The Schools Forum of Lewisham Council was scheduled to consider updates on the Dedicated Schools Grant (DSG), including final outturn positions and future projections, as well as proposed changes to the Scheme for Financing Schools. The forum was also scheduled to discuss responses to Department for Education (DfE) consultations on early years funding and SEND reforms.

Scheme for Financing Schools

The Schools Forum was scheduled to be updated on changes required by the Department for Education (DfE) to the Scheme for Financing Schools. These changes were legislative and did not require consultation. The report was for information, outlining updates to the scheme that governs the financial relationship between the local authority and its maintained schools. The scheme details financial controls, the treatment of surplus and deficit balances, income, charging of school budget shares, taxation, and the provision of services by the local authority. The report author was Grahame Craig, Business Partner.

Updates on SEND Matters and SEND Reform Implementation

The Schools Forum was scheduled to receive an update on Special Educational Needs and Disabilities (SEND) matters, including the SEND Reform Implementation Plan and feedback from the High Needs Subgroup. This update was intended to inform the forum on the 2026/27 Dedicated Schools Grant (DSG) High Needs Block and the implementation of national SEND reforms in Lewisham. A verbal slide presentation was anticipated.

2026/27 Disapplication Request

A report was scheduled to be presented to the Schools Forum concerning a reapplication to the Department for Education (DfE) for an exception factor for St Michaels school. This request related to a service charge of £21,925. Previous applications for this exception factor had been successful, but the local authority was required to reapply annually. The report detailed the notional financial impact of the request on schools, with most schools experiencing minimal variance, though three schools were scheduled to see an impact above £1,000. St Michaels itself was scheduled to face a significant impact of £21,801 if the request were refused. The report author was Grahame Craig, Business Partner.

Response to DfE Consultations

The Schools Forum was scheduled to be updated on the local authority's response to recent DfE consultations. Two specific consultations were detailed:

• Consultation on Early Years Funding: This consultation sought views on proposed changes to the early years funding system associated with the current offer of early years entitlements, including updates to the Area Cost Adjustment (ACA) and Index of Multiple Deprivation (IDACI) data, and proposals for transition in 2027-28. Lewisham's response indicated concerns about potential reductions in funding rates and advocated for transitional protections and local flexibility in funding distribution. The response also addressed proposals for the redistribution of unused contingency funding, the reduction of permissible local funding supplements, and the separation of funding for local authority central services.
• Consultation on Upfront Funding for Mainstream Schools: This consultation explored how local authorities could provide upfront additional SEND funding to mainstream schools by rebalancing high needs and schools budgets. Lewisham's response indicated that they did not seek to participate as a pilot authority due to unresolved implementation questions and potential financial pressures. The response highlighted concerns about the lack of detail on how funding transfers would be facilitated and integrated into local funding formulas, as well as the potential for increased applications for additional funding.

The report author for both consultations was Grahame Craig, Business Partner.

DSG 2025/26 Update and 2026/27 Update

The Schools Forum was scheduled to receive an update on the Dedicated Schools Grant (DSG) for 2025-26 and 2026-27. The 2025-26 final outturn position was scheduled to show a balanced schools block and central school services block, but an overspend of approximately £5.5m in the High Needs Block, contributing to a cumulative deficit. The Early Years block funding was scheduled to be reduced by £0.2m following data validation. Schools Forum was requested to approve the transfer of £1.1m from the Early Years block to support the High Needs Block in 2026-27.

The 2026-27 DSG allocation was scheduled to show a projected overspend of £10.0m in the High Needs Block. The report also provided an update on pay awards, confirming a 3.5% teachers' pay award and a 3.3% support staff pay award, with schools expected to meet 1.8% of these costs directly. Changes to free school meal eligibility from the 2026-27 academic year were also outlined, expanding eligibility to households receiving Universal Credit. The report noted the phasing out of the PE and Sports Premium and its replacement with a new PE and School Sport Partnership Network from April 2027. Finally, feedback on the June 2026 budget plans submitted by schools was scheduled to be presented, highlighting concerns about the number of schools suggesting an inability to set a balanced three-year budget. The report author was Floyd Roberts, Senior Business Partner.