The Schools Forum met on Monday 19 January 2026 to discuss the 2026/27 school budgets, including the Dedicated Schools Grant (DSG) allocations for the Schools Block, Central Schools Services Block, and Early Years Block. Key decisions included the approval of revised hourly rates for early years providers and the budget for centrally provided services, as well as noting the provisional 2026/27 High Needs budget.

Finance Update

Abdirizak Hussein, Strategic Finance Manager, presented an update on the council's finances. He reviewed the Q3 summary position of General Funds, highlighting areas of significant overspend. The Dedicated Schools Grant (DSG) for 2025/26 was also reviewed by block, with projections for the year-end. Mr. Hussein noted the publication of the Fair Funding Settlement on 7 December 2025, which included a new multi-year settlement, but stressed that the 2026/27 budget would still rely heavily on savings. He confirmed that the APT had been verified and signed off, and school certificates had been issued. A change in falling rolls funding was also noted: following reassessment, one school no longer met the criteria, reducing the total budget to £247,000, with the excess transferred to the High Needs Budget.

2026/27 DSG Schools Block Budget

The Schools Forum discussed the proposed 2026/27 Schools Block budget, which is funded from the Dedicated Schools Grant (DSG). The provisional allocation for 2026/27 is £269,059,253, a 3.08% increase from the previous year. This increase incorporates funding previously distributed via the Schools Budget Support Grant and National Insurance Contributions grant. The report detailed proposed changes to the Scheme for Financing Schools and Financial Regulations, including a move to a 1 May deadline for 3-year budget forecasts with an Integrated Curriculum and Financial Planning (ICFP) workbook requirement. The excess surplus balance threshold was proposed to increase from 8.3% to 10%, with clawback after three years to a contingency fund. A loan scheme for schools was also proposed, to be approved on a case-by-case basis by the Executive Director of Finance & Resources.

During the consultation on these proposals, schools expressed strong opposition to the 1 May deadline due to timing and data concerns, while broadly supporting the surplus balance changes and the loan scheme. In response, the council committed to providing training for school leaders, allowing provisional budgets, and maintaining flexibility on deadlines.

The Schools Forum voted on the proposed changes:

• Submission of Financial Forecasts (1 May deadline and ICFP submission): 5 maintained school representatives abstained, with 0 voting for or against.
• Use and control of surplus balances (Excess balance % change to 10% and funding clawback transfer): 2 maintained school representatives voted for the proposal, 2 voted against, and 0 abstained.
• Introduction of a Loan Scheme: 5 maintained school representatives abstained, with 0 voting for or against.

Representatives raised concerns that the consultation period was too short and that more information was needed on the loan scheme. Further consultation was requested on the revised 1 May deadline.

The forum also agreed to de-delegate budgets for specific services for maintained schools:

• Administration of free school meals: 5 representatives voted for, 0 against, and 0 abstained.
• Trade Union facility time: 4 representatives voted for, 0 against, and 1 abstained.
• Schools Improvement Services: 3 representatives voted for, 0 against, and 0 abstained.
• Schools Support Services (Education Function): 4 representatives voted for, 0 against, and 0 abstained.
• Introduction of a new contingency fund to support maintained schools facing significant financial difficulties: 0 representatives voted for, 4 against, and 1 abstained.

2026/27 Central Schools Services Budget

The Schools Forum was asked to approve the council's proposals for allocations from the 2026/27 Central School Services Block (CSSB) to fund statutory duties. The provisional CSSB allocation for 2026/27 is £1,982,969. The report detailed the functions to be funded, including copyright licenses, strategic management for finance and children's services, school admissions and place planning, education welfare, SACRE, and Schools Forum servicing. The proposed budget includes a significant increase in school admissions and place planning costs (29.5%) and a decrease in education welfare costs (-30.3%). The council proposed to fully utilise the CSSB allocation to cover the costs of these statutory duties.

2026/27 Early Years Budget and Hourly Rates

Anna Hesed, Head of Finance – Business Relationships, presented the proposed 2026/27 Early Years budget and hourly rates. The report detailed the feedback from a consultation with early years providers, revised hourly rates, and a revised central budget. The proposed 2026/27 Early Years Budget is £41,026,961, representing a year-on-year growth of approximately £4.95m. This growth reflects the full maturity of the 30-hour entitlement for working parents, hourly rate uplifts, and demographic shifts.

The council proposed to retain 3% centrally (£1,218,837) to manage the statutory administration of the grant. The proposed hourly rates for 2026/27 were:

• Under 2-year-olds: £13.51 (Option 1) / £13.47 (Option 2)
• 2-year-olds: £9.79 (Option 1) / £9.76 (Option 2)
• 3- & 4-year-olds: £6.67 (Option 1) / £6.66 (Option 2)
• Deprivation supplement: £0.01 (Option 1) / £0.01 (Option 2)

Schools Forum members voted by 9 votes to 4 in favour of Option 1 hourly rates. They also approved by 13 votes the budget to be allocated to fund centrally provided services.

High Needs Budget 2026/27

Abdirizak Hussein presented a summary of the proposed 2026/27 High Needs budget, which totals £83.37 million. He reviewed the DSG reserve position, projecting a deficit of £15.29 million by March 2027. Ruth Woods raised a question about SEN Centre funding and potential clawback of unused funds, to which Phillip Walker confirmed that top-ups or clawbacks would depend on the needs funded. Louise Grimley noted a reduction in funding for Alternative Provision/Pupil Referral Units/Exclusion of Alternative Provision and School (AP/PRU/EOTAS) and questioned the fairness of this cut, particularly in light of increased pre-school and out-of-school provision. Phillip Walker explained that this reduction was part of a strategy to integrate permanently excluded young people back into mainstream education, a point that Ms. Grimley contested, stating that integration efforts had not reduced student numbers at Woodbridge Park.

The Schools Forum noted the provisional 2026/27 High Needs budget requirement and the projected deficit against the DSG reserve.

SEND & Alternative Provision Improvement Programme Update

Phillip Walker provided an update, stating that the programme would conclude on 31 March 2026 and no further updates would be required. He mentioned that details of new High Needs funding grants were awaited and that the government had assured councils participating in the Safety Valve Programme that they would not be disadvantaged. Mr. Walker also outlined government proposals for High Needs funding and responded to questions regarding the White Paper and the future of High Needs funding.

Forward Plan

The Chair reviewed the forward plan, and it was proposed to change the format of future meetings to two-hour sessions, reducing the total number of meetings to four per year. These meetings would be held from 5:00 pm to 7:00 pm and would include Head Teachers' briefings to discuss Department for Education (DfE) changes to school finances and DSG approval. Schools Forum members agreed to this change in format.

Reconsideration of Falling Rolls Funding Criteria for 2027-28

Anna Hesed proposed an amendment to the falling rolls funding criteria, suggesting that schools with excess balances of 10% of their allocated budget should not be eligible for this funding. Schools Forum agreed by 13 votes to add this criterion.