The Schools Forum meeting on 26 March 2026 discussed the 2026-27 school budgets, including updates on central provisions, individual school budgets, and early years funding. A significant portion of the meeting was dedicated to the High Needs Block, addressing the substantial deficit, government funding, and the implications of the new SEND White Paper.

Schools Budget Update

The Schools Forum received an update on the 2026-27 school budgets. The report detailed that the allocation for growth and falling rolls for the 2026-27 financial year is £3.4 million, with £2.7 million retained centrally for commitments under infant class size and exceptional growth fund policies, as well as falling rolls criteria. Any underspend from this allocation will contribute to the repayment of the Dedicated Schools Grant (DSG) deficit, in line with the agreed deficit management plan.

The education functions levy for maintained schools has been finalised at £66.30 per pupil. The increase from the November estimate is attributed to a genuine fall in pupil numbers. Individual school budgets are based on the national funding formula, with a 0% minimum funding guarantee. To ensure affordability, gains have been capped at 2.78%. A summary comparing the 2026-27 school budgets with those of 2025-26 is included in Appendix 1 of the report.

Regarding early years funding, 2026-27 marks the first full year of the expanded entitlement for working parents. The base rates have been set at £5.93 per hour for three- and four-year-olds, £8.17 per hour for two-year-olds, and £10.37 per hour for under-twos. A contingency fund, equivalent to 0.97% of the early years block, has been established to manage fluctuations in demand. The early years block will also contribute £2.1 million to the Special Education Needs Inclusion Fund.

High Needs Block including Deficit Management Plan

The meeting addressed the significant financial pressures within the High Needs Block. The Quarter 4 forecast for 2025-26 indicated an overspend of £45 million, consistent with previous reports. Demand for high needs provision continues to exceed capacity, with approximately 10,390 Education, Health and Care Plans (EHCPs) in place, an increase of 1,730 from the previous year and 48% higher than three years ago. This surge in demand is particularly impacting the specialist independent sector, with placements rising to around 900, an increase of 300 over three years, representing the largest budget pressure.

The Dedicated Schools Grant (DSG) reserve has fallen into deficit, starting 2025-26 at £53.6 million and projected to reach nearly £100 million by year-end. Without intervention, the High Needs Block deficit is forecast to reach between £85 million and £150 million by 2030-31, with an accumulated DSG deficit potentially exceeding £500 million.

The government has announced a High Needs Stability Grant, intended to cover 90% of historic SEND deficits, subject to conditions including an approved local system reform plan. However, details on payment timings and further support for deficits arising in 2026-27 and 2027-28 are still awaited.

Staffordshire's High Needs Block allocation for 2026-27 is £156 million, an increase of approximately £12.3 million (8.6%) compared to 2025-26. However, the report clarified that the majority of this increase is due to the annualisation of legacy grants, effectively making it a cash-flat settlement and £7 million lower than anticipated. None of this additional funding will be used to repay historical deficits.

The meeting also discussed the government's Schools White Paper and SEND consultation, which proposes a more inclusive, mainstream-first approach with a focus on early intervention and consistent support packages. The paper reserves EHCPs for the highest-need pupils, with other needs to be managed through individual support plans. It also aims to address financial pressures caused by independent specialist sector placements.

The proposed budget allocations for the 2026-27 High Needs Block were presented, totalling £159.6 million after a 0.5% transfer from the Schools Block. Special school budgets will be set with a 0% minimum funding guarantee.

An update on Section 19 provision and cost recoupment was provided, detailing that since September 2025, 184 referrals for individual pupils had been received, with schools agreeing to contribute to 30% of these cases.

The Enhanced Assess, Plan, Do, Review (EAPDR) process has seen a 14% increase in requests compared to the previous year, with 17% of EHCP needs assessments involving EAPDR. Assessments with EAPDR involvement were completed within 20 weeks in 65% of cases, compared to 33% without EAPDR involvement. Staffordshire Enhanced District Inclusion Support (SEDIS) teams are now operational across all eight districts, with 95% of schools reporting positive experiences with the support.

Plans for Enhanced Resource Provision (ERB) in mainstream schools are progressing, with expressions of interest closing on 17 April 2026.

Steve Barr raised concerns about the impact of the remaining 10% of the High Needs deficit, given that approximately 90% was expected to be written off. It was explained that the management of future deficits for 2026-27 and 2027-28, potentially totalling £130 million, remained uncertain and would influence how the remaining 10% of the current deficit would be handled, likely through savings or borrowing.

Steve Swatton queried the significant reduction in the top-up budget for special schools from £24.9 million in 2025-26 to £9.4 million in 2026-27. It was explained that this change was due to the way budgets were set following a cash-back settlement from the government, with overspends in mainstream, special, and independent provision allocated in a 3:2:1 ratio according to the DSG management plan.

The Assistant Director for Inclusive Education and Learning reported that work on the Education Banding Tool (EBT) remained on hold due to the system migration to Liquid Logic. Resources had been redirected to ensure the successful implementation of the new system, with a bedding-in period expected to extend into 2027. It was confirmed that existing EBT rates would continue to apply for currently funded children until wider structural changes were introduced.

Laura Slinn inquired about budget planning for EBT proposals given the uncertainty around funding. The Head of SEND clarified that Enhanced Resource Base (ERB) funding was based on place funding plus matrix, and EBT was being used as an indicative measure for assessing need rather than a direct funding mechanism.

Notices of Concern and Licensed Deficit Agreements

Flash Ley Primary School had its Notice of Concern removed as it was able to set a balanced budget for the next three years. The report noted that it is not possible for a school to have both a Notice of Concern and a Licence Deficit Agreement simultaneously.

Date of Next Meeting and Work Programme

The next Schools Forum meeting is scheduled for Thursday, 9 July 2026, via Microsoft Teams. Future meetings are planned for 12 November 2026 (in person), 28 January 2027 (via Teams), and 18 March 2027 (via Teams).