The Cornwall Schools Forum met on Friday 27 February 2026 to discuss the Dedicated Schools Grant (DSG) funding settlement for 2026/27 and the School Balances Policy. The Forum received an update on the DSG settlement, which indicated an overall increase in funding but highlighted concerns regarding the High Needs Block. A revised School Balances Policy was presented, aiming to ensure more effective use of school reserves.

Dedicated Schools Grant (DSG) Funding Settlement 2026/27

The Cornwall Schools Forum received an update on the provisional Dedicated Schools Grant (DSG) allocations for the 2026/27 financial year. The overall DSG funding for Cornwall is set to increase by 5.3% to £624.819 million. This includes increases across most blocks: the Schools Block will rise by 3.3% to £447.074 million, the High Needs Block by 4.0% to £90.388 million, and the Early Years Block by a significant 19.6% to £83.695 million. The Central Schools Services Block will see a slight decrease of 1.7% to £3.661 million.

However, a key concern raised was the High Needs Block, which has been effectively frozen at the 2025/26 rate pending the release of government SEND reforms. This freeze, despite an anticipated uplift, is expected to put additional pressure on the authority's high needs budget. Cornwall's per-pupil funding in this block ranks it as the 142nd lowest out of 151 local authorities nationally. The report noted that the continued inclusion of historic spend in the high needs funding formula contributes to this disparity.

The report also detailed the breakdown of the Schools Block, showing a primary unit of funding at £6.026 and a secondary unit at £7.324. Cornwall's overall composite allocation of £6,679 per pupil places it as the 91st lowest-funded authority. The report indicated that schools in Cornwall are likely to see an average increase of 2% per pupil due to the inclusion of previously separate grant streams within the DSG. However, the allocation for pupil growth funding has reduced by 37% to £0.643 million.

The Central School Services Block is experiencing a year-on-year reduction to its historic funding element, which covers Premature Retirement Costs (PRC). Cornwall has requested a limited reduction to this element.

The Early Years Block has seen a significant increase due to the full rollout of new entitlements for children aged 9 months to 2 years and the extension to 30 hours for working parents. However, changes to census counts for entitlements are expected to have a negative impact, although increased local authority rates are intended to offset this. Cornwall's early years allocation per pupil also remains below the national median.

The report was presented for information, with the schools funding formula submission and confirmation of relevant DSG budget setting to be discussed at the June Schools Forum agenda.

School Balances Policy

The Cornwall Schools Forum considered a revised draft policy for the management of surplus revenue balances in local authority maintained schools. The policy aims to ensure that school reserves are used effectively to enhance educational outcomes for children and young people.

The Local Authority defines an acceptable level of reserves as up to 15% of a school's annual funding (DSG for primary, secondary, special schools, and PRUs; Nursery funding for nursery schools). Balances at or below this threshold will be accepted without further action. Schools with reserves exceeding 15% will be required to submit a plan outlining the use of these reserves, and the Local Authority will engage in a conversation with the school's leadership to understand the rationale.

The policy outlines specific circumstances under which excess revenue balances can be held, including managing financial difficulties due to budget reductions, exceptional circumstances, contributions to capital schemes, 'spend to save' initiatives, and managing expansion of pupil numbers. Schemes must be appropriately evidenced and will be subject to approval by the Local Authority, with certain complex cases referred to the Schools Forum. The default position is that spending on approved schemes must be completed by the end of the next financial year, though multi-year savings are permissible with agreement.

The policy was last discussed and principles supported in April 2022. The revised approach aims to avoid penalising schools for minor infringements and focuses on ensuring that school funding is utilised in a timely manner.

Pupil Growth Formula 2026/27 and Schools Funding Formula

The Cornwall Schools Forum endorsed Option B for the Pupil Growth Formula 2026/27. This option reduces the amount each school receives but ensures that all schools qualifying for growth funding under the usual methodology will receive some funding. This decision was made at an Extraordinary meeting on 9 January 2026, following a deferral from the December 2025 meeting to allow for the provision of additional anonymised data.

At the same Extraordinary meeting, the Forum also resolved to continue pooling funds for specific purposes for Primary Schools for 2026/27:

• A Staff Costs/Supply Cover Maternity Leave fund of £137k.
• A Trade Union Representation fund of £29k.
• A fund for Schools in Financial Difficulty of £135k.
• Free School Meals Eligibility assessments for £10k.

It was noted that Secondary Maintained School representatives were to be consulted via email on specific recommendations, and Primary Maintained School representatives supported a particular recommendation.

At the meeting on 27 February 2026, the Finance Analyst provided an update on the 2025/26 school funding formula. This included a further adjustment to basic entitlement funding rates to create a Growth Fund, which had been fully spent supporting new and expanding schools. This resulted in an average reduction of approximately £330 per primary school and £3,200 per secondary school. The Forum noted that this was a redistribution of existing resources, as the local funding formula costs more to deliver than the grant received. Issues with sparsity funding were also discussed, with increased eligibility due to DfE changes leading to insufficient funds to meet entitlement levels and contributing to the capping of some school budgets. The local authority had submitted its Local SEND Reform Plan, awaiting approval which would release the High Needs Stability Grant to fund approximately 90% of the cumulative deficit held as of March 2026.

Other Business

The Cornwall Schools Forum also received verbal updates on the Redundancy Fund, Review of the Year/Self-Evaluation, the Workplan for 2026-27, and the Music Hub.

Regarding the Music Hub, members were informed that Hall for Cornwall had been awarded the contract to operate the Hub from September 2026, following a competitive procurement process overseen by Arts Council England. Cornwall Council's role is limited to providing termly subsidy payments.

A verbal update was provided on the High Needs Block Transfer, valued at approximately £1.9 million. Initial proposals for its distribution included a place-based neighbourhood model, with schools working collaboratively in local clusters to coordinate services and ensure access to support. The funding would be devolved to these clusters, subject to agreed terms and conditions. A more detailed report on options for revising the distribution of this funding was requested.

Finally, concerning the Implications for Forum, members were informed of a continued rise in demand for assessments, leading to an increasing backlog. The transition period to reduce reliance on independent specialist placements and bespoke post-16 provision was expected to present challenges, requiring mainstream schools to support a greater number of pupils with complex needs. Funding has been secured to support the wider transformation programme, including training and development for school staff.