The Schools Forum met on Thursday to discuss a range of financial and strategic issues affecting schools in Lewisham. These included the Dedicated Schools Grant outturn position, premature retirement costs, and the Schools Forum work plan. The forum also received a verbal update on the High Needs Block.

Dedicated Schools Grant (DSG) 2024/25 Outturn and 2025/26 Funding Update

The Schools Forum was scheduled to discuss the 2024/25 Dedicated Schools Grant (DSG) outturn position and an initial position for 2025/26. The report pack noted pressures on the DSG, particularly within the High Needs Block¹.

Other key points from the report included:

• The Schools Block was fully spent.
• Early Years showed a provisional £1.3m underspend, subject to clawback.
• High Needs had an overspend of £3.0m.
• School balances showed an overall reduction from £13.0m to £9.9m, a net reduction of £3.1M between 2023/24 and 2024/25.
• 25 schools were in deficit with a total value of £11.0m, while 17 schools had a surplus greater than 15% of their funding, totaling £14.2m.

The report pack stated that the draft (pre-audit) Dedicated Schools Grant Position for 2024/25 was an overspend of £3.0m, an improvement on the original assessment of £6m.

The forum was also scheduled to be updated on the 2025/26 Dedicated Schools Grant. The report pack noted that the Chancellor of the Exchequer delivered the Spending Review on 11 June, setting government department budgets for the next year and confirming spending plans for the following three to four years. The core schools' budget was expected to grow by 1.1% in real terms on a per pupil basis over the next three years. The report pack noted that how this funding is allocated would not be known until the Department for Education (DfE) announces the school's revenue funding settlement for 2026-27, including details of the DSG and other grant funding in December.

Premature Retirement and Redundancy Costs

The Schools Forum was scheduled to discuss a report providing clarity on how the costs associated with premature (including ill-health) retirement and redundancy are met. The report pack noted that the forum was to be reminded of its budgetary responsibilities and the costs incurred due to staff premature retirement and redundancies.

The report pack clarified that early retirement costs should be charged to the school's delegated budget, unless the local authority agrees otherwise for costs to be centrally funded in exceptional circumstances. It also noted that if a member of support staff is made redundant at age 55 years or over and contributes to the Local Government Pension Scheme, the employee's pension will automatically be released early, with all associated costs falling to the school's delegated budget.

The report pack stated that for teaching staff, the Teachers' Pension Scheme generally covers ill-health retirement costs, but these are generally borne by the scheme, not the school directly. In exceptional circumstances, a school may request support from the local authority with ill-health retirement costs, subject to assessment and approval by a panel.

The report pack referenced Section 37 of the Education Act 2002, which sets out how early retirement and redundancy costs should normally be funded. It stated that schools are expected to engage with the Schools' HR service early and follow Lewisham's policies to minimise redundancy costs through redeployment where possible.

Schools Forum Work Plan 2025/26

The Schools Forum was scheduled to discuss its work plan for the 2025/26 financial year. The report pack stated that the work plan may evolve as it becomes necessary to update the forum on relevant matters and to review the proposed schedule of future meeting dates and the work programme. The updated Scheme for Financing Schools and the new Schools Finance Manual were scheduled to be brought to October's meeting.

High Needs Block Update

The Schools Forum was scheduled to receive a verbal update on the High Needs Block, following a High Needs Working Group meeting. Key points mentioned in the report pack included:

• Slower net growth in Education, Health and Care Plans (EHCPs).
• The statutory override of the council's high needs budget overspend, which was due to end in March 2026, has been extended to March 2028.
• The High Needs Block overspend is significantly lower than anticipated, indicating the impact of mitigation work.
• Work is underway to develop a Severe Learning Difficulties (SLD) Unit with 40 places in a primary school, with challenges in the secondary phase.
• Special Educational Needs and Disability (SEND) reforms are coming, with a parliamentary white paper expected in the autumn.

Other Items

The report pack for the meeting also included:

• Apologies for absence from Councillor Naheeda Maharasingam, Cathryn Arnold-Kinsey, and Daniel Meyer. Mala Dadlani was scheduled to be substituted by Floyd Roberts.
• Confirmation of new representatives: Manda George, Increase Esoe, Colin Ngan, Daisy Hooper, Catherine Van Rooyen, and Mickey Kelly.
• Approval of the minutes from the meeting on 20 January 2025.
• A discussion on matters arising, including lobbying at a national level regarding the cost of living crisis and academy vacancies.