The Redbridge Schools Forum meeting scheduled for 20 November 2025 was set to discuss the financial health of the borough's schools, including national funding formulas, grant allocations, and budget monitoring. Key topics also included the management of deficits, high needs funding, and the implications of new financial reporting standards.

National Funding Formula 2026-2027

The report for this agenda item aimed to inform the Schools Forum about the key elements of the National Funding Formula (NFF) for the 2026-2027 academic year, as published by the Department for Education (DfE). It was noted that the NFF for 2026-2027 would use the same factors as the previous year. The report also highlighted that funding for the expansion of free school meals to all children in households receiving Universal Credit, starting in September 2026, would be provided through a separate grant rather than being incorporated into the NFF. The Schools Budget Support Grant (SBSG) and the National Insurance Contributions (NICs) grant would be rolled into the NFF. Local authorities would continue to be responsible for deciding local funding formulae for mainstream schools, with 16 mandatory funding factors remaining unchanged. The report recommended that the Schools Forum note and comment on these details.

In-Year Dedicated Schools Grant (DSG) Monitoring 2025-2026

This report provided an update on the Dedicated Schools Grant (DSG) financial position as of Quarter 2 (September 2025) for the 2025-2026 financial year. The forecast indicated an overall overspend of £8.597 million on a total budget of £330.879 million. The High Needs Block was projected to have the largest overspend, at £6.695 million, attributed to an increase in Education, Health and Care Plans (EHCPs) and rising placement costs. The Schools Block was forecasting an in-year balanced position, while the Central Schools Service Block and Early Years Block were expected to remain on budget. The report noted that the DSG reserve brought forward on 1 April 2025 was a surplus of £5.490 million, but the forecasted in-year deficit would result in a projected deficit of £3.107 million by the end of the financial year. The DSG Statutory Override had been extended to March 2028, which would potentially require any DSG overspends to be funded from the General Fund upon its cessation. The Schools Forum was asked to note the contents of the report.

Early Years Block Update

This report provided an update on the timeline for the 2026/27 Early Years Single Funding Formula (EYSFF) rates and the proposed rationale for the 2024/25 Early Years Block underspend. The Department for Education (DfE) was expected to publish Early Years National Funding Formula (EYNFF) allocations in December 2025, which would be used to review the EYSFF rates for Schools Forum in January 2026. No proposed changes to the local authority's EYSFF for 2026/27 were indicated. Regarding the 2024/25 underspend, the final position, adjusted after the DfE mid-year adjustment, showed an overall underspend of £826,543. However, due to guidance on the move to a termly Early Years census from summer term 2026, the distribution of this underspend to early years settings was to be delayed to ensure sufficient contingency funding. The Schools Forum was asked to note the report.

School Funding and Grants 2025-2026

This report provided an overview of revenue grants (non-DSG) for the financial year 2025-2026. It detailed grants such as the Pupil Premium Grant, PE and Sports Premium, Universal Infant Free School Meals, and various other grants including those for National Insurance Contributions and Teachers' Pension Scheme employer contributions. The report outlined the expected publication dates and payment schedules for these grants. For example, the Pupil Premium Grant allocation for 2025-2026 was £12.943 million, intended to raise the attainment of disadvantaged pupils. The PE and Sports Premium for primary schools was expected to continue, with allocations yet to be published by the Education and Skills Funding Agency (ESFA). The report recommended that the Schools Forum note its contents.

Maintained Schools Budget Monitoring

This report presented the initial findings from the Quarter 2 Budget Monitoring Returns submitted by maintained schools. As of 4 November 2025, returns had been received from 53 out of 59 maintained schools. The analysis indicated a forecast reduction in revenue reserves across maintained schools of £6.053 million, a decrease of 34%. Primary schools showed a 32% reduction, while secondary schools experienced a 49% decrease in revenue reserves. Six schools were forecasting a deficit position by 31 March 2026, totalling £1.997 million. The report highlighted a variation in the scale of reserves held by individual schools and noted that 34% of schools were forecasting to use more reserves in 2025-26 than they expected to have remaining at the end of the financial year. The Schools Forum was asked to note and comment on the report.

Schools in Financial Difficulty

This report outlined the support the council intended to offer to schools experiencing deficits and financial difficulties. It detailed a workplan for supporting these schools, which included reviewing their financial recovery plans for suitability, feasibility, and achievability. Primary and Special Schools with surpluses at 4% or less of their total revenue for 2024-25, and Secondary Schools with surpluses at 3% or less, would be RAG rated. The council would then meet with these schools to discuss their financial problems, mitigation plans, and potential Department for Education (DfE) support. Schools in a known deficit position would be encouraged to utilise the free offer of a Schools Resource Management Advisor (SRMA), which the Local Authority could arrange. The report recommended that the Schools Forum note and comment on the suggested process.

High Needs Block Update

This report provided an update on the 2025-26 Dedicated Schools Grant (DSG) High Needs Block position, including an analysis of funding allocations, spending forecasts, and key pressures. Redbridge was projected to face increasing financial pressures within the High Needs Block, with an in-year deficit of £8.953 million anticipated for 2025/26, adding to an existing cumulative deficit of £0.747 million, resulting in a projected total cumulative deficit of £9.795 million by the end of 2025/26. The largest pressure was identified in the Mainstream Special Schools in borough category, with a projected overspend of £5.366 million. The report detailed projected spends across various service areas, including mainstream primary and secondary schools, special schools (both in and out of borough), non-maintained and independent schools, pupil referral units, and personal travel budgets. The High Needs Funding sub-group's focus would be on reviewing emerging priorities from the LA's Priority Action Plan. The Schools Forum was asked to review and note the High Needs block budget for 2025-26 and the Month 7 outturn forecast.

Update on Scheme for Financing Schools

This report detailed updates made by the Department for Education (DfE) to the Scheme for Financing Maintained Schools for the financial year 2025/26. The latest update, published in March 2025, updated the statutory guidance issue number from 'issue 15' to 'issue 16'. An additional item was added where a school's budget share may be charged: the cost of an undisputed invoice for energy where a school had entered into an agreement with the Secretary of State for energy supply and failed to pay such an invoice. The revised Redbridge Scheme for Financing Schools was scheduled to be presented to the Schools Forum in March 2026 for approval. The Schools Forum was asked to note the changes made by the DfE.

Growth and Falling Rolls Funding 2025-2026

This report provided an update on the proposed allocation of Growth and Falling Rolls Funding for the 2025-26 financial year. A budget of £0.368 million had been set aside from the 2025-26 DSG allocation. The report noted significant challenges across London due to falling birth rates and family migration, leading to a decrease in demand for school places, a trend predicted to worsen over the next ten years. This decline was putting considerable financial pressure on many schools, particularly in the primary sector, with secondary schools also expected to be increasingly affected. The report indicated that based on the agreed criteria, no schools were eligible for additional funding. However, ten schools met some criteria in part, and a revised methodology was proposed for this financial year only to distribute the remaining budget of £265,615 proportionately across 234 'empty pupil places' in these schools, at a rate of £1,135 per place. The Schools Forum was asked to note the content of the report and agree the revised methodology.

Cash Advancements and Deficit Management for Maintained Schools

This report provided information on the Council's provision of cash advancements to schools and expectations regarding deficit management in maintained schools. Historically, the Council provided short-term repayable cash advances to schools with temporary cashflow issues, with repayment expected before the financial year-end. However, since the 2024-2025 financial year, instances had occurred where advances were not repaid, suggesting structural deficits. Going forward, the Council would only provide cash advances if repayment could be assured within a short timeframe; otherwise, the school would be identified as needing financial support and a financial recovery plan. The report also outlined that if deficits were incurred, the full amount would be carried forward to the next financial year, and schools would be required to submit a recovery plan to the Local Authority. Deficit arrangements could only be agreed under specific circumstances, such as when budget reductions made corresponding expenditure reductions unachievable within the same financial year, or for unavoidable expenditure that could not be reasonably met from school resources. The Schools Forum was asked to note the contents of the report.

Schools Internal Audit Plan

This report provided further information on Internal Audit coverage of Redbridge schools, following questions and concerns raised at a previous Schools Forum meeting. The Internal Audit team had reviewed previous coverage over the last five financial years and presented this information, along with a general briefing. The team confirmed its ability to provide ad hoc advice and guidance to schools and stated that schools could contact them for support. The report addressed questions regarding the funding of Internal Audit, stating it was funded from the LBR budget. The current staffing level allowed for up to five school audits per year. Schools were selected for audit based on a structured process considering financial management, governance, previous audit outcomes, Ofsted reports, and feedback from other Council services. The frequency of audits was not fixed but determined by these factors. The report clarified that Internal Audit's remit extended beyond financial matters to include governance, risk management, and internal control arrangements, but did not assess the quality of teaching. Individual school audit reports were not published publicly, but assurance opinions were shared with the Governance Assurance Committee. The report also addressed a specific query about Oaks Park High School's audit history. The Schools Forum was asked to note the report.

School Leases Update

This report provided background on the changes in the process for lease arrangements and reporting within schools, particularly following the implementation of International Financial Reporting Standard 16 (IFRS16) on 1 April 2024. Under IFRS16, most leases are now treated as borrowing for accounting purposes, requiring schools to recognise leases on their balance sheets. This change aims to improve transparency and consistency in financial reporting, necessitating more rigorous lease tracking and planning for school finance officers. Maintained schools are expected to provide the Local Authority with records of all existing and new leases to ensure compliance and inclusion on the Local Authority's balance sheet. The report noted that all 59 maintained schools had been contacted, with 46 responding and 14 still outstanding. A further update would be provided at the next meeting. The Schools Forum was asked to note the contents of the report.