The Cornwall Schools Forum was scheduled to discuss the Dedicated Schools Grant (DSG) funding settlement for the 2026/27 academic year and a proposed policy on school balances. The meeting also included updates on membership and progress against the forum's work plan.

Dedicated Schools Grant (DSG) Funding Settlement 2026/27

The report scheduled for discussion provided an update on the 2026/27 Dedicated Schools Grant (DSG) settlement from the Department for Education (DfE). The DSG is a ring-fenced government grant used to fund schools, early years provision, and high needs services for children and young people with additional needs. The settlement for 2026/27 showed an overall increase of 5.3% compared to 2025/26, with significant rises in the Early Years Block (19.6%) and High Needs Block (4.0%). However, the report noted that high needs funding was effectively frozen at the 2025/26 rate pending the release of government SEND reforms.

The report detailed the provisional DSG allocations for Cornwall, outlining figures for the Schools Block, Central Services Block, High Needs Block, and Early Years Block. It highlighted that Cornwall's per-pupil funding in the Schools Block ranked it as the 91st lowest-funded authority nationally. The report also indicated that schools were likely to see an average increase of 2% per pupil due to the inclusion of previously separate grant streams. The Central School Services Block, which covers costs like Premature Retirement Costs (PRC) for teachers, was set to experience a reduction, although Cornwall had requested a limited reduction based on approved funding for PRC costs. The Early Years Block saw a significant increase due to the full rollout of new entitlements for children aged 9 months to 2 years and the extension to 30 hours for working parents.

The report also touched upon the financial implications for schools, noting an increasing number of maintained schools forecasting deficit budgets. It mentioned that the DfE intended to consult on early years funding arrangements in the summer of 2026.

School Balances Policy

A draft policy on the management of surplus revenue balances for local authority maintained schools was scheduled for consideration. The policy aimed to define an acceptable level of reserves, with the Local Authority deeming balances up to 15% of the Dedicated Schools Grant (DSG) funding (or Nursery funding for Nursery Schools) as acceptable. The key purpose of the policy is to encourage schools to maximise the spending of their revenue resources within the year they are allocated, ensuring funds are used effectively to enhance educational experiences and outcomes for children.

The policy outlined the principles for managing school finances, allowing for flexibility in planning over more than one year for specific purposes such as capital works, spend to save strategies, contract reviews, expansion of pupil numbers, and managing periods of uncertainty or change. It stipulated that schools holding reserves above the 15% threshold would need to submit a scheme for the use of these reserves, and the Local Authority would engage in a conversation with the school's leadership to understand the rationale. The report detailed the circumstances under which excess revenue balances could be held, including managing financial difficulties, exceptional circumstances, revenue contributions to capital schemes, and spend to save initiatives. It also specified the evidence required for such schemes, such as extracts from Governing Body minutes and development plans. The process for verifying and approving schemes was also outlined, with certain schemes to be referred to the Schools Forum for consideration.

Membership Update and Progress Against Work Plan

The meeting was also scheduled to receive a verbal update on the membership of the Cornwall Schools Forum. Additionally, a verbal update was planned regarding the progress made against the forum's work plan. This would include information on items added to future agendas, such as the Music Hub end-of-year report, and the need for a working group for contingency funds.