The Schools Funding Forum met on Thursday 15 January 2026 to discuss the proposed funding for schools in Havering for the 2026-27 academic year. Key topics included the consultation on schools and high needs funding, the allocation for the Central Schools Services Block, and early years funding rates.

Schools Funding Consultation 2026-27

The forum was scheduled to discuss the consultation on schools and high needs funding for the 2026-27 financial year. This consultation outlined several key points for Havering, including the proposed transfer of funding to the High Needs Block, earmarking Schools Block funding for growth and falling rolls, the full adoption of National Funding Formula factors, and decisions on the Minimum Funding Guarantee (MFG) and gains cap.

The report detailed two potential models for the funding formula: Model A, with a 0.0% MFG and a 0.85% gains cap, and Model B, with a -0.5% MFG and a 0.95% gains cap. Both models presented detailed projections of the impact on individual schools, illustrating changes in per-pupil funding based on pupil numbers and other factors.

A supplementary update provided information on the final Dedicated Schools Grant (DSG) allocations for 2026-27. This confirmed that under Option A (0% MFG), three primary schools were affected, with a total cost of £110,142. The update also revised the transfer to support Growth and Falling Rolls to £1 million, from a previously forecast £530,000. After these transfers, the Schools Block was projected to have sufficient funding for up to a 2% increase for all schools.

High Needs Block Funding 2025-26 and 2026-27

An update was provided on the High Needs Block funding. For the 2025-26 financial year, the latest expenditure forecast indicated an in-year deficit of £31.404 million, leading to a projected overall deficit of £67.740 million. The report noted that this forecast was subject to change as there was still one term remaining and a backlog of assessments.

For the 2026-27 financial year, the indicative allocation for the High Needs Block was published by the Department for Education (DfE) on 17 December 2025. The report highlighted that there was no national increase in funding for this block, and the allocation was effectively the same as 2025-26, adjusted for grant funding. The allocations for Havering, after import and export adjustments but before recoupment deductions, were £49.304 million. The report warned that without further funding, increases in the number of Education, Health and Care Plans (EHCPs) and provision costs could significantly increase the High Needs Deficit.

The High Needs Working Group had been developing a new approach to funding individual children by using banding descriptors with specific funding sums, moving away from funding based on hours. Other areas of work included policy for new Resource Provisions and a co-ordinated approach to Alternative Provision commissioning.

Central Schools Services Block (CSSB) Funding 2026-27

The forum was informed of the final allocation for the Dedicated Schools Grant Central Schools Services Grant (CSSB) for 2026-27. The final allocation was £2,258,312, a decrease of £7,967 from the projected figure. This reduction was due to Havering being a loss-protection authority, meaning it did not receive the full annualised amount of rolled-in grants. The report detailed the proposed use of this funding for ongoing responsibilities, including copyright licences, admissions, and Schools Forum costs, as well as historical commitments such as Schools Partnerships and Schools Causing Concern.

Early Years Funding 2026-27

The meeting included a summary of the indicative Dedicated Schools Grant Early Years Block funding for the 2026-27 financial year. The report outlined the process for determining early years funding rates for the next financial year, including proposed hourly rates for different age groups and funding factors.

The indicative funding allocations for 2026-27 showed an increase in the hourly rate for 3 and 4 year olds to £6.87, a rise of 47p (7.34%), and for under 2 year olds to £12.87, an increase of 0.42 (3.37%). The report noted that the DfE was moving to a termly census for all entitlements to improve funding system accuracy, which was expected to reduce allocations nationally but was being compensated for with an uplift to the 3 and 4 year old rates. The total indicative early years block funding for 2026-27 was £59,890,093, a significant increase of 27% from 2025-26.

The report also detailed the proposed pre-consultation rates for 2026-27, which included adjustments to the base rate, deprivation funding, Early Years Pupil Premium, Disability Access Funding, and SENIF rates. The DfE had incorporated increases to teachers' pay and National Insurance contributions into the hourly funding rates for 3 and 4 year olds. The Local Authority was consulting with providers on these proposed rates, with the final rates to be agreed in February.