The Northumberland Council Schools' Forum met to discuss the Dedicated Schools Grant (DSG) outturn for 2024-25, school balances, and the scheme for financing maintained schools. Also on the agenda was a discussion of an article from the Chartered Institute of Public Finance and Accountancy (CIPFA) on special educational needs and disabilities (SEND) funding. The Schools' Forum was also scheduled to review its work programme and meeting dates for 2025-26.

Dedicated Schools Grant (DSG) Outturn 2024-25

The Schools' Forum was scheduled to review a report on the Dedicated Schools Grant (DSG) outturn position for 2024-25. The report noted an overall overspend of £8.052 million, which was attributed to underspends in the early years and schools blocks, a small overspend in the central schools block, and a significant overspend of £9.187 million in the high needs block.

The report pack broke down the overspend in the High Needs Block:

• The Education Other Than at School (EOTAS) service had a £0.162 million underspend, driven by increased pupil transport costs and overachievement of income through reclaimed Age Weighted Pupil Unit (AWPU) and associated high needs fundings from academies.
• There was a £0.321 million underspend across the Low Incidence Needs Team, High Incidence Needs Team and Central Services due to short term vacancies and successful renegotiation of grant income from the NHS concerning historic pay awards.
• The Independent Schools budget overspent by £0.624 million because the number of children placed in external residential placements increased by approximately 35%.
• There was a significant £8.671 million overspend on SEN top-ups, stemming from 22.49% Education, Health and Care Plan (EHCP) growth in 2024-25.
• There was an overspend of £0.199 million on notional SEN payments, linked to more children with EHCPs in mainstream schools and associated additional place funding required to maintain those pupils.
• There was a £0.099 million underspend on Personal Budgets, as despite increased demand for services parents purchased directly, the growth was offset by reclaiming funding from previous years which was unspent by families and an underspend on specialist equipment.
• Additional place funding at Primary Support Bases and Specialist Support Bases (SSB) overspent by £0.080 million as additional places were required through the year as a response to EHCP growth.
• There was a £0.215 million overspend in the Inclusion Budget because the demand for the service was at the highest it has ever been and the number of exclusions across Northumberland growing quickly through the year resulting in an overspend across additional therapies, professional services and alternative provision/PRU placements.

The report noted that the overall DSG reserve had significantly decreased from a £1.159 million surplus to a £8.052 million deficit in 2024-25. It also indicated that the deficit on the High Needs block reserve could rise to between £17.1 and £19.8 million by the end of 2025-26.

The report pack stated that the Department for Education (DfE) recognises that SEND provision challenges are not unique to Northumberland Council, but represent a national issue affecting local governments across the UK.

Maintained School Balances as at 31 March 2025

The Schools' Forum was scheduled to be informed of the position regarding maintained school balances as of 31 March 2025. The report pack specified limits for schools regarding the maximum levels of uncommitted balances they are allowed to carry forward:

• Primary/Special schools: 16% of the new financial year budget share
• Middle/High schools: 10% of the new financial year budget share

Any funds in excess of this figure need to be supported with details of future spending intentions. Similarly, licensed deficit applications are required from schools in a cumulative deficit position.

The original aggregated balances figure brought forward into 2024/25 was £7.889m (as at 1 April 2024), as reported to Schools Forum in July 2024. Of the 98 schools that remained maintained throughout 2024/25, overall balances fell by £1.978m (25.3%), from £7.813 million to £5.835 million.

Scheme for Financing Maintained Schools 2025/26

The Schools' Forum was scheduled to review and approve the revised Scheme for Financing Maintained Schools for the period commencing 1 September 2025. Local authorities are required to publish schemes for financing schools, setting out the financial relationship between them and the schools they maintain.

The report pack noted one minor change provided by the DfE: the inclusion of an extra item where a school's budget share may be charged, in relation to energy invoices.

Communication: CIPFA Article Fixing SEND Finance

The Schools' Forum was scheduled to review an article from the Chartered Institute of Public Finance and Accountancy (CIPFA) titled Fixing SEND finance: Five key reforms to build a sustainable system . The article's author, William Burns, Social Care Policy Advisor, wrote that a decade of missed opportunities has left England's Special Educational Needs and Disabilities (SEND) system for children and young people in crisis.

The CIPFA report outlined five key principles for reform:

• Funding: Allocating resources based on actual needs rather than outdated formulas.
• Early intervention: Establishing a shared understanding of best practices and defining measurable outcomes.
• Coordination between partners: Creating a framework for how education, health, and care partners to work together effectively.
• Market management: Fixing the independent placement market to drive consistency, quality, and value for money.
• Financial accountability: Giving councils greater flexibility to meet needs while ensuring sustainability.

2025/26 Work Programme and Meeting Dates

The Schools' Forum was scheduled to review its work programme and meeting dates for 2025-26.