The Schools Funding Forum met to discuss the Dedicated Schools Grant (DSG) for the 2025-26 financial year, the Section 251 budget submission for 2026-27, and the financial health of local maintained schools. A significant portion of the discussion was also dedicated to High Needs funding and the implications of the national SEND Reform Programme.

Dedicated Schools Grant - Year End Balance 2025-26

The forum was scheduled to review the year-end position of the Dedicated Schools Grant (DSG) for the 2025-26 financial year. The report indicated a cumulative deficit of £68.973 million carried forward into the 2026-27 financial year. This deficit has been increasing for seven consecutive years, primarily due to High Needs costs rising faster than funding. The report detailed underspends in the Early Years and Schools blocks, but a significant overspend in the High Needs block. The High Needs Stability Grant, intended to cover 90% of the cumulative deficit, was noted as a key factor in the financial outlook, with the remaining 10% falling to the Local Authority.

Section 251 Budget Submission 2026-27

A provisional Section 251 budget statement for the 2026-27 financial year was presented for noting. This statement, required by the Department for Education (DfE), provides a comprehensive overview of planned spending on schools' budgets, de-delegated items, high needs, and early years funding, sourced from both the DSG and the Council's general fund. The document included detailed breakdowns of planned expenditure across various categories, such as Early Years, Primary, Secondary, SEN/Special Schools, and Alternative Provision (AP)/Pupil Referral Units (PRUs). The report also included detailed calculations for the pass-through rates for Early Years funding, demonstrating how allocated funds are distributed to providers.

LA Maintained Schools Balances 2025-26 and Approach to Deficit Schools

The forum was to consider an analysis of the revenue balances of LA maintained schools carried forward from the 2025-26 financial year into 2026-27. The report highlighted a continued trend of decreasing overall school revenue balances, with an increase in the overall deficit position for maintained schools by £3.1 million. The report detailed the total value of school surpluses and deficits, noting a rise in the number of schools reporting deficits. It also provided an analysis of schools in deficit by duration, with 14 schools having had deficits for three years or more. The report outlined the Local Authority's approach to schools facing financial difficulties, including categories for assessing financial health and the required actions for schools in surplus or deficit.

High Needs Funding 2026-27

A significant agenda item concerned High Needs funding for 2026-27, acknowledging the continuing financial pressures within the Special Educational Needs and Disabilities (SEND) system. The report detailed the provisional outturn position for the High Needs Block in 2025-26, showing an overspend of £6.422 million. The national SEND Reform Programme was a key focus, with discussions on its implications for Havering's approach to inclusion, specialist provision, and High Needs funding. The forum was to note the allocation of £2.35 million through the Experts at Hand and Local Authority SEND Transformation Fund, and £2.09 million through the Inclusive Mainstream Fund for Havering schools. The requirement for Havering to secure approval of its Local SEND Reform Plan to access the High Needs Stability Grant was also highlighted. The report indicated that future proposals would be considered through the High Needs Working Group.

Schools Funding Forum Meeting Dates 2026-27

The forum was scheduled to agree the dates for its meetings during the 2026-27 academic year. The report proposed a pattern of six meetings, similar to the previous year, to ensure timely discussion of funding matters and budget-setting decisions.