Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: February 10, 2026

Purpose: To provide details of the 2026/27 Schools Finance Settlement and approve the local funding formula for early years and schools

Content: The Cabinet has considered an update on the key announcements made by the Department for Education (DfE) on the education funding settlement for 2026/27, and has:-   (1) Noted the details of the Education Funding Settlement for 2026/27.   (2) Approved the early year’s budget as defined at section 3.1 to 3.2 of the main report and the updated local schools funding formula model as outlined in section 3.3 to 3.5 of the main report and summarised in the tables provided at Appendix 1 & 3.   (3) Approved the governance process outlined in Appendix 2 to enable the pass through of funding from the Department for Education (DfE) as, namely to authorise the Director of Education, Work and Skills to approve the entry into of the Early Education and Childcare Provider Agreement and to agree any variations and amendments required to the contractual documentation, in consultation with the Assistant Director of Governance, to give effect to the agreement, and that such agreement will be entered into by either attaching the council’s seal or the electronic signature of the Director of Education Work and Skills.

Alternative options considered: Both the early years and schools local funding formula models are aligned to regulatory controls set by the DfE (i.e. mandatory 97% pass through rates for early years and minimum funding levels (MFLs) for schools, etc).   In relation to the local schools funding formula model for primary schools, the local model used is aligned to a continued phased transition approach towards the national funding formula (NFF) model to avoid significant turbulence in individual school funding allocations across the borough.