The Schools Funding Forum met on Thursday 11 June 2026 to discuss the Dedicated Schools Grant year-end balance for 2025-26, the Section 251 budget submission for 2026-27, and the financial health of local authority maintained schools. The forum also reviewed the approach to supporting schools facing financial difficulties and considered the ongoing pressures and reforms within High Needs funding.

School Funding Forum Meeting Dates 2026-27

The forum was scheduled to discuss and agree the proposed dates and times for its meetings during the 2026-27 academic year. It was suggested that meetings would continue to follow a pattern of six meetings per year, commencing at 8:00 am, with a mix of in-person and remote sessions. Members were invited to provide feedback on the proposed dates, times, and locations to ensure good attendance and support timely discussions on funding matters.

Dedicated Schools Grant - Year End Balance 2025-26

A report was presented detailing the year-end position of expenditure from the Dedicated Schools Grant (DSG) for the 2025-26 financial year. The overall DSG balance carried forward into 2026-27 was a deficit of £68.973 million. This deficit has increased from the previous year, primarily due to rising High Needs costs exceeding funding. The report outlined underspends in the Early Years, Schools, and Central School Services blocks, which were insufficient to offset the significant overspend in the High Needs Block. The implications of the DSG deficit statutory override, which allows deficits to be carried forward without impacting general reserves until March 2028, were also discussed. The report noted the introduction of the Inclusive Early Years Fund (IEYF) for 2026-27, intended to help early years providers strengthen inclusive practice and support children with special educational needs and disabilities (SEND).

Section 251 Budget Submission 2026-27

The provisional Section 251 budget statement for the 2026-27 financial year was presented for noting. This statement, required by the Department for Education (DfE), provides a clear overview of the local authority's planned spending on its schools' budget, de-delegated items, high needs budget, early years budget, and central provision. The document detailed planned expenditure across various categories, including individual school budgets, high needs place funding, top-up funding for maintained schools and academies, and various central services. The report also included detailed breakdowns of funding for Early Years entitlements, including base rates and supplements for deprivation, quality, and other factors, as well as calculations for pass-through rates to providers.

LA Maintained Schools Balances 2025-26 and Approach to Deficit Schools

This report provided an analysis of the revenue balances of local authority maintained schools carried forward from the 2025-26 financial year. It indicated a continued trend of decreasing overall school revenue balances, with an increase in the overall deficit position for maintained schools. The report detailed the total value of school surpluses and deficits, the number of schools in surplus and deficit by percentage banding, and the duration of these deficits. The authority's approach to schools facing financial difficulties was outlined, including a categorisation system for budget plans and submissions, and the process for developing and agreeing Deficit Recovery Plans. The LA's commitment to working with schools to develop sustainable financial plans was emphasised, with the possibility of issuing a Notice of Concern if regulations are not met.

High Needs Funding 2026-27

The forum was presented with information regarding the significant financial pressures within the High Needs Block, despite Havering's commitment to mainstream inclusion. The report highlighted the national SEND Reform Programme, which aims to create a more inclusive, effective, and financially sustainable SEND system. Havering had submitted its draft Local SEND Reform Plan, which had received positive feedback from the DfE. The report detailed funding allocations through the Experts at Hand (EAH) programme and the Inclusive Mainstream Fund, intended to support earlier intervention, build staff expertise, and strengthen mainstream inclusion. Access to the High Needs Stability Grant, which would cover a significant portion of the borough's historic DSG deficit, was contingent on the approval of the Local SEND Reform Plan. The report noted that future proposals would be considered through the High Needs Working Group and reported back to the Schools Forum. The implications of SEND reform, including potential changes to local High Needs funding arrangements, were to be further considered.