The Schools Funding Forum of Havering Council met on Thursday 12 February 2026 to discuss proposed funding allocations for the upcoming academic year. Key agenda items included the Early Years Funding for 2026-27 and High Needs Funding for 2026-27.

Early Years Funding 2026-27

The meeting was scheduled to discuss the proposed funding rates for early years providers for the financial year 2026-27. This included a consultation with early years providers regarding these proposals. The report outlined recommended base hourly rates for different age groups: £11.85 for children aged 9 months to two years old (under twos), £8.64 for two-year-olds of working parents, £9.20 for two-year-olds from disadvantaged families, and £6.02 for three and four-year-olds.

Further discussions were scheduled regarding supplementary funding factors, with a proposal to continue using deprivation and quality supplements. The deprivation supplement would remain aligned with the rates used for schools in the National Funding Formula, based on the Income Deprivation Affecting Children Index (IDACI) bands. The quality supplement is intended to allocate funds to schools, replacing the Teachers' Pay and Pension Grants (TPPG).

A significant increase to the Special Educational Needs Inclusion Fund (SENIF) was proposed, rising to a total budget of £2.313m to address growing demand for SEND support. The report indicated that the demand for SENIF had risen significantly, with an increase in children under five with Education, Health and Care Plans (EHCPs).

Finally, the forum was to consider the centrally retained budget for Local Authority support and commissioning, with a proposed budget of £1.797m, representing 3% of the Early Years Block. This funding is intended to support various statutory duties and sector-wide services. The consultation outcomes, detailed in Appendix 4C of the public reports pack, showed strong support from providers for the proposed funding rates and budget allocations.

High Needs Funding 2026-27

The meeting was also scheduled to address proposals for High Needs Funding for 2026-27. This included an increase to unit placement funding rates and updated top-up funding levels for pupils in mainstream schools, based on agreed needs bandings. The report highlighted the financial context of these proposals, noting current expenditure pressures within the High Needs Block (HNB).

The High Needs Block supports children and young people with Special Educational Needs and Disabilities (SEND) across various settings, including special schools, special units within mainstream schools, and top-up funding for pupils with EHCPs in mainstream settings. Havering Council operates an inclusive system, with most pupils with EHCPs educated within the borough. However, the report indicated that the demand for High Needs provision continues to significantly exceed available funding, contributing to a substantial cumulative deficit.

For 2026-27, the Department for Education (DfE) had rolled forward funding broadly in line with 2025-26 allocations, which represented no real-terms increase and did not account for rising demand or cost pressures. The report detailed proposed increases to specialist unit funding, from £30,000 to £30,800 per place, to ensure financial viability and support inclusive local provision.

Additionally, the band values for mainstream top-up funding were proposed to be uplifted by 3% to reflect pay pressures, with the total cost of this uplift to be funded through a transfer from the Schools Block. The report noted that these proposed increases, while necessary to maintain current provision, do not address the underlying demand pressures within the High Needs Block and do not reduce the overall Dedicated Schools Grant (DSG) deficit.