The Schools Forum is scheduled to discuss several key financial and policy matters affecting Manchester's schools. These include the outturn of the Dedicated Schools Grant for the 2025/26 academic year, proposed changes to the financing scheme for schools regarding academy conversion costs, and updates on national reforms concerning Special Educational Needs and Disabilities (SEND) and their funding implications. Additionally, the forum will consider changes to Free School Meal eligibility from September 2026.

Dedicated Schools Grant Outturn 2025/26

A significant topic for discussion is the Dedicated Schools Grant (DSG) outturn for the 2025/26 academic year. The report indicates an overall overspend of £29.175m, bringing the cumulative DSG deficit to £59.220m. The majority of this overspend, £29.269m, is attributed to the High Needs Block (HNB). The report notes that while the government has announced potential support of up to 90% of accumulated deficits, this is contingent on the approval of a Local SEND Reform Plan. The statutory override, which excludes DSG deficits from councils' wider financial position, has been extended to March 2028, offering some short-term protection. However, 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 will 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 follows an approval by the Council's Executive in March 2026. The proposed amendment would allow for charges to be recouped from a school's final budget share payment before conversion. A schedule of charges has been agreed, with amounts varying based on school type, ranging from £7,000 for Voluntary Aided Schools to £10,000 for Community and Voluntary Controlled Schools. Consultation with maintained schools on this proposal has taken place, with five responses received.

SEND Reforms and Funding Implications

The meeting agenda includes an update on national developments in Special Educational Needs and Disabilities (SEND) reforms, as outlined by the Department for Education (DfE) in February 2026. These reforms aim to create a more inclusive education system with increased investment and a focus on early intervention. Local Authorities are required to develop a Local SEND Reform Plan, and Manchester has drafted its plan, which has received positive initial feedback from DfE advisors. The report details several key funding streams announced to support these reforms, including Experts at Hand (EAH) and SEND Transformation Funding, the Inclusive Mainstream Fund, and the Inclusive Early Years Fund. Manchester has been awarded £5.2m for EAH and transformation funding for 2026/27. The report also addresses the High Needs Block (HNB) deficit grant, where Manchester could receive up to £53.3m in government support, subject to the reform plan's approval.

Changes to Free School Meals from September 2026

The forum will be updated on the national expansion of Free School Meals (FSM) eligibility, which will take effect from September 2026. This policy aims to address child poverty and increase access to nutritious meals, with an estimated 500,000 additional pupils becoming eligible nationally. The key change is the removal of the £7,400 earnings threshold for Universal Credit recipients, meaning all children in households receiving Universal Credit will be eligible. However, it is noted that these newly eligible pupils will not attract Pupil Premium funding. The expansion will be supported by a dedicated FSM Expansion Grant, allocated at a per-pupil rate of £295 for the period September 2026 to March 2027. Manchester, which already has a high proportion of pupils eligible for FSM, anticipates a significant increase in demand.