The Brent Council Schools Forum met on Wednesday 18 June 2025 to discuss the Dedicated Schools Grant (DSG) outturn, the DSG Deficit Management Plan, the Scheme for Financing Schools, and updates to Additionally Resourced Provisions and Early Years Banding Review. The forum approved the High Needs Block budgets as set out in Appendix 1 of the report. They also noted the reports on the other agenda items.

Dedicated Schools Grant High Needs Block Budget

Folake Olufeko, Head of Finance at Brent Council, presented a report outlining the proposed Dedicated Schools Grant (DSG) Schools Budget for 2025/26. The Schools Forum noted several key points:

• The Department for Education (DfE) High Needs Block (HNB) funding was confirmed at £90.3 million for 2025/26, a £5.3 million (6%) increase from 2024/25.
• The Schools Forum approved a Schools Block transfer of 0.5%, totaling £1.5 million, bringing the total HNB funding to £91.8 million.
• The DfE will recoup £9.5 million of the total HNB funding to pay academies directly for their base funding, leaving a balance of £82.3 million.
• Top-up banding rates for Pupil Referral Units (PRUs) and Special Schools will remain the same. Mainstream school banding rates were adjusted for rounding, with a negligible financial impact.
• Rates for Additionally Resourced Provisions (ARPs) will remain the same for setting a balanced HNB budget for 2025/26. A consultation on using a Resource Allocation System for funding ARPs and non-statutory early years funding from the HNB is planned for later in Spring 2025.
• Three separate grants received in 2024/25 (TPAG, TPECG, and CSBG) will be paid as a separate CSBG in 2025/26.
• A budget allocation of £0.683 million was set aside to continue passing on the historic Teachers' Pay and Pensions Grant at £660 per place, the same rate provided by the DfE.
• Additional cost pressures seen in 2023/24, for which a 3.4% funding increase (equivalent to the Mainstream Schools' Additional Grant - MSAG) was made available, will continue to be allocated to special schools and PRUs, with £1.2 million set aside.
• There are increases in top-up funding allocations for Special Schools and mainstream pupils both in and out of the borough, totaling £3.6 million of the increased HNB funding, in response to rising demand.
• The HNB budget includes funding for three new ARPs expected to be operational from September 2025, though the start date may be delayed due to building works.
• The budget for funding the education element of placing children in independent residential special schools has been reduced by £0.1 million, in line with current forecasts.
• The recoupment budget, an income budget offsetting expenditure related to pupils from other boroughs, is set at £3.7 million, in line with the current year's forecast.
• A zero-based budget setting approach was applied to the budgets for Special Educational Needs (SEN) Services. An increase from a change in the Speech and Language Therapy contract, funded from this budget, is due to expected increased demand and the extension of the contract to include provisions for children placed in ARPs from April 2025. This area saw a budget increase mainly due to aligning staffing costs to current agreed establishments and allocating a 3% increase in pay award for 2025/26.
• The local authority has been allowed to carry a deficit, with the current deficit at £13.6 million, posing a significant risk against the Council's General Fund reserves.
• Available resources have been allocated within the constraints of funding for SEND provision, with a budgetary gap of £1.1 million mitigated by setting a tight budget against the independent day special budget line, intending to place more children in settings within the borough instead.
• There is a risk of rising inflation for SEND provision in out-of-borough and independent settings, where providers are seeking over-inflationary prices.

During the discussion, Nick Cooper, Head of Special Education Needs, raised concerns about top-up funding rates remaining the same as 2021 and the sustainability of the 3.4% funding increase for Special Schools and PRUs. Nick Cooper also suggested utilising empty buildings for SEND places to mitigate the need for out-of-borough placements and requested a detailed plan for the £44 million capital investment approved in January 2022 for additional SEND places.

In response, Roxanne Glennon, Head of Inclusion, advised that while there had been a 6% funding increase, Education, Health and Care Plans (EHCPs) had increased by 8%, along with the complexities of the children's needs. Folake Olufeko clarified that the 3.4% funding increase was a one-off by the DfE to address additional pressures and had been passed onto Special Schools and ARPs. Nigel Chapman, Corporate Director Children and Young People, added that progress was being made in terms of building works with the additional capacity on track to be open by September 2025.

Councillor Gwen Grahl, Cabinet Member for Children, Young People & Schools, stated that the SEND capital investment programme was a priority, with any empty buildings that were formally educational sites to be retained for educational use. Councillor Grahl also mentioned lobbying efforts with other London councils for an increase in core SEND funding and ring-fenced funding for accessibility adaptations in schools, as well as targeted work to address workforce issues and waiting lists in the NHS for children waiting for assessments for Autism Spectrum Disorder (ASD) or Attention Deficit Hyperactivity Disorder (ADHD).

In Jennifer Cooper's absence, a written question was submitted expressing the National Education Union's (NEU) concerns about the lack of increase in banding funding for special schools despite a 6% increase in the high needs budget. The NEU felt this was unsustainable, given increased costs and the need for adequate staffing ratios, specialised equipment, and additional costs for community engagement. Officers responded that the issues raised had already been addressed in response to Nick Cooper's comments.

The Forum resolved to note the report and approve the High Needs Block budgets as set out in Appendix 1 of the report.

DSG Deficit Management Plan Update

The Schools Forum received an update on the Dedicated Schools Grant (DSG) Deficit Management Plan and Delivering Best Value Programme¹.

Scheme for Financing Schools

The Schools Forum received information on the Scheme for Financing Schools and the Schools Financial Regulations for the financial year 2025-26².

Additionally Resourced Provisions and Early Years Banding Review Update

The Schools Forum were provided with an update on the Additionally Resourced Provisions (ARPs) and Early Years Banding Review³.