The Schools Forum was scheduled to discuss the allocation of the Dedicated Schools Grant (DSG) for 2025-26. In particular the meeting was due to discuss the Dedicated Schools Grant budget strategy for 2025-26, the latest funding arrangements for 2025-26 announced by the DfE, and the preferred option for the 2025-26 National Funding Formula for Schools. The forum was also due to note the current position of the Dedicated Schools Grant for 2024-25.

Dedicated Schools Grant (DSG) 2025-26

The Dedicated Schools Grant is provided by central government to local authorities to fund schools. It is divided into four blocks:

• The Schools Block[^[1]]
• The Early Years Block[^[2]]
• The High Needs Block[^[3]]
• The Central School Services Block[^[4]]

The Schools Forum was provided with the latest DSG funding arrangements for 2025-26 announced by the DfE. The forum was asked to note the overall DSG allocation, as well as the allocations for the Central Schools Services Block and the Early Years Block. They were also asked to decide how to implement the National Funding Formula, and how to allocate funding from the Schools Block. The forum was provided with a report that included a proposed allocation of funding based on pupil numbers from the October 2024 Census.

The initial Schools Block allocation is based on the October 2024 census pupil numbers. There has been a significant drop in pupil numbers, and this has also contributed to the change in funding. The provisional pupil number was 39,247, but the actual number of pupils used to calculate the funding is 38,732, a reduction of 515. (2025-26 Dedicated Schools Grant DSG Budget Strategy)

Dedicated Schools Grant (DSG) 2024-25

The Schools Forum was asked to note the current position of the Dedicated Schools Grant. This included the projected year end overspend positions for the Central Schools Services Block and the High Needs Block. The Forum were also provided with an update on the projected underspend in the Early Years Block.

DSG - High Needs Block Update

The Schools Forum was asked to note an update on the High Needs Block, which is the part of the Dedicated Schools Grant that is used to provide for children with Special Educational Needs and Disabilities (SEND).

The forum was told that the projected year end overspend for 2024-25 was £5.17m.

The current projected outturn for the HNB as of July 2024 is a deficit of £5.171m. (2024-25 DSG High Needs Block Update)

This overspend was said to be driven by the cost of independent school placements, the historical top up costs of special schools and academies, and alternative provision. The report identified independent placements as the largest area of overspend, having increased substantially since 2021-22:

IndependentPlacements 7.66 10.52 16.05 16.64 (2024-25 DSG High Needs Block Update)

The report says that there will be a review of independent SEN placements, but it suggests that any reduction in costs would not happen quickly.

The review of independent SEN placements is ongoing and the likelihood of a reduction in costs will only occur between the next 1 to 3 years (2024-25 DSG High Needs Block Update)

DSG - Central School Services Block Update

The Schools Forum was asked to decide on the budget allocations for 2025-26 for the Central School Services Block.

This part of the Dedicated Schools Grant is used to fund services that the local authority provides centrally to all schools. It is divided into two elements:

• Ongoing Commitments, which are calculated by a formula set by central government
• Historic Commitments, which are being reduced year on year.

The forum was told that the total funding available to the block for 2025-26 would be £3,441,822. This represents a real-terms cut in funding because of the year on year reduction in historic commitments, and because of the reduction in pupil numbers reported in the October 2024 census.

The forum was asked to choose between accepting the proposed budget allocations, or rejecting them.

Option 1 – accept the 2025-26 draft plan outlined in table 3 above. Option 2 – do nothing. No reduction in budget allocations. (202526 Central School Services Block CSSB Update)

Attendance Record

The Schools Forum was scheduled to note the attendance record of its members.