The Schools Forum of Hammersmith and Fulham Council met on Tuesday 20 January 2026 to discuss and approve the 2026/27 budgets for the Schools Block and the Early Years Block. Key decisions included the submission of the final Schools Block allocation to the Department for Education (DfE) and the confirmation of a 1% transfer from the Schools Block to the High Needs Block. The Forum also approved the proposed Early Years budget, including revised hourly rates and funding structures for various childcare entitlements.

Schools Block Budget and Mainstream Budgets 2026/27

The Schools Forum discussed and approved the final Schools Block allocation of the Dedicated Schools Grant (DSG) for the 2026/27 financial year. This allocation, totalling £127.775 million, is based on October 2025 census data. A key decision was to submit the Authority Proforma Tool (APT) for the recommended model to the DfE, which includes revised uplifted National Funding Formula (NFF) rates and a Minimum Funding Guarantee (MFG) of minus 0.50% per pupil.

The Forum confirmed its agreement to a disapplication request to transfer 1% of the Schools Block to the High Needs Block for 2026/27, amounting to £1.262 million. This transfer, previously approved by the Minister of State, is intended to support the sustainability of the High Needs Block pending government reforms on Special Educational Needs and Disabilities (SEND).

Maintained school representatives agreed to the proposed de-delegation budget of £0.564 million and the Education Functions budget of £0.285 million for 2026/27.

A significant portion of the discussion focused on the proposed approach to ensure the sustainability of statutory trade union facilities and free school meals (FSM) eligibility costs through contributions from school budgets. Concerns were raised by Alex Parker of Lady Margaret School regarding the recoupment of these budgets, particularly from academies that conduct their own FSM eligibility checks. Peter Haylock, Director of Education and SEND, explained that schools benefit from Pupil Premium and FSM funding through the auto-enrolment process, which identifies eligible pupils more effectively than previous opt-in systems. Kathleen Williams of Holy Cross Primary highlighted the impact of this auto-enrolment on primary schools, noting fewer parental applications for FSMs. The Chair emphasised the need for clarity on how pupil FSM eligibility identification impacts schools and where their contributions are directed. It was agreed that while the proposed plans would be implemented for the upcoming year due to time constraints, further details would be provided in a future report. Daniel Cundy, representing AP Academies, questioned the contribution to local authority trade union facilities, with Peter Haylock clarifying it was for a wider, regional trade union team. Tony Burton, Head of Finance - People, confirmed that de-delegated budgets were for maintained schools, but academies and free schools would be invoiced for their contributions. Dave Colins of Brackenbury School raised the issue of liaison with other Local Authorities (LAs) to identify pupils living in different boroughs, and Tony Burton assured that maintained schools would not be asked to contribute more. The Chair suggested a future meeting to examine the implications of funding losses over the coming years.

The Forum resolved to:

• Submit the January 2026 APT to the DfE for the 2026/27 schools budget share.
• Confirm agreement for the 1% transfer from the Schools Block to the High Needs Block.
• Agree to the proposed 2026-27 de-delegation budget of £0.564 million for maintained schools.
• Agree to the proposed 2026/27 Education Functions budget of £0.285 million for maintained schools.
• Agree the approach for statutory trade union facilities and FSM eligibility costs, pending further information and engagement.

Early Years Budget 2026/27

The Schools Forum reviewed and approved the initial allocation of Early Years Block funding for 2026/27, which totals £25.845 million. This budget incorporates extended childcare entitlements for working parents, including those with children as young as nine months old.

Key changes for 2026/27 include an increase in the pass-through requirement to providers to 97%, reducing the proportion available for central expenditure. Funding from the Early Years National Insurance Contributions and Teachers' Pay Grant (EYNTPG) has been integrated into the national average funding rates for all age groups. A shift to a termly funding system, based on termly census headcounts, will align with the DfE's approach.

The proposed hourly rates for providers have been updated:

• 3 and 4-year-olds: The universal base rate will be £8.93 per hour, a 0.68% increase. The extended offer for working parents will also receive £8.93 per hour.
• Two-year-olds: The targeted offer for disadvantaged families and the new working parent entitlement will both receive £12.53 per hour, a 4.59% increase.
• 9 months to 2 years: The new working parent entitlement will receive £17.49 per hour, a 5.49% increase.

The budget also includes provisions for the Disability Access Fund and Early Years Pupil Premium, with increased rates. Maintained nursery schools will receive supplementary funding.

Jane Gleasure of Little People, Early Years PVI, raised concerns about the impact of the termly funding profile on providers, particularly regarding the summer term, where fewer funded weeks would be received despite a longer operational period. Tony Burton, Head of Finance - People, acknowledged this as a challenge for the sector and confirmed that while 38 weeks of funding remain available, the distribution across terms would change. He also confirmed that the budget uses DfE data and that a termly census model will be employed for 2026-27. Officers will work with early years providers to address the implications of the termly funding changes.

The Forum resolved to:

• Note the engagement with schools and Early Years providers.
• Approve the proposed deployment of the central budget and note the impact of the pass-through requirement.
• Note the proposed 2026/27 Early Years budget, including revised rates and formulas.
• Note the change to a termly funding system from April 2026, with funding provided on the basis of 13 weeks in summer, 14 weeks in autumn, and 11 weeks in spring.

Forward Plan

The Schools Forum noted its forward plan, with the next meeting scheduled for Tuesday 3 March 2026, which will include updates on the Dedicated Schools Grant Monitoring and the High Needs Safety Valve.