The Devon Education Forum met on Wednesday 18 March 2026 to discuss significant financial updates, including Dedicated Schools Grant (DSG) overspends and the transition to new government funding arrangements. The forum also endorsed a revised framework for assessing and funding Education, Health and Care Plans (EHCPs) and approved the Education Quality and Inclusion (EQI) Core Offer for schools.

Finance Update and Dedicated Schools Grant (DSG)

The forum received a comprehensive update on the financial position of the Dedicated Schools Grant (DSG), which is forecasting an overspend of £61.8 million for the current financial year, representing a net in-year overspend of £17.8 million against the budgeted £44 million. Key pressures identified include SEN Mainstream, tutoring costs, and independent special schools. The cumulative DSG deficit stands at £221.7 million.

A significant point of discussion was the impending end of the government's Safety Valve Programme on 31 March 2026. This programme has helped manage high needs deficits by allowing them to be kept off local authorities' formal balance sheets. From 1 April 2026, a new High Needs Stability Grant will be introduced, covering 90% of the deficit identified as at 31 March 2026. For Devon, this means the council will need to contribute £27.2 million towards the deficit. The forum noted that from 2028/29, SEND spending is expected to be covered within the government's DEL budget, meaning local authorities will no longer be expected to fund future SEND costs from general funds.

Members expressed hope that these government proposals would lead to a more financially sustainable position for Devon, but acknowledged uncertainty regarding the next two financial years, with a potential £70 million cost to the council until the 2028/29 changes take effect. The importance of data sharing to improve inclusion and increase SEND capacity in mainstream settings was highlighted as a way to reduce High Needs Block costs.

The forum also discussed the 0.5% Schools Block funding transfer to the High Needs Block, which was initially agreed to support the Safety Valve programme. Given the programme's cessation, the Schools Finance Group (SFG) requested that this funding be reallocated to schools to support inclusion and SEND. Officers advised that further clarity was awaited from the government regarding funding from 1 April, but this would be discussed further.

The forum noted the month 10 DSG monitoring position and the current Safety Valve / DSG management plan position.

High Needs Funding Framework Review Update

The forum endorsed the revised EHCP Banding Framework and the proposed funding values for Mainstream EHCPs. This revised framework is a structured, needs-led assessment model designed to replace the current provision-led approach. It is based on six domains of need, assessed across Levels 0–4, which are aggregated to determine a band from 1 to 10.

The new framework aims to improve consistency and transparency in funding decisions, ensuring that funding more accurately reflects the level and impact of need described in EHCPs. It is intended to strengthen the ability of mainstream provision to meet the needs of children with SEND. The framework was co-designed through engagement with SEND operational teams, Educational Psychologists, and wider stakeholders across the Devon SEND system, including schools and parents.

A phased implementation is planned, beginning with new EHCP assessments from April 2026. The revised framework represents a significant uplift in mainstream funding, intended to support schools in meeting a broader range of needs. The financial impact of this transition has been modelled, indicating an additional cost pressure within the High Needs Block in the coming years. The framework's impact will be closely monitored and reviewed.

Education Quality and Inclusion Offer (to Schools)

The forum endorsed Devon County Council's Education Quality and Inclusion (EQI) Core Offer for Schools and the direction of travel for school improvement for maintained schools. The EQI team's core offer is a locality-based, preventative partnership with schools, focusing on inclusive practice, improved attendance, and reduced exclusion. Each school is allocated an Inclusion Partner to act as a key professional link with the local authority, supporting schools in strengthening inclusive leadership, using data effectively, and accessing timely support.

The report also provided an update on the de-delegated offer for maintained schools, outlining how this contributes to a coherent, locality-based approach to inclusion, attendance, and school improvement. This includes school-led improvement initiatives, locality engagement, support for new headteachers, and named locality teams. Members commented on the pressing need for developing inclusion, noting that schools had received funding for this in October 2025 and expressing concern about potential future lack of support if progress was not made.

Inclusion and Learning Update

The Head of Education provided an update on a range of inclusion and learning issues. This included the consultation on the government's 'Every Child Achieving and Thriving' white paper, the success of Devon's Free School Meals Auto-Enrolment process which has generated £5 million in additional Schools Block funding, and a review of Devon's governance and strategic oversight.

Members recognised Devon's ongoing commitment to SEND and inclusion improvements, aligning with legislative changes. It was suggested that the Devon Education Forum (DEF), as a statutory body with elected members, could benefit from a task and finish group to review its structures and report back.

The forum decided to establish a task and finish group to review DEF structures and report back on options.

Schools Finance Group (SFG) Minutes

The forum considered the minutes of the SFG meeting held on 4 March 2026. A key discussion point was the 0.5% Schools Block funding transfer to the High Needs Block. Given the cessation of the Safety Valve Programme, SFG requested that this funding be reallocated to schools. Officers advised that further clarity was awaited from the government regarding funding from 1 April.

The forum decided that a report on the 0.5% Schools Block funding transfer would be made to SFG prior to consideration at the next DEF meeting, and received the SFG minutes.

Standing (and other) Groups

The forum received minutes from the School Organisation, Capital and Admissions (SOCA) group meeting held on 3 March 2026. Key issues noted included the determination of admission arrangements for 2027-28, with 94% of first-choice secondary school places allocated. The council is strategically considering the impact of demographic changes on the sustainability of small rural schools. The report also highlighted a significant flooding event at Tipton St John Primary, posing a safeguarding risk, and the ongoing joint response to the fire at The Promise School. The School Rebuilding Programme 2026 application window was also noted.