The Schools' Forum is scheduled to meet on Monday 16 November 2026 to discuss a range of financial and strategic matters affecting schools in the Royal Borough of Kensington and Chelsea. Key topics include the Dedicated Schools Grant budget, school balances, and an independent review into future school place planning. The forum will also consider options for the local funding formula for the 2027/28 academic year.

Recommendations from the High Needs Block Reference Group

The Schools' Forum is scheduled to consider recommendations from the High Needs Block Reference Group. This report summarises discussions regarding ongoing pressures within the High Needs Block, the financial position for 2025/26 and forecasts for 2026/27, and options for future budget planning. A central issue highlighted is the continuing demand across the Special Educational Needs and Disabilities (SEND) system, coupled with increasing complexity and provision costs. The report also details the implications of the High Needs Stability Grant, RBKC's approved SEND Reform Plan, and an update on the proposed transfer of Parkwood Hall Academy Special School. The High Needs Block Reference Group (HNBRG) met on 19 October to review the financial position and underlying causes of pressure, noting a forecast in-year deficit of approximately £2.2 million for 2026/27. The report indicates that while the High Needs Stability Grant is expected to cover 90% of the eligible High Needs DSG deficit accrued to 31 March 2026, a residual historic deficit and the forecast in-year deficit represent a combined pressure of approximately £2.6 million. The HNBRG also discussed workforce capacity constraints on inclusion and proposed seeking views from headteachers on expenditure management options.

Dedicated Schools Grant Budget Monitoring 2026/27, Forecast School Balances and Review of Excessive School Balances

This report provides an update on the revised Dedicated Schools Grant (DSG) allocation, budgets, and forecasts for 2026/27. It also presents information on estimated school balances and the draft outcome of a review into the potential clawback and redistribution of excessive balances. The total DSG allocation for 2026/27 is £91.649 million. The report highlights a projected year-end DSG position with an overspend of £2.112 million, primarily within the High Needs Block. This overspend is attributed to increased numbers and costs of Education, Health and Care (EHC) plans, tuition, and placement costs, exacerbated by a flat cash allocation for the High Needs Block in 2026/27. The cumulative DSG deficit is forecast to increase to £2.521 million by the end of 2026/27, after accounting for the DfE's High Needs Stability Grant. The report also details forecast school balances, indicating a reduction in the total reserves held by schools by March 2027. It notes that four schools are forecasting deficits by the end of 2026/27, and support will be provided to these and other schools at risk of deficit. The report also outlines the process for clawbacks and redistribution of excessive school balances, with indicative figures presented.

Independent Review into Future School Place Planning

An independent review into future school place planning in the Royal Borough of Kensington and Chelsea is scheduled for discussion. The review addresses the challenge of falling school rolls and its implications for schools' financial viability and the quality of education. It notes that while efforts have been made to reduce surplus capacity since a previous review in 2020, the underlying demographic challenge persists, with projections indicating a further loss of primary pupils by 2029/30. The review proposes a strategic approach and recommendations to shape future decision-making, aiming to ensure the financial viability of schools by 2030-2035. Key themes for a shared vision for the school system include preserving a diverse ecosystem of schools, maintaining a broad educational offer, maximising community assets, ensuring an inclusive system, and fostering collegiate leadership. The report defines a 'viable' school and proposes a risk matrix to identify schools at greater risk of financial pressure and surplus capacity. It outlines a range of options for less viable schools, from stabilising individual schools and partnerships to co-location and integration with wider services, and ultimately, amalgamation, closure, and conversion of school sites. The report suggests a three-stage process and timeline for action, aiming to identify preferred options for at-risk schools by the end of the 2026/27 school year.

2027/28 Dedicated School Grant Position and Local Funding Formula

This report addresses the delayed information regarding the 2027/28 schools block of the Dedicated Schools Grant (DSG) and presents options for the local funding formula to calculate individual school budgets. The Department for Education (DfE) has delayed the publication of the notional schools and high needs national funding formula (NFF) allocations for 2027/28. The report outlines funding adjustments to be made to the DSG, including the incorporation of the School Budget Support Grant 2026 (SBSG 26) and reductions to teachers' pension employer contributions. It also details funding implications arising from the expansion of free school meals. The forum will consider three options for the local funding formula, each involving a further move towards the NFF factor values, with the Minimum Funding Guarantee (MFG) set at +0% per pupil. The options differ in the percentage of movement towards the NFF, with Option 1 representing the minimum required by the DfE. Consultation with primary and secondary headteacher groups has taken place, and the forum is asked to agree which option is the most suitable, with officers recommending Option 1 due to its balance of principles and slightly lower total MFG. The report also outlines the next steps for finalising school funding for 2027/28, including decisions on de-delegation items.