The Enfield Council Schools Forum met to discuss the Dedicated Schools Grant (DSG) budget, school balances, and other financial matters. The forum noted the updated DSG allocations and budget positions for 2024/25 and 2025/26, as well as the school balances as of 31 March 2025. They also reviewed the process for schools in deficit and the controls on surplus balances.

School Balances

The Schools Forum reviewed a report on school balances as of 31 March 2025. Total school balances were £2.4 million, an increase of £0.9 million from the previous year.

• Deficit Balances: 15 schools reported a deficit revenue balance, totaling £6.4 million, an increase of £0.5 million. The report outlined the process for schools in deficit, including the requirement to produce a deficit recovery plan and the potential for the local authority to issue a notice of concern or warning letter.
• Surplus Balances: Eight schools reported surplus balances above the threshold of 5% and £100,000, totaling £1.7 million. The future arrangements for schools with retained balances above the threshold will be considered as part of the review of arrangements for schools in deficit.

Dedicated Schools Grant (DSG) Update

The Schools Forum received an update on the Dedicated Schools Grant (DSG), a ringfenced grant used to support the schools budget. Ms Melissa Williamson, Strategic Finance Manager, presented the updated DSG allocations and budget positions for 2024/25 and 2025/26.

• 2024/25 DSG Allocations: The updated March 2025 DSG allocations were presented, showing a total DSG of £252.645 million after recoupment and deductions. Changes were due to academy conversions, copyright licences, import/export adjustments, and updated early years funding.
• 2024/25 DSG Outturn: The projected DSG overspend for 2024/25 is £2.7 million, increasing the DSG deficit to £17.418 million. The overspend is mainly due to a £4.8 million overspend on the High Needs block, partially offset by underspends in the Early Years and Central School Services blocks.
• 2025/26 DSG Allocations: The updated March 2025 DSG allocations were presented, showing a total DSG of £271.455 million after recoupment and deductions. Changes were due to academy recoupment and adjustments for direct funding of places.
• 2025/26 DSG Budget: The LA has initially set the 2025/26 DSG budget for each funding block based on the March 2025 DSG funding allocations. Significant budget pressures are expected to continue in 2025/26, including increases in demand for placement costs and the impact of the EHCP banding pilot¹.

Membership

The Forum was advised that Ms Yvonne Alexander has been nominated as a Primary School Governor to replace Ms A Amoafo.

Workplan

The Schools Forum noted and resolved to update the workplan.