. Ultimately schools remain responsible for determining their local SEN budget.

There is a requirement for the DSG to spend within the overall affordability. Schools forum will be aware from previous discussions on the pressure, in particular relating to the High Needs Block. The Schools forum was scheduled to receive a verbal update from the High needs Working group meeting.

The Schools Forum was asked to consider a potential transfer of 0.5% from the Schools Block to the High Needs for 2026/27. It should be noted this funding supported the pilot SEN support to schools who have in excess of 5% SEN in their mainstream setting. It also continues to support wider mitigation and early intervention work related to learners with SEND, whilst also helping with managing the high needs block overspend.

To enable this consideration it was proposed that two options are put to Schools forum:

• APT using full funding.
• Impact of transfer of 0.5% to the High Needs Block

At the time of writing the report pack, there had been no confirmation of the EY block. Depending on the final settlement position, Officers will provide recommendations for consideration by Schools forum. This will include an overall uplift based on the current formula allocation.

Lewisham Learning - Options for De-delegation and Funding

The Schools Forum was scheduled to receive a verbal presentation on options for de-delegation and funding for Lewisham Learning.

Update on High Needs

The Schools Forum was scheduled to receive a verbal update on the work undertaken with the High Needs Working Group, including feedback on SEND practice, and SEN Funding Pilot.