The Schools' Forum meeting on 16 March 2026 addressed the financial health of the borough's schools, including the Dedicated Schools Grant (DSG) budget monitoring and forecast school balances. The forum also discussed school place planning and received recommendations from the High Needs Block Reference Group regarding SEND reforms.

Dedicated Schools Grant Budget Monitoring and Forecast School Balances

The Schools' Forum reviewed the Dedicated Schools Grant (DSG) allocation for 2025/26, which stood at £87.379 million. A projected overspend of £299,000 was noted, which would increase the cumulative DSG deficit from £3.287 million at the end of 2024/25 to £3.586 million by the end of 2025/26. The report highlighted that three schools and one nursery school were forecasting deficits by the end of 2025/26, and the council pledged to provide support and advice to these institutions and those at risk of financial difficulty. The forum also noted that the previously agreed process of clawbacks, which involves the recovery and redistribution of excessive school balances, would be active from April 2026, based on the 2025/26 year-end balances.

The detailed forecast of school balances revealed that the total reserves held by schools at the end of March 2026 were estimated to be £4.368 million, a reduction of £0.493 million from the previous year. However, concerns were raised about the number of schools with excessive balances – those exceeding Department for Education (DfE) guidance of 5% for secondary schools and 8% for nursery, primary, and special schools. Six schools were predicted to have excessive balances by the end of 2025/26, with an average primary school balance forecast at £127,114. A balance control mechanism (BCM) is set to be introduced from the 2026/27 financial year, with locally agreed thresholds for excessive balances at 20% for nursery, primary, and special schools, and 12.5% for secondary schools, with a £15,000 minimum threshold for recovery and redistribution.

School Place Planning

The forum received an update on school place planning, noting that despite efforts to reduce surplus capacity, a modest pupil yield from new housing developments is expected to continue presenting challenges over the next five years. This situation carries the risk of some schools becoming financially unviable. The report indicated that RBKC continues to experience significant surplus capacity in the primary sector, with forecasts suggesting this will persist for at least the next five years. While actions have been taken to reduce or cap forms of entry, persistently low school rolls are impacting staffing, curriculum, and financial resilience. In contrast, secondary schools remain well-subscribed.

To address these challenges, schools have requested that the Schools' Forum consider commissioning an independent analysis to help them understand the risks associated with surplus capacity. This analysis would update a previous review undertaken by the ISOS Partnership. The financial implications of this independent analysis are estimated to be up to £15,000. The forum was asked to agree to the de-delegation of up to £15,000 in 2027/28 to cover the cost of this updated analysis, which would inform future school organisation and sufficiency planning in 2026/27.

Recommendations from the High Needs Block Reference Group

The Schools' Forum was updated on government policy proposals for Special Educational Needs and Disabilities (SEND) reform and feedback from the High Needs Block Reference Group (HNBRG). The HNBRG highlighted that the SEND system nationally is facing significant financial pressure due to increasing numbers of Education, Health and Care Plans (EHCPs), rising complexity of need, and the high cost of independent provision. Locally, RBKC's High Needs Block is experiencing in-year pressure, contributing to a cumulative deficit.

The report detailed government proposals from the Schools White Paper, Every Child Achieving and Thriving, which aims for a funded mainstream system transformation and includes proposals for SEND reform. Key proposals include a three-tier support system for pupils with SEN, with a new legal requirement for schools to create Individual Support Plans (ISPs) for all children with SEND. Nationally defined Specialist Provision Packages are proposed for the most complex needs, and EHCPs will be rebuilt around these packages. The government has announced £4 billion in funding from early 2027 for earlier intervention and mainstream inclusion, including Inclusive Mainstream funding and Experts at Hand funding for local specialists. Reforms also propose national price bands for independent schools to cap funding to the independent sector. A consultation on these reforms is open until 24 May, and it was suggested that an additional HNBRG meeting be held to formulate RBKC's response. The DfE has also announced capital funding for a 10-year estates strategy to improve suitability for pupils with SEND.

The HNBRG also discussed RBKC's local SEND Strategy 2025–2030, which aims to create capacity in the system and drive earlier support and inclusion. Heads acknowledged recent investments in provision, such as SEMH provision at Freston Junction and Ormiston Kensington Queensmill satellites at Avondale. The forum noted that while budgets for 2026/27 are expected to be tight, there is investment in targeted support and early identification.

The forum was asked to note the national policy developments, the high needs block forecast, the DSG cumulative deficit position, and the new High Needs Stability Grant. They were also asked to note the allocations for mainstream schools with Special Resource Provision (SRP) for the National Insurance Contributions (NICs) grant and School Budget Support Grant (SBSG).