The Shropshire Council Schools Forum met to discuss school funding and related issues. The forum received updates on the Dedicated Schools Grant (DSG), school revenue funding, and the school library service, and agreed to create a High Needs Block (HNB) monitoring group. The forum also reviewed the minutes from the previous meeting.

Dedicated Schools Grant Monitoring

The Schools Forum received an update on the Dedicated Schools Grant (DSG) monitoring for 2025-26. The report outlined a forecast in-year deficit of £19.323 million, which, when added to the £17.566 million deficit carried forward from 2024-25, results in a cumulative DSG deficit of £36.888 million.

The report highlighted several factors contributing to the deficit, particularly within the High Needs Block (HNB). These included:

• Top-up funding to mainstream schools: A forecast overspend of £5.318 million was attributed to increased requests for Education, Health and Care (EHC) Needs Assessments and the issuing of EHC plans.
• Top-up funding to special schools: A forecast overspend of £4.021 million was linked to changes in top-up funding levels for Shropshire special schools, as well as an increase in pupil numbers at Keystone Special School.
• Non-Maintained and Independent Providers: Expenditure in this area is forecast to be 21% higher than 2024-25, resulting in a £7.546 million overspend. The council has experienced a sharp increase in demand for independent special school placements, particularly for post-16 students.

The report noted that Shropshire Council officers met with representatives from the Department for Education (DfE) on 7 July to discuss addressing the DSG deficit and progress with the DSG management plan.

Schools Revenue Funding Update

The Schools Forum received an update on schools' revenue funding for 2025-26, as per the guidance published by the Education & Skills Funding Agency (ESFA) in December 2024. The report highlighted that Shropshire Council has mirrored the national funding formula (NFF) in its local funding formula since 2018-19.

Key points from the update included:

• Primary and Secondary Unit Funding: The primary unit of funding (PUF) is £5,661 per pupil, and the secondary unit of funding (SUF) is £6,829 per pupil.
• Formula Changes: Split site funding must follow the national formula, and growth and falling rolls are now formula-driven. Grants are consolidated into the baseline.
• Minimum Per Pupil Funding Levels: The minimum per pupil funding levels are £4,955 for primary schools and £6,050 for secondary schools.
• Minimum Funding Guarantee (MFG): The NFF funding floor is 0.0% for 2025-26.
• Schools Block Transfers: Local authorities can transfer up to 0.5% of their schools block to other blocks of the DSG with Schools Forum approval.
• High Needs Funding: The national increase in high needs funding from 2024-25 to 2025-26 is £850 million, representing a 7% uplift.
• Central School Services Block (CSSB): The CSSB continues to fund local authority central functions for pupils in maintained schools and academies.

Creation of High Needs Block Monitoring Group

The Schools Forum agreed to establish a High Needs Block (HNB) monitoring group. The purpose of this group is to closely analyse the HNB management plan and jointly develop strategies to support recovery work and communication. The group will include representatives from various types of education providers in the area to increase awareness of local issues. The monitoring group will also link to the SEND and AP Partnership Board¹.

School Library Service

The Schools Forum received a presentation on the School Library Service (SLS). The presentation highlighted significant cost pressures on the SLS and the need for schools to support the service. The move to a 'pay as you go' system means that it is imperative for schools to use the service to ensure its sustainability.

The presentation noted that some schools are not even meeting the minimum amount to qualify for delivery (£150). The new tariff is designed to be flexible and affordable, featuring popular items requested by schools. The presentation included price comparisons showing potential cost savings for schools using the new tariff.

The SLS is now based at The Lantern, Meadow Farm Drive, Shrewsbury, and all ensemble activities are free of charge.