The Leicestershire Schools' Forum met on Wednesday 24 June 2026 to discuss the financial health of the county's schools, the Dedicated Schools Grant (DSG) outturn, and reforms to Special Educational Needs and Disabilities (SEND) provision. The meeting also covered the early years budget for the upcoming academic year.

School Budgets and Sustainability

A significant portion of the meeting was dedicated to the financial sustainability of Leicestershire's maintained schools. A report indicated that as of 31 March 2026, these schools had an overall net deficit of £3.6 million, with a projected net deficit of £9.83 million for the 2026/27 financial year, potentially rising to £28.05 million by 2029/30. This deterioration is attributed to structural factors such as pay awards outpacing funding growth, rising energy and premises costs, and demographic decline. The Local Authority has implemented an intervention programme, including a new Deficit Budget Policy for Maintained Schools and a formal monitoring framework. The School Places Strategy 2026-2031 was also highlighted as relevant, addressing falling pupil rolls and surplus places, which impact the financial viability of schools. The report noted a risk to the Local Authority from accumulated school deficits, with potential liabilities transferring to the council if schools close or convert to academies.

DSG Outturn

The meeting reviewed the 2025/26 Schools Budget outturn, revealing an overall overspend of £30.9 million across the Dedicated Schools Grant (DSG) funding blocks. The High Needs Block (HNB) accounted for the majority of this overspend, with £34.7 million attributed to increased demand for Education, Health and Care Plans (EHCPs). The cumulative DSG deficit stood at £79.2 million at the end of March 2026. Government support is expected to cover up to 90% of this deficit, subject to the submission and approval of a local SEND reform plan. The report also noted an underspend of £2.9 million on the Early Years Block and £0.9 million on the Schools Block.

SEND Reform Approach and Experts at Hand Model

An update was provided on the national SEND Reform Programme and Leicestershire's Local SEND Reform Plan. The reforms aim to address rising demand, increasing costs, and variable inclusion in mainstream provision. The plan includes a focus on early intervention and mainstream inclusion, with the Experts at Hand model designed to embed multi-disciplinary teams into mainstream settings to provide early support. The High Needs Block expenditure is forecast to rise significantly, with independent and non-maintained special school placements and alternative provision being the fastest-growing areas of spend. The report emphasised that schools are central to the success of these reforms and that the changes are intended to support schools rather than transfer unfunded responsibility.

Early Years Budget 2026/27

The meeting reviewed the Early Years Block budget for 2026-27. Leicestershire County Council confirmed its compliance with the statutory requirement to pass through a minimum of 97% of its Early Years National Funding Formula (EYNFF) allocation to early years providers. The achieved pass-through rates for the four funded entitlement streams all met or exceeded this requirement, with the highest rate of 97.2% for 3 and 4 year olds, and 9 month to 2 year olds of working parents. The report detailed the budget for each entitlement stream, including base rates, deprivation supplements, and SEN Inclusion Fund payments. Centrally retained expenditure for quality improvement and administration functions was also outlined, alongside budgets for the Early Years Pupil Premium (EYPP) and Disability Access Fund (DAF).

Minutes of the Previous Meeting

The minutes of the meeting held on 23 February 2026 were presented for consideration. A previous item concerning the Schools Forum in Operation was noted as being carried over to the next meeting to allow members further time for consideration.

Other Business

No other business was scheduled to be discussed.

Date of Next Meeting

The dates for future Leicestershire Schools' Forum meetings were confirmed.