The Redbridge Schools Forum met to discuss school funding, budget allocations, and financial monitoring, as well as updates to the school organisation plan. The forum was also scheduled to discuss the Dedicated Schools Grant outturn for 2024-25, and the grant allocations for 2025-26. Additionally, the forum was set to review the activities of the High Needs Funding sub-group and the 2025/26 High Needs Block position.

High Needs Block Funding

The Schools Forum was scheduled to discuss the activities of the High Needs Funding sub-group and to review the 2025/26 High Needs Block position. The High Needs Funding sub-group aims to review the impact of current high needs funding allocations and develop new approaches to allocate funding more effectively, with the goal of enhancing value and outcomes for all children and young people with Special Educational Needs and Disabilities (SEND) in Redbridge.

The Schools Forum were to note that Redbridge continues to face increasing financial pressures within the High Needs Block¹. A £5.143m in-year deficit was projected for 2025/26, which will add to the existing cumulative deficit of £0.747m, resulting in an anticipated total cumulative High Needs deficit of £5.889m by the end of 2025/26.

The report pack included a table that compared the allocation before deductions against expenditure for 2022/23 to 2024/25 and anticipated outturn for 2025/26:

School Organisation Plan

The Schools Forum was scheduled to receive a copy of the most recent version of the Redbridge School Organisation Plan. The School Organisation Plan 2025-33 is based on recent trends and on population projections. The report pack noted that reception rolls across schools have been falling and are projected to decline further between now and 2033, in line with current trends for London and neighbouring authorities.

The report pack stated that by 2026/27 the Published Admission Number² will have dropped by 360 places equivalent to 12 classes since the 2019/20 academic year. Despite the published admission number being reduced, there was an expectation of an additional 15 classes worth of surplus places for reception in the borough by 2027/28.

The report pack stated that the decline in primary school enrolments is now shifting to the secondary sector, where consideration should be given to managing PANs.

School Balances

The Schools Forum was scheduled to receive details on the level of school balances as at the end of the financial year 2024/25. As at 31 March 2025, Redbridge maintained schools collectively held revenue balances of £20.529m, a decrease of £3.619 from the previous year. Capital balances stood at £0.442m, a decrease from 2023-24 of £0.794m.

The balance control mechanism sets the threshold of excessive balances at 5% for secondary schools and 8% for primary and special schools. The report pack stated that 41 maintained schools held balances under this threshold, with the remaining 18 holding balances more than this. The total value of reserves over threshold was £0.977m. Two schools have reported a revenue deficit balance as at the end of the financial year 2024/25.

The Schools Forum was scheduled to note that the LA recognises that schools face significant financial challenges in the future due to increasing costs and uncertainty of funding. The LA will continue to monitor school balances during 2025-26 and expect schools to have in place clear plans and intentions for the use of balances within a reasonable timeframe.

School Internal Audit Plan

The Schools Forum was scheduled to note the planned internal audit visits to schools in 2025-26. Internal audit visits to schools serve a vital role in ensuring that public funds are used effectively, risks are managed, and governance is sound. The main purposes of internal audit visits are:

• Financial Assurance
• Governance Oversight
• Risk Management
• Compliance Checks
• Value for Money
• Support and Improvement

The report pack noted that one visit has been completed to date in 2025-26 at Trinity Catholic High School in May 2025. Another four visits have been planned for 2025-2026 at:

• Wanstead Church Primary (Booked October 2025)
• St. Augustine's RC School (To be confirmed Nov 2025 – Mar 2026)
• St Bede's RC Primary School (To be confirmed Nov 2025 – Mar 2026)
• Gordon Primary (To be confirmed Nov 2025 – Mar 2026)

Dedicated Schools Grant Outturn 2024-2025 and DSG Allocations 2025-2026

The Schools Forum was scheduled to note the content of the Dedicated Schools Grant (DSG) Outturn and movement of reserves for 2024-25, the brought forward reserve and outturn position, by block for 2024- 25, the brought forward reserve for 2025-2026 and the DSG allocation, by block for 2025-26.

The DSG is the main source of funding for Schools and Early years providers in the Borough. It is a ring-fenced grant from the Department for Education (DfE) with defined conditions, only to be used to fund Schools and a few elements of LA expenditure in line with regulations. The DSG is allocated to each LA by the DfE in four blocks:

• schools block for 5-16-year-olds
• early years block for 2-, 3- and 4-year-olds
• high needs block for pupils and students from 0 to 25 years old with special educational needs
• central school services block for LA central functions on behalf of pupils in state funded education.

The report pack noted the value of the reserves carried forward to 2024/25, by block:

School Grants (non DSG)

The Schools Forum was scheduled to receive an overview of revenue grants (non DSG) for FY 25/26. The grants set out in the report pack are received by the LA and then passed to schools based on DfE allocations/notifications. The Schools Finance team at the LA manage this process.

The report pack included information on:

• Pupil Premium Grant (PPG)
• PE and Sports premium for primary schools
• Universal Infant Free School Meals (UIFSM)
• Mayor's Universal Free School Meal
• School Budget Support Grant (SBSG)
• National Insurance Contributions Grant
• Core School Budget Grant (CSBG)
• Sixth Form Funding
• Post 16 Grant
• 16 to 19 Teachers Pension scheme employer contribution grant
• 16-19 Bursary Fund
• Post 16 National Insurance contributions grant

Maintained Schools Budget Monitoring

The Schools Forum was scheduled to receive an update on the submissions made by maintained schools, including the year end return, EOY3 and 3-year budget template. Redbridge maintained schools are required to submit quarterly returns highlighting their in year actual position, in-year forecasted position and reserve balance as at year-end 31 March. They are also required to submit an annual budget plan and 2-year forecast to the Local Authority no later than 1st May of that financial year.

Employer's National Insurance Contribution

The Schools Forum was scheduled to receive information regarding the impact of the increase in Employers' national insurance on maintained schools. From April 2025, the employer's national insurance has increased from 13.8% above £9,100 per annum threshold to 15% above £5,000. The Department for Education (DfE) has announced that they will provide support to maintained schools with the increase to employers' National Insurance Contributions (NICs) from April 2025.

The report pack included a table providing a breakdown of the anticipated increase in national insurance costs for FY 25/26 against provisional grant allocations for maintained schools. The analysis has been completed for schools that use Data plan or LBR payroll only (51 schools in total). External payroll schools have not been included.

School Leases Update

The Schools Forum was scheduled to receive a background on the change in process for lease arrangements and reporting within schools and the process that this entails. Under International Financial Reporting Standard 16 (IFRS16), which came into effect for UK maintained schools on 1st April 2024, all leases previously classified as either an operating lease or a finance lease, are now treated as borrowing for accounting purposes. This means that schools must recognise most leases on their balance sheets, recording both a right-of-use asset and a corresponding lease liability.

The report pack noted that all 59 maintained schools were contacted by email in 2nd December 2024 to request all information on outstanding or new leases within their school. As of 23rd June 2025, 46 schools had provided satisfactory responses, with 13 schools not having yet submitted the requested information.

School Contingency Fund and Schools Causing Concern

The Schools Forum was scheduled to receive information on the amount of the de-delegated Schools Causing Concern budget and Contingency Fund budget for 2025-2026 and how the budget is utilised to assist with London Borough of Redbridge maintained schools that are causing concern either at risk of or in deficit budget and / or are experiencing or at risk of experiencing falling rolls in pupil numbers.

The de-delegation Support for Schools Causing Concern fund is to provide:

• support in teaching and learning for maintained schools in an OFSTED³ category or for those schools at risk of being categorised
• increase senior leadership capacity for maintained schools that are causing concern
• support investigations into potential disciplinary proceedings in schools
• fund expenditure that the governing body incurred, where it would be unreasonable to expect that it would meet from the school's budget resources
• provide support to finance staff in schools that are in financial difficulty

The de-delegation Support for Contingency fund is to:

• hold a budget for circumstances which were unforeseen when the schools budget share was initially determined
• any underspend in the fund will be re-allocated to the Schools Central Contingency Fund in 2025/26

The report pack noted that at 31st March 2025, two schools held deficit balances and ongoing discussions have been taking place with both schools. A further seven schools are projected to go into deficit within 2025-26 and are therefore classed as schools causing concern.

Early Years Block Updates

The Schools Forum was scheduled to receive an update on the underspend in the Early Years Block 2024/25, the Early Years Expansion Grant (EYEG), and the Early Years National Insurance and Teachers Pay Grant (EY NTPG).

A forecast underspend in the DSG Early Years Block was reported to Schools Forum in March 2025. The final position for 2024/25 is subject to DfE mid-year adjustment, expected by end of July 2025. The outturn for 2024/25 is as follows:

The DfE is providing an additional, one-off grant to local authorities in 2025/26 to support the early years sector as it prepares to deliver the final phase of expansion of the working parent entitlement from September 2025. The allocation for Redbridge is £369,110. The total EY NTPG allocation for Redbridge in 2025/26 is £271,677, with local authorities receiving payment in September 2025.