The Schools Forum of Shropshire Council met on Thursday 21 May 2026 to discuss the Dedicated Schools Grant (DSG) monitoring for the 2025-26 financial year, including significant overspends in the High Needs Block. The forum also reviewed the proposed Schools Block for 2026-27 and considered updates on various development grants.

Dedicated Schools Grant Monitoring 2025-26

A key focus of the meeting was the monitoring of the Dedicated Schools Grant (DSG) for the 2025-26 financial year. The report indicated a significant in-year deficit of £28.090m within the centrally retained DSG. When added to the deficit carried forward from the previous year (£17.566m), the cumulative deficit for 2026-27 was projected to be £45.655m.

Within the centrally controlled High Needs Block, an overall expenditure of £76.287m (including place funding) resulted in an in-year deficit of £29.795m against the allocated budget of £46.491m. This overspend was attributed to several areas:

• Top-up funding for Maintained Schools: An overspend of £14.504m was reported, with £6.979m specifically relating to top-up funding for mainstream schools. This increase was linked to a rise in requests for Education, Health and Care (EHC) Needs Assessments and the issuing of EHC plans, as well as increased capacity in SEND hubs.
• Top-up funding for Special Schools: An overspend of £6.907m was noted. This was partly due to changes in top-up funding levels for two Shropshire special schools, aligning with a strategy to build capacity within local special schools and reduce reliance on independent provision. The full-year impact of an increase in pupil numbers at Keystone Special School also contributed.
• Post-16 Further Education Colleges: An overspend of £2.565m occurred against a budget of £1.859m. This was influenced by the accounting of some 2024-25 invoices in the current financial year and the presence of a few high-cost placements at an independent specialist post-16 provider.
• Top-up funding for Non-Maintained and Independent Providers: An overspend of £11.390m was recorded against a budget of £15.016m. This significant pressure was driven by a sharp year-on-year increase in demand for independent special school placements and a more frequent use of independent alternative providers, particularly for post-16 students.
• SEN Support Services: An overspend of £0.754m was reported, primarily due to increased staffing costs, including the use of agency workers, to manage the rising demand for support.

The report highlighted that Shropshire is the 50th worst-funded Local Authority (LA) for High Needs on a per-pupil basis nationally. Members expressed concerns about structural underfunding and the rising complexity of needs.

The report also detailed the Early Years Block, which showed a provisional underspend of £1.393m against a budget of £44.151m. This underspend was noted across under-2s entitlements, 2-year-old funding, and Early Years SEND Support payments.

The report recommended that the Schools Forum note the monitoring report and approve the addition of the £28.090m in-year overspend to the previous year's deficit, resulting in a cumulative deficit of £45.655m to be carried forward into the 2026-27 financial year.

High Needs Stability Grant

A presentation was scheduled to cover the High Needs Stability Grant. This grant is intended to address deficits accrued by Local Authorities up to the end of the 2025/26 financial year. The government announced that 90% of eligible High Needs deficits would be written off, with Local Authorities expected to fund the remaining 10%. For Shropshire, 90% of the accrued deficit of £45.655m would equate to a grant of £41.090m, leaving a balance of £4.566m to be funded by the Council's General Fund.

DSG Management Plan and 'Experts at Hand' Offer

The forum was scheduled to receive a presentation on the DSG Management Plan and an offer from 'Experts at Hand'. This would likely have provided an overview of strategies and support mechanisms aimed at managing the DSG deficit and improving provision.

Schools Block (DSG) 2026-27

A report detailed the proposed Schools Block for 2026-27. The overall Schools Block was set to increase by approximately £10 million, a 4.55% rise. Funding is generated through Primary (PUF) and Secondary (SUF) Units of Funding, which were projected to increase by 5.06% and 5.1% respectively. Despite a fall in total pupil numbers by 343, historical premises spend continues to be factored into the block calculation. Growth funding was set to rise significantly from £381,000 to £679,000, an 80% increase. However, internal checks indicated that the LA did not require such a high level of growth funding, with the surplus to be recycled back to schools through the National Funding Formula (NFF). The Schools Budget Support Grant and National Insurance adjustment grant were to be subsumed into the DSG, representing £6.6m. The Authority Proforma Tool (APT) indicated that the LA could fully fund the NFF values in 2026-27.

Block Transfer Modelling (Schools to High Needs)

Extensive modelling was presented regarding the transfer of funds from the Schools Block to the High Needs Block. Options analysed included a 0.5% transfer (equivalent to £33 per pupil, resulting in a 1.34% real-terms increase to school budgets excluding grants) and no transfer (equivalent to £116 per pupil, resulting in a 1.86% increase). Option 3, a 1% transfer, was not permissible due to a missed deadline. The modelling indicated that the majority of schools would remain gainers even with a transfer, and minimum per-pupil funding levels were confirmed to be protected. Following discussion, the forum was scheduled to vote on Option 1, a 0.5% transfer, with the explicit inclusion of maintaining national minimum per-pupil funding levels.

Primary and Secondary Development Grant Update

An update was scheduled on the Primary and Secondary Development Grant. This would likely have provided information on the allocation and impact of these grants.

Maintained School Revenue Premises Related Costs

A presentation was planned to address revenue premises-related costs for maintained schools.

Schools Forum Work Programme 2026-27

The forum was scheduled to review its Work Programme for the upcoming year. Updates were expected to include a full review of inclusion grants and their impact, as well as contextual papers requested by members concerning historical funding inequity and modelling explanations.

Local Authority Update

A verbal update from the Local Authority was anticipated.

Communication

The agenda also included a section for communications.

Future Meeting Dates

The dates for future Schools Forum meetings were listed as Thursday 18 June 2026, Thursday 10 September 2026, and Thursday 12 November 2026.