The Ealing Schools Forum met on Thursday 18 January 2024 to discuss school funding for the upcoming academic year and the implications of new childcare reforms. Key decisions included agreeing to retain 5% of the Early Years Block funding for central expenditure and noting the proposed funding formula for Early Years. The forum also reviewed the Schools Block and High Needs Block allocations, noting concerns about budget pressures and increasing demand for SEND support.

School Funding and Early Years Reforms

The Ealing Schools Forum discussed the proposed funding formula for the 2024-25 academic year, focusing on the Early Years Block (EY). Sandeep Sahota, presenting the report, explained that Ealing is part of the first phase of new childcare reforms introduced in March 2023, which include updated guidance from the Department for Education (DfE). Ealing Council consulted with approximately 78 providers, receiving 17 formal responses. A majority of providers supported equalised funding rates for the two-year-old working parent and disadvantaged offers, with the addition of a deprivation supplement for the disadvantaged offer. This approach was seen as a way to minimise administrative burdens.

The forum agreed to retain 5% of the Early Years Block funding for central expenditure, a change permitted by new operational guidance that expands the current 95% pass-through arrangements to all entitlements. Providers expressed a desire for these centrally retained funds to support market management tools, business sustainability modelling, and clarification on charging policies. Officers committed to exploring how to provide further support in these areas.

Regarding inclusion funding, the DfE guidance now mandates that all children should have access to SEN inclusion funding, regardless of the entitlement accessed. Ealing Council proposed increasing the SEN Inclusion Fund to accommodate children eligible for new offers launching later in the year, a move supported by providers. Consultation feedback on the SEN offer for Early Years in Ealing was positive.

The forum also noted that announcements regarding capital funding and wrap-around care funding had been made too late to be included in the report, and these would be discussed at a future meeting.

In response to questions, it was clarified that the 3-4 year old offer is the largest cohort, with approximately 5,500 children, while the disadvantaged 2-year-old offer serves between 850 and 900 children. Initial DfE estimates suggest 800 children will qualify for the new working parent offer and 506 for the under-2s offer. The report indicated a potential gap of around 5% in Early Years capacity by September 2025, which modelling suggests will widen as new entitlements are rolled out. Officers are working to identify sufficiency gaps across Ealing and will discuss how school spaces could be utilised to meet this demand.

The forum also reviewed the Schools Block (SB) and High Needs Block (HNB) allocations. Members noted a real-terms cut in school budgets due to inflation, anticipating that an increasing number of schools would struggle to balance their budgets. A plea was made by Stefan Simms, representative of staff nominated by recognised trade unions, for early consultation with trade unions to avoid compulsory redundancies, given falling school rolls.

Regarding the High Needs Block, the forum noted increasing difficulties in managing demand within available funding, with approximately 3,700 Education, Health and Care Plans (EHCPs) currently in place in the borough. Robert South, Strategic Director for Children's Services, stated that these challenges are being raised with the government by national associations of directors of children's services.

The forum noted an update on forecasted school balances. Mr Simms also invited members to participate in a workload reduction pilot program, with an information meeting scheduled for later in January. A forum member highlighted the Mayor of London's plan to continue funding free school meals for all primary school children for another year, which was seen as beneficial during the cost of living crisis.

The Ealing Schools Forum resolved to:

• Note the Early Years consultation responses and agree the centrally retained level of the Early Years Block at 5%.
• Note and comment on the proposed use of the Early Years Block, and the rates and structure of the Early Years Funding Formula 2024-25.
• Note the value of the Schools Block and budgeted commitments, and comment on the indicative allocations of the Individual Schools Budgets and funding formula factors for 2024-25.
• Note the revised Central Schools Services Block allocations and agree the final allocations.
• Note the value of the High Needs Block and budgeted commitments.
• Ask officers to report further on the Ealing additional needs, SEND and inclusion strategy and financial recovery plan at the next meeting.
• Note an update on forecasted school balances.

Membership

The forum noted the current membership and recent appointments, including Christopher Richards being appointed for a three-year term to represent maintained high schools. The forum also noted current vacancies, particularly in the maintained primary school category, and the chair urged members to keep their respective areas informed.

Minutes of Previous Meeting

The minutes of the Ealing Schools Forum meeting held on 29 November 2023 were approved and signed by the chair as a true and correct record.

Next Meeting

The next meeting of the Ealing Schools Forum was scheduled for Thursday, 18 April 2024.