The Schools Forum of Manchester Council met on Monday 15 June 2026 to discuss the financial outturn of the Dedicated Schools Grant (DSG) for the 2025/26 academic year, proposed amendments to the Scheme for Financing Schools regarding academy conversion costs, and the implications of national SEND reforms and changes to Free School Meals eligibility.

Dedicated Schools Grant Outturn 2025/26

A key focus of the meeting was the financial position of the Dedicated Schools Grant (DSG) for the 2025/26 academic year. The report indicated an overall overspend of £29.175 million, bringing the cumulative DSG deficit to £59.220 million. The majority of this overspend, £29.269 million, was attributed to the High Needs Block (HNB). The report noted that while government support of up to 90% of the deficit may be available, subject to the approval of a Local SEND Reform Plan, a remaining deficit of approximately £5.9 million would still need to be funded. The statutory override, which excludes DSG deficits from the council's wider financial position, has been extended to March 2028, providing some short-term protection. However, significant uncertainty remains regarding the long-term funding of SEND demand.

Amendment to the Scheme for Financing Schools: Recovery of Academy Conversion Costs

The Schools Forum was scheduled to consider a proposed amendment to the Scheme for Financing Schools to enable the Local Authority to recover eligible costs incurred when a maintained school voluntarily converts to academy status. This proposal followed an approval by the Council's Executive on 13 March 2026. The report outlined a schedule of charges for conversions, with amounts varying based on school type, ranging from £7,000 for Voluntary Aided Schools to £10,000 for Community and Voluntary Controlled Schools. These charges would be recouped from the school's final budget share payment before conversion. Consultation with maintained schools had taken place, with five responses received and addressed.

SEND Reforms and Funding Implications

The meeting was set to provide an update on national SEND reforms, announced by the Department for Education (DfE) on 23 February 2026, and their funding implications. These reforms aim to create a more inclusive education system with increased focus on early intervention and mainstream capacity. Local Authorities are required to develop a Local SEND Reform Plan, and Manchester had submitted a draft of its plan. The report detailed several key funding streams announced to support these reforms, including the Experts at Hand (EAH) and SEND Transformation Funding, the Inclusive Mainstream Fund (IMF), and the Inclusive Early Years (EY) Fund. Significant capital funding for SEND was also noted. The report highlighted that while the reforms aim to mitigate demand pressures, the continued growth in Education, Health and Care Plans (EHCPs) presents a risk of demand outstripping impact in the short term, potentially creating further financial pressure on the High Needs Block.

Changes to Free School Meals from September 2026

The Schools Forum was also scheduled to receive an update on the national expansion of Free School Meals (FSM) eligibility from September 2026. This policy change, part of wider efforts to address child poverty, will extend FSM eligibility to all children in households receiving Universal Credit, removing the current earnings threshold. This is expected to significantly increase the number of eligible pupils nationally. The expansion will be supported by a dedicated FSM Expansion Grant, allocated at a per-pupil rate of £295 for newly eligible pupils. The report indicated that Manchester, which already has a high proportion of pupils eligible for FSM, could see a further increase of approximately 20-25%. While additional funding is provided, the report noted potential uncertainties regarding its sufficiency and operational challenges for schools.