The Bradford Council Schools Forum met on Wednesday 17 September 2025 to discuss the Dedicated Schools Grant (DSG) ¹ settlements and formula funding arrangements for 2026/27, and to review the work programme for the 2025/26 academic year. Members noted the information presented and were invited to attend a 'Formula Funding Working Group' session.

2026/27 DSG Settlements and Formula Funding Arrangements

The Schools Forum received a verbal update on the 2026/27 DSG settlement and formula funding arrangements. Document TB, '2026/27 DSG Settlements & Formula Funding Arrangements,' was presented, summarising the principles, matters, and challenges expected to be addressed in consultations and decision-making regarding DSG formula funding.

The report noted that the 2026/27 DSG budget setting and formula funding round is anticipated to be challenging due to the level of the settlement, year-on-year changes in data, and technical changes to formula funding mechanisms.

Several key principles, matters, and challenges across the DSG and by block for 2026/27 were identified:

• Cross-cutting DSG: Modest annual growth in per-pupil funding is expected in real terms for 2026/27, 2027/28, and 2028/29. The continuing reduction in 3 and 4-year-old early years entitlement and primary-phase pupil numbers from demographic trends will likely reduce the value of DSG budget headroom. The DSG account is forecast to be in deficit at the close of 2025/26 due to overspending in the High Needs Block [^3], and this deficit is expected to increase significantly in 2026/27. [^3]: The High Needs Block is a specific part of the Dedicated Schools Grant (DSG) allocated to support children and young people with special educational needs and disabilities (SEND).
• Schools Block: The DfE has confirmed no technical changes to the operation of the National Funding Formula (NFF) [^4] in 2026/27. The Authority expects to continue mirroring the NFF in 2006/27, subject to affordability. The main challenges for the Schools Block in 2026/27 will be affordability-related, stemming from the overall level of the settlement, the cost of 'data lag' [^5], and the 3-year re-evaluation of NNDR (business rates). [^4]: The National Funding Formula (NFF) is how the government distributes funding to schools in England. It aims to create a fairer, more consistent system of funding allocation based on pupils' needs and school characteristics. [^5]: Data lag refers to the time difference between when data is collected and when it is used to allocate funding. This can create challenges because the data may not accurately reflect the current needs of schools.
• Early Years Block: The DfE will calculate all entitlement funding on a termly census basis from April 2026, which will reduce the in-year flexibility within the Early Years Block. The 96% delegation requirement is increased to 97%, further restricting the central use of Early Years Block funds. The main potential affordability challenge within the Early Years Block will be maximising the rate of funding that providers receive for delivering the 3 and 4-year-old entitlements.
• Central Schools Services Block: No significant technical changes are anticipated for this block in 2026/27, other than the merger of elements of 2025/26 grants. The main challenge to the CSSB is affordability, stemming from the continued 20% year-on-year reduction of the historic commitments lump sum and reducing pupil numbers.
• High Needs Block: The DfE's High Needs Block operational guidance has not yet been published, so the extent of directed technical changes to high needs formula funding mechanisms in 2026/27 is unknown. The Authority has four main models in place: the EHCP Banded Model, the AP Day Rate Model, the special schools funding model, and the resourced provisions funding model.

The Schools Forum was asked to note the information presented and to begin considering the implications for the 2026/27 DSG budget planning round and formula funding arrangements. Members were also invited to attend a 'Formula Funding Working Group' session.

2025/26 Quarter 1 DSG Forecast

The Schools Forum was reminded of the quarter 1 DSG account forecast that was presented at the last meeting in July, as detailed in Document TA, '2025/26 Quarter 1 DSG Forecast.' The report restated the 2025/26 quarter 1 monitoring position, focusing on the High Needs Block, and included additional information regarding non-High Needs Block factors that may affect the DSG account forecast in 2025/26.

The highlights of the Quarter 1 forecast for 2025/26 were:

• The Central Schools Services Block (CSSB) will neither over nor under spend.
• The Schools Block may overspend by £0.935m, due to spending the balance of the schools in financial difficulty / exceptional financial circumstances de-delegated fund.
• The Early Years Block (EYB) may overspend by £2.0m, due to the repayment of DSG funding relating to the 2024/25 financial year.
• The High Needs Block may overspend by £27.5m.
• The forecast does not yet include additional grant that may be allocated by the DfE to offset the increase in employer's contribution to National Insurance and the new Schools Budget Support Grant related to centrally employed staff.
• Overall, the DSG account may cumulatively be in deficit by £5.8m at the close of 2025/26, with a deficit of £17.6m held within the High Needs Block being partially offset by surpluses in the other three blocks.

The report also provided an update on national SEND and High Needs Block reform, key SEND statistics updated at January 2025, areas of High Needs Block spending pressure and strategic focus, 2026/27 High Needs Formula Funding & Financial Support from the Other DSG Blocks, the SEND Funding Floor (Mainstream Targeted SEND Funding), and non-High Needs Block factors that may affect the overall 2025/26 DSG account forecast.

The Schools Forum was asked to note the information presented.

Work Programme and Schedule of Meetings 2025/26 Academic Year

The Schools Forum was presented with Document TC, 'Schools Forum Meetings Schedule & Work Programme for the 2025/26 Academic Year,' which outlined the proposed work programme for the 2025/26 academic year.

Key dates and announcements for the autumn term 2025 include:

• September to December – expected announcements on the 2026/27 DSG settlement and formula funding arrangements.
• October to December – expected announcements on the 2026/27 Early Years Block settlement and formula funding arrangements.
• October to December – expected announcements on national SEND / AP reform and the DfE's approach to DSG account deficits.
• October to December – expected announcements covering post 16 funding for 2026/27, as well as wider recurrent grants e.g. Pupil Premium Grant.
• Autumn – possible further announcements and consultations on the development of the Schools Block (and Central Schools Services Block) 'hard' National Funding Formula.
• 2 October 2025 – Schools' October Census.
• Mid-November – academies and FE specialist places return for 2026/27 AY to DfE.
• Mid-November – deadline for submissions of 'disapplication' requests to the DfE.
• Mid-December – DfE publication of the dataset from the October 2025 Census.
• Mid-December – DfE to confirm our 2026/27 DSG allocation.

Key planned business for the autumn term 2025 includes:

• Review of Bradford's DSG Management Plan, with focus on the High Needs Block and deficit projection.
• Response to DfE's major SEND / AP national reform announcements.
• Consideration of the annual specialist places sufficiency statement (December).
• Consideration of the Schools Block, Early Years Block, High Needs Block and Central Schools Services Block settlements for 2026/27 and operational guidance for formula funding.
• Consideration of the implications of the 'hard' National Funding Formula reforms.
• Early Years Single Funding Formula review for 2026/27, and other early years funding matters.
• Bradford's Primary, Secondary, Early Years and High Needs 2026/27 formula funding consultations & consideration of responses.
• The review of items to be de-delegated / held centrally within the DSG for 2026/27.

The Schools Forum was asked to note the proposed programme and to consider whether any additional items should be added.