The North Northamptonshire Schools Forum met on 15 January 2026 to discuss the Dedicated Schools Grant (DSG) settlement for 2026-27, including proposed budgets for the Schools Block, Central School Services Block, Early Years Block, and High Needs Block. Key decisions included agreeing to consult on a 0.5% transfer from the Schools Block to the High Needs Block, approving the Pupil Growth Fund budget, and deciding on the preferred option for the Mainstream Schools Funding Formula.

2026-27 Dedicated Schools Grant Settlement

The Forum received an update on the 2026-27 Dedicated Schools Grant (DSG) settlement for North Northamptonshire Council, announced by the Department for Education (DfE) on 17 December 2025. The total DSG allocation for 2026-27 is £458,845,149, an increase of £24,229,943 from the adjusted 2025-26 allocation. The Schools Block has seen an increase of £6,668,204, while the High Needs Block has increased by £4,827,643, and the Early Years Block has increased by £12,883,160. The Central School Services Block has seen a reduction of £149,064. The National Insurance Contribution Grant (NICG) and Schools Budget Support Grant (SBSG) have been integrated into the Schools Block and Central School Services Block for 2026-27.

2026-27 Schools Block Budgets and Mainstream Schools Funding Formula

The Forum considered the proposed 2026-27 Schools Block budgets, including the Mainstream Schools Funding Formula. The total Schools Block DSG allocation for 2026-27 is £323,494,371.97, an increase of £6,668,203.17 compared to the 2025-26 allocation. This increase is largely due to the incorporation of the NICG and SBSG into the Schools Block. Pupil numbers have decreased by 283 in primary schools and 2.5 in secondary schools.

The Forum was asked to make several decisions regarding the 2026-27 Mainstream Schools Funding Formula:

• Transfer of 0.5% from Schools Block to High Needs Block: This transfer amounts to £1,617,472. The Forum resolved to approve this transfer.
• Pupil Growth Fund Budget: The Forum was asked to approve a Pupil Growth Fund budget of £1,248,375. The Forum resolved to approve this budget.
• Mainstream Schools Funding Formula Option: Two options were presented, differing in the Minimum Funding Guarantee (MFG) level:
  • Option 1: MFG set at 0%, Cap at 0%, Scale at 22.96%.
  • Option 2: MFG set at -0.5%, Cap at 0%, Scale at 22.85%. The Forum was asked to decide which option to adopt.
• De-delegation for Trade Union Facilities Time: A de-delegation of £4.16 per pupil for Trade Union Facilities Time was proposed. Maintained primary school representatives voted in favour, while maintained secondary school representatives abstained.
• De-delegation for School Effectiveness Service: A de-delegation of £13.48 per pupil for the School Effectiveness Service was proposed. Maintained primary and secondary schools voted in favour.

The Forum resolved to approve the transfer of 0.5% to the High Needs Block and the Pupil Growth Fund budget. The decision on the preferred Mainstream Schools Funding Formula option (Option 1 or Option 2) was to be made by the Forum. The de-delegation for Trade Union Facilities Time was supported by primary representatives, and the de-delegation for the School Effectiveness Service was supported by both primary and secondary schools.

2026-27 Central School Services Block Budgets

The Forum received an update on the proposed budgets for the Central School Services Block (CSSB) for 2026-27. The total CSSB allocation is £3,055,631.36, a reduction of £149,064.01 from the revised 2025-26 allocation. This reduction is primarily due to a 20% decrease in the historical commitments element of the CSSB. The CSSB unit of funding per pupil has increased by 2.12% to £46.33. The report detailed the proposed expenditure for ongoing responsibilities and historical commitments, noting a funding gap for pre-2013 premature retirement and redundancy costs.

2026-27 Early Years Block Budgets

The Forum was presented with the proposed 2026-27 Early Years Block budgets, based on DfE allocations and consultation with the Early Years Sector. The indicative Early Years Block allocation for 2026-27 is £61,940,846, an increase of £12,883,160 from the 2025-26 allocation. Hourly rates for various funding streams have increased, including a rise from £5.71 to £6.20 for the 3 and 4-year-old universal entitlement base rate. The report outlined the proposed rates for different funding streams, including entitlements for 2-year-olds and under 2s, Early Years Pupil Premium, Disability Access Fund, and Maintained Nursery School Supplementary Funding. The Forum was asked to approve the budgets, funding methodology, hourly rates, the council's retention of 3% for statutory duties, and the SEN Inclusion Fund budget of £616,797.

2026-27 High Needs Block Budgets

An update was provided on the proposed budget for the High Needs Block (HNB) for 2026-27. The total high needs elements allocation is £67,842,655, an increase of £4,827,643 from the 2025-26 allocation. However, the HNB budget remains under strain, projecting an in-year deficit of £24,721,000 for 2026-27. This is attributed to a continued growth in Education, Health and Care Plans (EHCPs), an increase in complex needs, and rising costs of specialist placements. The report detailed the composition of the HNB funding, including allocations for special schools, SEN units, independent placements, and mainstream school top-ups. Mitigation actions, including a sufficiency strategy to create additional specialist provision places and discussions with special schools to explore further expansion, were outlined. The Forum resolved to note the HNB budget for 2026/27.

2026-27 Pupil Growth Fund Policy and Budget

The Forum received an update on the North Northamptonshire Pupil Growth Fund (NNC PGF) policy and budget for 2026-27. The PGF is funded from the Schools Block and is used to provide revenue funding for new school places to meet basic need and support additional classes for infant class size regulations. The report outlined the qualifying criteria and allocation methods for the PGF, with per-pupil rates for primary and secondary growth factors. The projected expenditure for 2025-26 and the forecasted requirement for 2026-27 were presented, highlighting the need for additional primary capacity linked to housing development and secondary bulge capacity to meet statutory duties. The Forum was recommended to note and approve the growth fund forecast budget plans.

2026-27 De-delegation: Schools Insurance Service

An update was provided on the de-delegation of the Schools Insurance Service for 2026-27. The Risk Protection Arrangement (RPA) per-pupil rate will increase to £29 for 2026-27, a 7.4% rise from the 2025-26 rate of £27. Details of the Schools and Academies Insurance Framework (SAIF) scheme offered by the Local Authority, provided by Zurich, were still awaited. The Forum was informed that if Zurich's terms were not provided by 20 January 2026, the service would revert to being fully traded for primary and secondary schools. The Forum was asked to note that the LA's cover is comparable to the RPA and likely to be offered at a lower price per pupil.

2025-26 School Budgets Monitoring at Period 8

The Forum received a report on the 2025-26 school budget monitoring position as at Period 8 (April to November 2025). The report indicated that one budget submission was still outstanding. Table 1 outlined the income and expenditure up to Period 8, with a note that forecasts had limitations due to the pay award for support staff and teachers and subsequent back pay not yet being actioned for all schools. Eight schools were identified as operating in deficit, and the report detailed the support mechanisms in place for these schools, including tailored financial oversight and the Targeted Rapid Improvement Programme (TRIP) meetings. The Forum was asked to note the current year's budget position.

2026-27 Policy for Readjustment or Deduction of Funding following a Permanent Exclusion

The Forum was presented with the proposed 2026-27 policy for the readjustment or deduction of funding following a permanent exclusion of a pupil. The policy ensures that funding follows the pupil from the excluding school to the receiving provision, in accordance with statutory guidance. The readjustment of funding will be based on the North Northamptonshire per-pupil funding formula, calculated daily and multiplied by the remaining school days in the financial year. The policy also outlines the process for dispute resolution and states that the policy will be updated annually. An appendix provided a breakdown of the demographic and funding factors used in the calculation.

Urgent Business

There was no urgent business to discuss.