The Royal Borough of Greenwich's Schools Forum met to discuss updates on school funding, financing and admissions. The forum was scheduled to discuss the Dedicated Schools Grant ¹ (DSG) for the years 2025-26 and 2026-27, proposed changes to the Scheme for Financing Schools, and school admissions and pupil numbers. They were also scheduled to review a deficit recovery plan template and a DSG management tool.

School Admissions and Pupil Numbers

The Schools Forum was scheduled to note the current picture regarding school admissions and pupil numbers in the borough. A report prepared for the forum noted that the Royal Borough of Greenwich has a statutory responsibility to ensure sufficient education places are available for all resident children and young people, including those with special educational needs and disabilities (SEND) up to the age of 25.

The report stated that maintaining a balanced and responsive education system is complex, particularly given fluctuating demand for school places and the increasing number of schools converting to academy status, which limits local authority control. The School Admissions and Pupil Numbers Update noted a decline in reception class numbers in recent years, impacting all primary year groups. Specifically, the total number of pupils on roll at Royal Greenwich primary schools in January 2025 was nearly 7% lower than in 2020, representing a decrease of 1,629 pupils.

The report also included data on surplus places for the 2025/26 reception year, stating that there was a surplus of places equating to 19% of all Reception places, which is much higher than the 5% 'headroom' that is considered good practice.

Conversely, the report stated that there has been a rise in secondary school pupil numbers since 2013, with a nearly 12% increase in pupils on roll in years 7-11 between 2020 and 2025. However, projections indicate a reducing demand for year 7 places in the medium term. The report noted that Royal Greenwich is currently a net exporter of secondary pupils, with a net loss equivalent to around 5% of the secondary school population.

The report stated that the annual School Place Planning and Capital Programme 2025/26 2027/28 would be presented to the cabinet on 19 November 2025, and then brought to the Schools Forum on 10 December 2025.

2025-26 DSG – High Needs Block Update (HNB)

The Schools Forum was scheduled to discuss the current financial position of the High Needs Block (HNB) of the Dedicated Schools Grant (DSG). The 2025-26 DSG – High Needs Block Update (HNB) stated that the HNB supports provision for pupils and students with SEND, aged 0 to 25, and alternative provision for pupils unable to receive education in mainstream schools due to exclusion, illness, or other reasons.

The report indicated that the High Needs National Funding Formula (NFF) allocation for 2025-26 is £76.9 million, a 6.53% increase from the 2024-25 allocation. However, after deductions for SEN places and recoupment, the total High Needs Block after deductions was expected to be £69.07 million. The report also noted that the Schools Forum agreed to transfer 0.5% of the Schools Block to the HNB, equating to £1.5 million.

The report identified key areas to be considered within the HNB:

• Independent school placements
• Cost and number of Education Health Care Plans (EHCPs)
• Commissioned Services
• Local Authority Resource Provision (LARP) Funding
• SEN Alternative Provision
• All Outreach Provision

The report projected a £6.56 million overspend within the HNB for 2025-26, contributing to an overall deficit within the DSG. This overspend was attributed to increased demand for Education Health Care Plans and SEN support. The report mentioned a Statutory Override accounting mechanism allowing local authorities to exclude the DSG deficit from main revenue budgets, extended to March 2028 for SEND-related deficits.

The report stated that several initiatives were in development, including:

• EHCP band uplift
• Recognising children and young people awaiting a place in a special school
• LARP places within the borough
• Allocating additional SEN support to schools & academies using a formula
• Reviewing the costs of all independent placements when renewal is due

2025-26 DSG – Central School Services Block Update (CSSB)

The Schools Forum was scheduled to discuss the current funding and spend position for the Central School Services Block (CSSB). The 2025-26 DSG – Central School Services Block Update (CSSB) stated that the CSSB provides funding for local authorities to carry out central functions on behalf of maintained schools and academies.

The report stated that the total CSSB for 2025/26 is £3.412 million, comprised of ongoing responsibilities and historic commitments. Ongoing commitments are calculated using a per-pupil formula, while historic commitments are subject to a 20% reduction compared to the 2024/25 baseline.

The report noted that efficiencies and savings may be achieved in the School Interventions and Targeted Support service areas. Actions to achieve this included reducing costs by increasing efficiency and restructuring services, terminating services that are no longer required, and transferring costs to other DSG blocks.

The report projected a £0.41 million deficit in the CSSB for 2025-26. This was partly attributed to the cost of copyright licenses, which the Department for Education (DfE) now requires to be shown within the CSSB, despite funding being deducted from the DSG at fund level.

2025-26 Dedicated Schools Grant (DSG) Update

The Schools Forum was scheduled to receive an update on the current funding and spending position of the Dedicated Schools Grant (DSG) for 2025-26. The 2025-26 Dedicated Schools Grant (DSG) Update stated that the overall deficit was projected to be £7.32 million.

The report included a table illustrating the projected position:

The report also provided a breakdown of the Dedicated Schools Grant (DSG) allocations for 2025-26 compared to 2024-25, noting increases in the Schools Block, High Needs Block, and Early Years Block, but a decrease in the Central School Services Block.

The report stated that Royal Greenwich has adopted the National Funding Formula (NFF) method of distributing the Schools Block since 2018-19. The projected year-end position for the Schools Block was an overspend of £0.01 million, though this was likely to change as contingency budgets may not be fully utilised.

The report also mentioned de-delegated services, with an overall reduction in de-delegated resources compared to 2024-25. A review of the de-delegated hourly rate for trade union duties was planned to determine sustainability, and the Primary Behaviour Unit budget was also under review.

2026-27 DSG Funding Update

The Schools Forum was scheduled to receive an update on the funding arrangements outlined by the DfE ahead of the 2026-27 National Funding Formula (NFF) allocations. The 2026-27 DSG Funding Update stated that the DfE issued a NFF policy document for 2026-27 for planning purposes on 30 June 2025, with NFF allocations to be published in the autumn.

The report confirmed that the individual NFF factors would operate the same as in 2025-26. It also noted that free school meals (FSM) would be extended to all children in households receiving Universal Credit, allocated as a separate grant and not part of the 2026-27 NFF.

The report stated that in 2026-27, schools and academies were allocated Schools Budget Support Grant (SBSG) and National Insurance Contributions (NICs) grant, and that in 2026-27, these grants will be rolled into the NFF, using pupil characteristics within the NFF.

The report stated that local authorities will continue to determine their local formula in 2026-27, and are expected to move 10% closer to the NFF values, with a +/- 2.5% element of flexibility between the NFF factor values.

The report listed mandatory and optional factors for 2026-27, including basic entitlement, free school meals, income deprivation affecting children index (IDACI), minimum level of per-pupil funding, low prior attainment (LPA), English as an additional language, pupil mobility, sparsity, lump sum, London fringe, split sites and minimum funding guarantee (MFG).

2025-26 Scheme for Financing Schools

The Schools Forum was scheduled to note proposed amendments to the Scheme for Financing Schools (SfFS) as proposed by the Secretary of State. The 2025-26 Scheme for Financing Schools stated that the updates proposed relate to:

• Leasing agreements for maintained schools
• Charging of School Budget Shares-additional Energy Invoice Clause

The report stated that consultations have been issued to stakeholders on the proposed changes, and that the responses would be fed back to representatives for discussion prior to approval of the updates.

The report included two appendices:

• Appendix A: Consultation on leasing agreements for maintained schools
• Appendix B: Consultation on direct charging to schools' budgets for additional energy invoices

Appendix A sought views on the implementation of IFRS 16 Leases for maintained schools, effective from 1 April 2024, and its implications for lease approvals, financial planning, and governance. It noted that the Department for Education (DfE) has issued a class consent for certain types of leased assets, meaning schools do not need to apply individually for approval if the lease falls within the approved categories. Leases not covered by the general consent—particularly those involving land or buildings—must be submitted for approval via the School Land Transaction Proposal process.

Appendix B sought views on a proposed amendment to Section 8.3 of the Scheme for Financing Schools, which outlines the circumstances under which a local authority may charge a school's budget share without the consent of the governing body. The proposed addition was:

The cost of an undisputed invoice for energy where a school has entered into an agreement with the Secretary of State for the supply of energy and failed to pay such an invoice (Regulation 23 of the regulations).

2025-26 Deficit Recovery Plan - Template

The Schools Forum was scheduled to note the revised Deficit Recovery Plan Template. The 2025-26 Deficit Recovery Plan - Template stated that the scheme for financing schools prohibits planning to incur deficit budgets, and that it is the responsibility of the school's Governing Body to ensure that each year's budget plan achieves a balance between anticipated resources and anticipated expenditure.

The report noted that schools are experiencing increasing budget pressures and are struggling to set balanced budgets, and that in 2024-25, 21 schools closed the financial year with deficit balances and are finding it difficult to set balanced budgets in 2025-26. The overall level of Schools' reserves has decreased from £7.67 million to £6.40 million in 2024-25.

The report stated that the revised Deficit Recovery Plan (DRP) template is more comprehensive and requests schools to provide detailed analysis of their staffing structures and plans to reduce spend over the projected period. The revised template looks at staffing establishment, pupil numbers, assumptions underpinning the planned reductions, financial benchmarking and school budget share estimates.

The report included two appendices:

• Appendix C: Current DRP Template
• Appendix D: Revised DRP Template

The current DRP template included sections for:

• Summary
• Profile of proposed loan repayments
• Reason for deficit
• Brief overview as to how the deficit is to be addressed
• Outline of the major features that contribute to setting a balanced budget
• Proposed Deficit Recovery Plan
• Detail of proposed staff changes listed above
• Monitoring requirements

The revised DRP template included sections for:

• Summary
• Actions
• Annual Expenditure Plan
• Staffing Establishment
• Pupil Numbers
• School Budget Share Estimator
• Assumptions
• Benchmarking
• Documents Required
• School Resources Management
• Checklist

2025-26 DSG – Management Tool

The Schools Forum was scheduled to note the DSG management plan template to be used by Royal Borough of Greenwich (RBG) to illustrate the plan to reduce DSG overspend. The 2025-26 DSG Management Tool stated that the current overspend of the DSG is £8.62 million.

The report stated that the DfE have provided the management template to aid in the following:

• Comply with paragraph 5.2 of the DSG: conditions of grant 2025 to 2026
• Forecast and monitor how DSG funding is spent
• Forecast and monitor numbers of education, health, and care plans (EHC plans)
• Highlight areas where LAs may wish to review spending or focus efforts
• Form evidence-based and strategic future plans for the provision of children and young people with SEND
• Present complex funding information in a simple format to Schools Forum and other stakeholders
• Share best practice and initiatives by providing a consistent reporting format

The report stated that the management plan is comprehensive and detailed, and that the key areas are as follows:

• Summary outlining Royal Greenwich's financial position and current trends and strategic goals
• Financial Summary outlining the financial data for each funding block within the DSG, including financial forecasts for the next 3 years
• Children and Young People Summary outlining the EHCP data, trends, and projections
• Governance & Management- outlining the sign-off procedures by finance and SEN lead officers
• Stakeholder Engagement outlining the records of consultations to Schools Forum and Parents & Carers
• LA Summary outlining the key risks, mitigations, and workforce strategies, combined with assumptions and commissioning arrangements
• Placement Types- outlining the different types of placements and expenditure forecasts

The report included a sample template.

Other Matters

The agenda for the meeting of 8 October 2025 also included:

• Apologies for Absence
• Declarations of Interest
• Approval of the minutes of the previous meeting held on 16 July 2025
• A review of actions arising from previous meetings
• A review of the attendance record of the forum