The Leicestershire Schools' Forum met on Tuesday 22 September 2026 to discuss the financial sustainability of schools, review the proposed constitution for the forum, and consider updates on Special Educational Needs and Disabilities (SEND) provision. The meeting's agenda also included discussions on the Dedicated Schools Grant (DSG) outturn and early years budgets.

School Forum Constitution

A key item on the agenda was the consideration and potential approval of a revised constitution for the Leicestershire Schools' Forum. This document, intended to be effective from 22 September 2026, aims to provide a clearer and more consistent governance structure for the forum. It outlines the forum's role, membership, voting arrangements, meeting procedures, standards of conduct, and operational expectations. The revised constitution is designed to retain the substance of existing arrangements while presenting them in a more accessible format, structured around the forum's functions, membership, voting rights, attendance, substitutes, terms of office, meeting arrangements, quorum, Chair and Vice-Chair, working groups, urgent business, conduct, agenda setting, decisions, and member expenses. The report recommended that the Schools Forum approve the revised constitution, subject to any amendments agreed during the meeting. It also noted that the constitution should be read alongside statutory frameworks and relevant school finance regulations.

School Sustainability

The forum was scheduled to receive an update on school sustainability, focusing on the financial position of maintained schools across Leicestershire. A report analysed the budgets submitted by the county's 65 maintained schools, commissioned following previous updates that highlighted a deteriorating financial situation. The analysis, conducted by EPI Consulting, tested the reasonableness of budget assumptions and quantified the financial positions within schools' submissions. The review considered each school's budget and three-year financial forecast, staffing costs, pupil-to-teacher ratios, leadership costs, SEND funding, premises occupancy, and the adequacy of any Licensed Deficit Plans. The submitted budgets indicated a total cumulative deficit of £26.50 million by March 2029, with 57 out of 65 schools forecasting a deficit. Key financial themes identified within these submissions included workforce affordability, with median staffing costs exceeding benchmarks, and high leadership costs. The report recommended that the Schools Forum note the headline financial position.

DSG Outturn

An update on the Dedicated Schools Grant (DSG) outturn was presented, highlighting a significant overspend. The report indicated a £30.9 million overspend for 2025-26, primarily attributed to the High Needs Block. This was driven by rising SEND demands, a substantial increase in Education, Health and Care Plan (EHCP) demand (a 23% rise in one year), and increased placement and service costs. The report noted that independent specialist school providers accounted for a significant portion of the High Needs Block spend. The cumulative DSG deficit was projected to reach £79.2 million and potentially trend upwards. While there was potential for government support to fund up to 90% of DSG deficits as of March 2026, this was contingent on the approval of the SEND Reform plan. Mitigation efforts, such as the TISIL programme, had achieved significant cost avoidance, but further actions were deemed necessary for financial sustainability. The report also noted underspends in the Early Years and Schools Blocks. Actions were planned to bring in-year budget monitoring updates to future Schools Forum meetings.

SEND Sufficiency and SEN Investment Fund

The agenda included items on SEND Sufficiency and the SEN Investment Fund, with papers to follow. These items were expected to cover the provision of adequate places for children with Special Educational Needs and Disabilities and the allocation of funds for investment in this area.

Early Years Budget

The Early Years Block Budget for 2026/27 was presented for information only. The report confirmed that Leicestershire County Council had met the minimum pass-through rate of 97% for this budget. The report detailed four different funding streams and confirmed a 97.2% pass-through rate for various age groups, with deprivation being the only supplement applied. The centrally retained amount covered quality improvement, advisory, and administrative costs.