The Schools Forum of North Northamptonshire Council met on Thursday 12 March 2026 to discuss significant financial updates regarding the Dedicated Schools Grant (DSG), including substantial overspends in the High Needs Block, and to review school monitoring reports. Key decisions included noting the High Needs Block update, approving the 2026/27 Pupil Growth Fund policy and budget, and approving the 2026/27 Early Years Block budgets.

High Needs Block Update

A significant portion of the meeting was dedicated to the High Needs Block, with Anita Gray providing an update on the financial situation and government reforms. The Department for Education (DfE) has announced a High Needs Stability Grant, covering 90% of the high needs-related DSG deficit accrued by the end of the financial year 2025-26. This grant is contingent on the submission and approval of a local SEND reform plan by 19 June 2026. North Northamptonshire Council is working on developing this plan, which includes a self-assessment using a local partnership maturity tool and a desktop review of forecasting, monitoring, and financial controls, due by the end of March.

Concerns were raised by members about meeting these tight deadlines, particularly given recent personnel changes, including the Head of SEND not starting until May. However, officers assured the forum that the deadlines would be met, supported by a robust transformation project team. The financial report due at the end of March is primarily based on the council's own data and governance, with less direct input required from schools and Multi-Academy Trusts (MATs) at this stage. The broader SEND reform plan, however, will require significant collaboration.

The discussion also touched upon the DfE's announcement on 9 February regarding the High Needs Stability Grant, which covers 90% of deficits accrued up to the end of the current financial year. This grant is intended to reduce the deficit recorded in council accounts by 31 March 2026. The payment of this grant is conditional on the submission and approval of a local SEND reform plan.

Members also discussed the potential for an expanded role for Schools Forums in the new landscape of SEND reforms. A specific point of concern was raised regarding the 0.5% transfer to the High Needs Block that Schools Forums were asked to approve in the autumn, prior to the February announcement of the stability grant. Advice from the DfE on how this impacts previous decisions was sought.

Dedicated Schools Grant (DSG) Update

Yoke O'Brien presented an update on the Dedicated Schools Grant (DSG) for the 2025-26 financial year, reporting a forecast overspend of £4.36 million at Quarter 3. This is in addition to a built-in deficit budget of £19.41 million, bringing the total forecast DSG deficit to £23.77 million for the current year. Cumulatively, the overall deficit is projected to exceed £45 million by 31 March 2026.

The primary driver of this overspend is the High Needs Block, which is forecasting an additional £6.293 million over its agreed deficit budget. The report detailed the breakdown of spending within the High Needs Block, highlighting significant pressures in Alternative Provision (£2.6m overspend), Special Schools (£2.1m overspend), and Independent Provision (£105k overspend, with a risk of increase due to sufficiency issues). The Schools Block, conversely, is forecasting an underspend of £1.933 million, largely due to reduced spending on planned growth.

Members expressed concern about the significant increase in the forecast net spend between periods six and nine, particularly within alternative provision. Anita Gray explained that this was partly due to an increase in pupil numbers requiring personalised packages, often while awaiting school places. The council is undertaking analysis to understand the drivers of this increase.

The discussion also covered the DfE's proposed move towards funding based on termly censuses for all age groups, rather than the current mixed approach.

Schools Monitoring Update

Cathryn Walker provided an update on the schools monitoring position as at the end of January 2026 (Period 10). The report indicated that nine schools were identified as operating in deficit. The presentation of this data was discussed, with members agreeing to focus on the year-end forecast column and remove historical data to improve clarity. There was a significant swing between the forecast year-end reserves and the actual projected outturn, prompting questions about the accuracy of forecasting and the need for more consistent monitoring. The trend of declining reserves across most schools was also highlighted as a concern.

The council's approach to supporting schools in deficit was discussed, with reference to a targeted rapid improvement program. However, the long-term pathway for this support remained unclear due to structural changes and recruitment challenges.

Pupil Growth Fund Update

Anita Gray provided an update on the Pupil Growth Fund, detailing the allocation of £1,514,254 for the 2025/26 financial year across primary and secondary schools in Corby, Kettering, Wellingborough, and East Northants. Schools expressed a desire to be more involved in the place planning process and to receive information regarding planned growth and new school developments. A discussion ensued regarding an underspend in the school block's growth funding, which was being offset against the High Needs Block deficit. Questions were raised about whether this underspend could be utilised for growth funding if schools had incurred costs but were awaiting payment.

2026/27 Budget Update

Yoke O'Brien provided a verbal update on the 2026/27 budget. This included the inclusion of the Schools and NDR (Non-Domestic Rates) estimate, which increased the post-MFG budget. A minor change to the calculation for new and growing schools affected Glenville School, resulting in a reduction of £45,000 from its budget share and a subsequent decrease in the overall capping for North Northamptonshire schools. The DfE has also rolled the Core Schools Project Grant into special school and SEND unit budgets for 2026/27, and the National Insurance Contribution Grant and Schools Budget Support Grant have been incorporated into SEND unit and resource provision budgets.

Early Years Block Update

Kelly Gasson provided a verbal update on the Early Years Block, confirming that North Northamptonshire already had in place the four key points from the updated early years statutory duty, which came into effect on 9 February. These include an increased minimum pass-through rate of 97%, a reduced centrally retained budget of 3%, and the statutory requirement to share base rates with the sector by the end of February. The council has been operating with monthly payments and data collection since 2017, aligning with DfE requirements. A new computer system, Synergy, is due to go live for the sector on 23 March.

Other Discussions

The meeting also included a discussion on the potential for a SEND provision or alternative provision school at Hanwood Park, with officers to follow up with the Department for Education. Members also requested statistical neighbour data for benchmarking purposes, particularly concerning High Needs deficits and alternative provision spending. The potential for developing a reserves policy for maintained schools to act as an early warning system was also raised.