The Schools' Forum met on Monday 8 June 2026 to discuss the Dedicated Schools Grant (DSG) outturn and school balances, review options for the 2027/28 school funding formula, and consider recommendations from the High Needs Block Reference Group. Key decisions included noting the current deficit in the DSG, agreeing to consult on school funding formula options, and acknowledging the pressures on the High Needs Block.

Dedicated Schools Grant Outturn and School Balances

The forum received an update on the Dedicated Schools Grant (DSG) position as of 31 March 2026. The deficit in the DSG had worsened to £1,061,000, resulting in a total DSG reserve balance deficit of £4,088,000. This deficit is largely in line with the deficit management plan submitted to the Department for Education (DfE). However, concerns were raised that with flat cash funding for the High Needs Block in 2026-27, it will be challenging to adhere to the deficit management plan. A new High Needs Stability Grant is expected to cover approximately 90% of the overall deficit, amounting to about £3.7 million, leaving £400,000 to be covered by the council.

Regarding school balances, there was an overall increase in reserves of £1.677 million, bringing the total to £6.538 million. This is £3.390 million higher than the schools' budget plans. Three schools were in deficit at the end of the financial year. The report also noted that additional funding from the DfE for Brentford and affected schools, particularly related to the deconstruction of the tower, had impacted the final reporting of balances.

2027/28 School Funding Formula Options for Consultation

The Schools' Forum was asked to agree on options for consultation regarding the school funding formula for 2027/28. The DfE is expected to finalise parameters for local funding formulae later in the summer, with a continued move towards the National Funding Formula (NFF). The Minimum Funding Guarantee (MFG), which protects schools from significant year-on-year funding decreases, is expected to remain at a maximum of +0% per pupil.

Three options were proposed for consultation with primary and secondary headteacher groups:

• Option 1: Move a further 10% towards the NFF factor values, representing the minimum move required by the DfE.
• Option 2: Move a further 15% towards the NFF factor values.
• Option 3: Move a further 20% towards the NFF factor values.

The forum agreed to note the new Free School Meals Expansion Grant for 2026/27, which will provide funding to support additional costs arising from the expansion of free school meals to all households receiving Universal Credit. The grant will be allocated based on the increase in eligible pupils recorded in the October 2026 census compared to the October 2025 census.

Recommendations from the High Needs Block Reference Group

The forum received a summary of the response to the government's SEND reform consultation. While there was broad support for the direction of reform, significant caution was raised regarding delivery risks, particularly concerning funding sufficiency, workforce capacity, and implementation sequencing. The High Needs Block Reference Group (HNBRG) emphasised that reform must improve the lived experience of children and young people with SEND.

Concerns were raised about the financial implications of the reforms, with a risk that if early intervention is not sufficiently funded, unmet needs could fall to schools, increasing pressure and undermining inclusion. The HNBRG also highlighted workforce challenges, especially in recruiting and retaining educational psychologists and therapists, and the need for clarity on Individual Support Plans (ISPs) and complaint processes.

The report also provided an update on Parkwood Hall Co-Operative Academy Special School. Discussions were ongoing regarding the transfer of commissioning responsibility to Kent County Council (KCC). A key issue is the difference in pension fund contribution rates, which could cost Parkwood Hall an unaffordable £200,000. The proposed solution is for Parkwood Hall to remain within the RBKC pension fund after the transfer. The DfE has committed to reopening its workbook in March 2027 to increase commissioned places at Parkwood Hall.

School Place Planning

An update was provided on school place planning, highlighting continued surplus places in the primary sector and the associated financial and operational risks. An independent external review was commissioned to inform future school organisation and sufficiency planning. This review will help identify strategic planning needs and potential cost-saving recommendations. The cost of this review, up to £15,000, will be de-delegated from schools' budgets in 2027/28.

Independent Partner for School Place Planning Review

The forum discussed the appointment of an independent partner, the ISOS Partnership, to conduct a further review of school place planning. This partnership was selected due to their previous positive engagement and expertise. The work is expected to commence shortly, with initial conversations involving key stakeholders, including the Chair of the Schools Forum, Jagdeep Birdi, and the Chair of the Head's Exec, Sarah Bluett. The ISOS Partnership will present draft reports and recommendations to the forum for discussion and approval. The forum also requested that dot maps be produced as part of this review to visually represent learner demographics and areas of need.

Other Discussions

The meeting also included a discussion on the school funding formula for 2027/28, with options for consultation being presented. There was also a query regarding the reconciliation of maths in Appendix A of a report, which was acknowledged as needing correction. The potential move towards the National Funding Formula (NFF) was also discussed, with assurances that a sudden shift would not create significant volatility.

The meeting was chaired by Jacqueline Verdy, Chair of the Forum. Attendees included various headteachers, governors, local authority councillors, and council officers such as Shelley Duffy, Assistant Director of Education, and Nicola Martin-Francis, Senior Finance Manager.