The Schools Forum of Manchester Council met on Monday 13 July 2026. The meeting agenda included a discussion on the financial health of the city's schools, focusing on school balances and the proposed clawback of excessive funds. The forum was also scheduled to review Manchester's Local SEND Reform Plan, which outlines strategies for improving support for children with special educational needs and disabilities, and to consider the forward plan for future meetings.

Analysis of Excessive School Balances and Clawback

A key item on the agenda was the analysis of school balances for the 2025-26 financial year and the proposed mechanism for clawing back excessive funds. The report indicated that Manchester's maintained schools held an overall surplus of £14.298 million, a decrease of £1.010 million compared to the previous year. However, this reduction was partly due to eight schools converting to academy status, transferring £1.266 million in surplus. When adjusted for these transfers, the remaining maintained schools showed a slight increase in surplus of £156,000.

The report detailed that council-maintained schools are considered to hold an excessive balance if their year-end surplus exceeds 8% of their budget share for nursery, primary, and special schools, or 5% for secondary schools. In 2025-26, the total excessive balances across Manchester schools amounted to £0.787 million. The Scheme for Financing Schools includes a clawback mechanism for schools that have held an excessive surplus for more than two years.

The Schools Forum was asked to consider a recommendation to set the automatic clawback rate for these excessive balances at 100%. This rate, if approved, would become the standard approach for future years. The report identified four schools that met the criteria for automatic clawback in 2025-26, with a total excessive balance of £111,000. The recommendation was that any funds clawed back would be used to offset the deficit in the High Needs Block of the Dedicated Schools Grant (DSG).

Manchester's Local SEND Reform Plan

The Schools Forum was presented with information regarding Manchester's Local SEND Reform Plan, developed in response to national reforms published by the Department for Education (DfE) in February 2026. This three-year plan (2026-2029) aims to address the increasing demand for SEND support, improve outcomes for children and young people, and enhance the financial sustainability of the High Needs system.

The plan's strategic vision focuses on developing an inclusive 0-25 SEND system where needs are met early, locally, and effectively. Key priorities include strengthening inclusion in mainstream settings, improving workforce capacity and capability, increasing confidence among children, families, and stakeholders, and stabilising the High Needs system.

Core components of the reform programme include a shift towards mainstream inclusion, with funding increasingly directed to mainstream settings. The Experts at Hand model is a central delivery mechanism, providing schools with access to specialist expertise such as educational psychologists and speech and language therapists. The plan also emphasises early intervention through integration with Family Hubs and the development of local provision, including inclusion bases and resourced provision.

The report highlighted the significant financial context, noting that as of March 2026, Manchester's DSG High Needs Block deficit stood at £59.2 million. The plan acknowledges that long-term sustainability depends on reducing demand for high-cost provision through early intervention and increased mainstream capacity. Tables within the report projected a substantial rise in the number of children and young people with Education, Health and Care Plans (EHCPs) and the associated financial pressures on the DSG. The plan also outlined implications for schools, which would be expected to take a greater role in meeting SEND needs at SEN Support level and would benefit from increased access to specialist support and additional funding streams.

Forward Plan

The Schools Forum reviewed its forward plan for the 2026/27 academic year. This plan outlined the essential approvals and reports that would be brought before the Forum throughout the year. Scheduled items included updates on the National Funding Formula, SEND Reform and Local Plan updates, the Schools 3 Year Budget Forecast, and DSG monitoring. Future meetings were also scheduled to cover the DSG settlement, de-delegation, school budget monitoring, and outturn reports.