The Schools Forum of Staffordshire Council met on Thursday 09 July 2026 to discuss the council's school budget, the high needs block, and various funding allocations. The forum agreed to add local government reorganisation to the work programme as a standing item and discussed the ongoing management of the high needs deficit through a reform plan.

High Needs Block and Deficit Management Plan

A significant portion of the meeting was dedicated to the escalating deficit within the high needs block, which is forecast to reach £78 million in 2026-27. This overspend is attributed to a substantial increase in Education, Health and Care Plans (EHCPs), with numbers rising by over 1,600 in the last 12 months. The council's Dedicated Schools Grant (DSG) reserves are now in deficit by £94.4 million.

Staffordshire County Council has submitted a Special Educational Needs and Disabilities (SEND) reform plan to central government for approval. If approved, this plan could make the council eligible for the High Needs Stability Grant, potentially reducing the DSG deficit by up to 90%. The reform plan focuses on four key areas: strengthening inclusion across educational settings, improving access to specialist support and local placements, enhancing systems leadership and local partnerships, and fostering inclusive cultures and behaviours. The council is also working on developing a new special school and enhanced resource-based provisions.

Concerns were raised about the ongoing deficits and the potential impact on debt recovery plans. If the High Needs Stability Grant is received, the deficit would reduce by around £85 million, leaving a remaining deficit of approximately £9-10 million, necessitating continued deficit management. The transition to a new management system, Liquid Logic, is planned for the next financial year, with continued school involvement in the development of funding levels for SEND provision.

Schools Budget Final Out-turn

The final out-turn position for the 2025-2026 school budget revealed an overall overspend of £40.8 million. The majority of this overspend, £43.6 million, was in the high needs block, though this was partially offset by savings in other areas. The DSG reserve is now in deficit by £94.4 million. School reserves at the end of 2025-2026 stood at £15.6 million, a decrease of £200,000 from the previous year. This figure reflects a reduction due to schools converting to academies, offset by an increase in the balances of remaining maintained schools. Seventeen schools were identified as having a deficit revenue balance totalling £5.6 million, and the council continues to work with these schools.

Notices of Concern and Licence Deficit Agreements

The forum received an update on notices of concern and licence deficit agreements for Staffordshire maintained schools. These agreements are now issued annually and supersede previous arrangements. The report detailed schools in an actual deficit position, those with a licence deficit due to a budgetary deficit in year one, and those showing a deficit in year two. Discussions highlighted the impact of recent information on teacher pay awards and grant allocations, with the council planning to work with schools to assess these effects. A request was made to circulate an appendix with financial figures and percentages for comparison with previous meetings, which was agreed.

Growth Fund and Falling Roll Fund Allocation

An annual report was presented on the allocation of growth funding and falling roll funding. The report outlined how funding had been used to support primary schools benefiting from infant class size legislation, exceptional basic need growth, and the post-opening costs of new free schools. It also detailed the allocation of falling roll funding to two schools. A point was raised regarding the impact of lower birth rates on school budgets and how this exacerbates the overall issue of funding shortages. The council reiterated that these budgets are for exceptional needs or declines and that nearly all falling roll funding had been allocated based on the agreed formula.

Wraparound Childcare and Breakfast Clubs

An update was provided on wraparound childcare, indicating that while funding was available for training and support for providers, no additional funding was provided for the creation of new places. The council is reviewing remaining applications for funding. It was agreed that an update on the implementation of the Children's Well-being in Schools Act, which mandates free breakfast clubs in state-funded schools for pupils from reception to year six, would be included in the work programme for the next term's meeting.

Local Government Reorganisation

Councillor Steve Barr requested that local government reorganisation be added as a standing item to the work programme. This was agreed, acknowledging the significant implications of the upcoming changes to local authorities and the need for ongoing updates, even if there is no new information to report.

Next Meeting and Work Programme

The next Schools Forum meeting was scheduled for Thursday, 12 November, and will be an in-person event. The wraparound childcare item will be added to the work programme for this meeting.