The Schools' Forum met on Thursday 18 January 2024 to discuss the 2024/25 Dedicated Schools Grant (DSG) and agreed to recommend the approval of the grant allocation and its distribution methodology. The Forum also decided to support Scenario 2 for Early Years funding and Option 4 for the Schools Block funding distribution.

2024/25 Dedicated Schools Grant (DSG)

The Schools' Forum discussed the provisional allocation of the Dedicated Schools Grant (DSG) for the 2024/25 academic year. The grant is divided into four blocks: High Needs, Early Years, Schools, and Schools Central.

Central Schools Block: Funding in this block has decreased as anticipated, with the council contributing an additional £50,000 to support it, bringing the total annual contribution to £560,000. This decrease is expected to continue over the next few years.

Early Years Block: This block has seen a substantial increase of £14.7 million due to new funding streams for under-twos and working parents of two-year-olds, as well as increased hourly rates. The Forum reviewed two modelling scenarios for distributing this funding, ultimately agreeing to support Scenario 2, which does not include a central contingency, as it directs maximum funding to early years settings. The council is required to pass through at least 95% of the grant to providers, and Bromley is currently meeting this requirement.

Schools Block: Funding for this block has increased by £11.7 million, with the council adhering to the National Funding Formula (NFF). Local authorities are now required to align more closely with the NFF. The Forum reviewed four scenarios for distributing this funding and agreed to support Option 4, which most closely follows NFF guidelines and provides maximum Minimum Funding Guarantee (MFG) protection. Falling Rolls funding has been removed for 2024/25, allowing more funding to be directly allocated to schools. The council's overall contingency has also been reduced.

High Needs Block: This block continues to face the most significant pressures. While funding has increased, expenditure is rising at a faster rate, leading to an estimated in-year deficit of £5.6 million for 2024/25. The cumulative deficit is projected to reach £16 million by the end of the 2023/24 financial year. The council has been lobbying for additional funding and is exploring ways to reduce the deficit, including reviewing high needs funding and estates, and aiming to secure more local specialist provision to reduce reliance on costly independent out-of-borough placements.

A significant concern raised by Forum members was the 0% increase in funding for Special Schools for 2024/25, contrasting with increases for mainstream schools. This disparity was highlighted as inequitable, particularly given that special schools serve the most vulnerable children. The Forum requested that these concerns be formally noted and communicated to the Children, Education and Families Policy, Development and Scrutiny Committee.

The Schools' Forum resolved to recommend that the Portfolio Holder approve the Dedicated Schools Grant allocation for 2024/25 and the methodology of its distribution, taking into account the views expressed by the Forum.

Dates of Next Meeting

The date of the next Schools' Forum meeting was confirmed as Thursday 11th July 2024, with subsequent meetings scheduled for Thursday 17th October 2024.