The Schools Forum met on Wednesday 14 January 2026 to discuss the Dedicated Schools Grant (DSG) for the upcoming academic year and to review the current financial position of the grant. Key decisions were made regarding the implementation of the National Funding Formula for schools and the approval of hourly rates for early years providers.

2026-27 Dedicated Schools Grant (DSG) Budget Strategy

The Schools Forum noted the latest funding arrangements for the 2026-27 Dedicated Schools Grant (DSG). A significant increase of 4.55% in the total DSG allocation was observed compared to the previous year, amounting to £459,161,773. The Schools Block saw a 2.41% increase, reaching £308,283,240, partly due to the amalgamation of the School Budget Support Grant (SBSG) and National Insurance Contributions Grant (NICs) into this block. The Central School Services Block (CSSB) experienced a minimal reduction of 0.02%, while the High Needs Block (HNB) increased by 4.39% to £80,347,526. The Early Years Block (EYB) saw the largest percentage increase of 16.15%, reaching £67,117,519.

The Forum agreed to the proposed hourly rates for early years providers for 2026-27. For 3 and 4-year-olds, the rate increased by 5.6% to £8.31 per hour. For 2-year-olds, the rate rose by 3.7% to £12.11 per hour, and for under 2s, it increased by 3.9% to £16.67 per hour. These rates ensure that 97% of the EYB funding is passed directly to providers, with 3% retained centrally.

DSG 2026-27 National Formula Funding for Schools

The Schools Forum agreed to implement Option 1 for the 2026/27 National Funding Formula (NFF) for Schools. This decision will form the basis of the Authority Proforma Tool (APT) to be submitted to the Department for Education (DfE) by 22 January 2026. The adopted approach maintains the Minimum Funding Guarantee (MFG) at 0%, a 0.5% transfer of £1.54m to the High Needs Block, and a headroom provision of £0.514m. The lump sum for each school will be a maximum of £180,565. This decision aligns with the DfE's gradual approach to implementing a direct NFF, with Royal Greenwich having adopted the NFF methodology since 2018-19.

2025-26 Dedicated Schools Grant (DSG) Update

The Schools Forum noted the current financial position of the 2025-26 Dedicated Schools Grant (DSG), which showed an overall projected deficit of £12.83 million. The primary driver of this deficit remains the High Needs Block (HNB), which has a projected overspend of £11.31 million. This is attributed to the increasing number of Education, Health and Care Plans (EHCPs) and the associated costs of independent placements. The Schools Block is projected to have a minimal overspend of £0.07 million, while the Central Block has a projected overspend of £0.54 million, partly due to the inclusion of copyright licence costs. The Early Years Block is projected to be within budget with a small overspend of £0.30 million. The Forum also noted the ongoing work to increase SEND provision within the borough and to identify efficiency savings within the HNB. A report on the review of the Trade Union facility overspend is expected at the next meeting.

2026-27 DSG - Central School Services Block Budget Update (CSSB)

The Schools Forum noted and agreed the budget for the 2026-27 DSG Central School Services Block (CSSB), which is £3.413 million. This represents a reduction of £200,000 compared to the 2025-26 baseline. The CSSB funding is comprised of ongoing responsibilities and historic commitments. The ongoing responsibilities element, calculated on a per-pupil basis, has seen a 1.26% increase. Historic commitments funding has reduced by 20% compared to the previous year, in line with DfE guidance to phase out these commitments over time. The Forum also noted the projected balance position for the 2025-26 CSSB. Efficiencies and savings are being sought in areas such as School Interventions and Targeted Support to manage the reduction in CSSB funding.

2025-26 DSG - High Needs Block Update (HNB)

The Schools Forum noted the current position of the 2025-26 DSG High Needs Block (HNB), which has a projected deficit of £11.31 million. This significant overspend is primarily driven by the rising costs of independent school placements and the substantial increase in the number of EHCPs. The Forum was informed that the number of EHCPs in Royal Greenwich has increased by 75% over the past five years, a rate higher than both London and England averages. Initiatives are underway to reduce independent placements and increase in-borough provision, including the development of Local Authority Resource Provision (LARP) places and allocating additional SEN support to schools and academies.

Attendance Record

The Schools Forum noted the attendance record for the 2025-2026 academic year.