The Schools Funding Forum met to discuss the financial health of local schools, including Dedicated Schools Grant balances and the approach to schools facing deficits. The forum also reviewed the Section 251 budget submission for 2026-27 and considered the significant financial pressures within the High Needs Block.

School Funding Forum Meeting Dates 2026-27

The forum was scheduled to consider proposed dates for its meetings throughout the 2026-27 academic year. Department for Education (DfE) regulations require the forum to meet at least four times annually. For the previous academic year, the Havering Schools Funding Forum met six times, and a similar pattern was proposed to ensure timely discussions on funding matters, consultation requirements, and budget-setting decisions. The proposed dates included options in October, November, January, February, and June. Members were invited to provide feedback on the proposed dates, meeting times, locations, and the balance of in-person versus remote meetings.

Dedicated Schools Grant - Year End Balance 2025-26

A review of the Dedicated Schools Grant (DSG) for the 2025-26 financial year was on the agenda, focusing on the year-end expenditure and the treatment of any deficits or surpluses within the DSG blocks. The report indicated a carry-forward deficit of £68.973 million from 2025-26 into 2026-27. This marked the seventh consecutive year of a deficit in the combined total of activities funded by the DSG, primarily due to High Needs costs rising faster than funding. The report detailed underspends in the Early Years and Schools Blocks, contrasted with a significant overspend in the High Needs Block. The DfE's High Needs Stability Grant was mentioned as a mechanism to cover 90% of the cumulative deficit at March 2026, with the remaining 10% falling to the Local Authority. The introduction of the Inclusive Early Years Fund for 2026-27, aimed at strengthening inclusive practice and support for children with special educational needs and disabilities (SEND), was also noted.

Section 251 Budget Submission 2026-27

The forum was presented with the provisional Section 251 budget statement for the 2026-27 financial year. Local authorities are required by Section 251 of the Apprenticeships, Skills, Children and Learning Act 2009 to submit these budget statements to the Department for Education. The statements provide a clear overview of planned spending on the schools' budget, de-delegated items, high needs budget, early years budget, and central provision, funded by both the DSG and the council's general fund. The submitted statements for Havering were undergoing assurance checks by the DfE. Detailed tables outlined planned expenditure across various categories, including Early Years, Primary, Secondary, SEN/Special Schools, AP/PRUs, and Post School provision, as well as central support services and children's services.

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

This report provided an analysis of the revenue balances carried forward from the 2025-26 financial year for LA maintained schools. For the fifth consecutive year, the overall school revenue balances had reduced, with an increase of £3.1 million in the overall deficit position for maintained schools. The report detailed the total value of school surpluses and deficits, showing a significant increase in schools' deficit positions. It also categorised schools based on their surplus and deficit percentages and the duration of these balances. The authority's approach to schools facing financial difficulties was outlined, including categories for assessing financial health and the required actions for schools in different positions. The LA's support mechanisms for schools, such as Deficit Recovery Plans and cash advances, were also described.

High Needs Funding 2026-27

The High Needs Block was identified as facing significant financial pressures, despite Havering's commitment to mainstream inclusion. The national SEND Reform Programme, along with new DfE funding streams like the Experts at Hand programme and the Inclusive Mainstream Fund, were presented as opportunities to enhance local provision and improve outcomes while addressing the long-term sustainability of the High Needs system. Havering had submitted its draft Local SEND Reform Plan, which received positive feedback from the DfE. The borough was allocated £2.35 million through the Experts at Hand and Local Authority SEND Transformation Fund and £2.09 million through the Inclusive Mainstream Fund for schools. Access to the High Needs Stability Grant, worth approximately £63 million, was contingent on the approval of Havering's Local SEND Reform Plan. The report highlighted the expectation that local authorities would demonstrate how SEND reform would improve outcomes and create a more financially sustainable system, with a focus on earlier intervention, stronger mainstream inclusion, and reduced reliance on expensive independent and out-of-borough placements.

School Funding Forum Meeting Dates 2026-27

The forum was scheduled to discuss and agree the proposed dates for its meetings during the 2026-27 academic year. This agenda item aimed to ensure that the forum met the DfE's requirement of at least four meetings per year and to facilitate timely discussions on funding matters.

Other Business

The agenda included a slot for Any Other Business, allowing for the discussion of any urgent or relevant matters not covered in the preceding agenda items.