The Leicestershire Schools' Forum met on Thursday 6 November 2025 to discuss proposals for the SEN Investment Fund and the Exceptional Premises Factor. The forum voted to approve the Local Authority's recommendation to proceed with a formal consultation on a proposed 0.5% transfer of funding from the Schools Block to the High Needs Block for the 2026-27 academic year, intended for the continued investment in the SEN Investment Fund. They also approved the continuation of the exceptional premises factor for 2026-27 and endorsed the submission of a disapplication request to the Department for Education (DfE) to allow this factor to remain operational within the local formula.

Proposal to Extend the SEN Investment Fund for 2026-27

The Leicestershire Schools' Forum discussed a proposal to extend the SEN Investment Fund for the 2026-27 academic year, which would involve a 0.5% transfer of funding from the Schools Block to the High Needs Block. This fund is intended to support children and young people with social, emotional, and mental health (SEMH) needs within mainstream schools.

During the discussion, Salik Khan, the Education Finance Manager for Leicestershire County Council (LCC), presented the rationale for the transfer, explaining it as a proactive investment to build capacity within mainstream schools and support pupils with SEMH needs, rather than directly addressing the High Needs Block deficit. He noted that the Local Authority is involved in the DfE's Delivering Better Value programme, and the SEN Investment Fund is key to this work.

However, concerns were raised by several members. Rebecca Jones, a Maintained Primary Governor, expressed scepticism about the consultation process, suggesting that school opposition might be disregarded by the Secretary of State. She argued that schools already facing deficits would find it harder to recover with further budget reductions. Dr. Jude Mellor, an Academy Secondary Headteacher, highlighted Leicestershire's national underfunding and questioned the process between the transfer proposal and the Secretary of State's final decision. She also raised concerns about the tangible losses schools have faced due to previous fund transfers.

Despite these concerns, the forum voted to approve the Local Authority's recommendation to proceed with a formal consultation with all schools regarding the proposed 0.5% transfer. The vote was 10 in favour, with 2 against and 0 abstentions. The forum also agreed to provide comments on the proposed approach and mechanisms for equitable distribution.

The report accompanying this item detailed the outcome of a four-week consultation with schools, which indicated a clear majority opposition to the continuation of the 0.5% transfer. Key themes from the consultation included a lack of demonstrable impact from the existing fund, concerns about the impact on frontline provision and staffing, and a desire for greater transparency and accountability. The report also outlined two options for funding a sustainable outreach and graduated support offer: either continuing with the School Block Transfer or implementing a per-pupil contribution from schools alongside a commitment to supporting mainstream inclusion. The forum's recommendation on which option to present to the Cabinet was to be included in a report to Cabinet on 18 November 2025.

Exceptional Premises Factor – Disapplication Request

The Leicestershire Schools' Forum also considered a proposal to maintain the exceptional premises factor within the 2026-27 Leicestershire school funding formula. This factor provides financial support for unavoidable rental costs incurred by a small number of schools where these costs are essential for curriculum delivery but are not recognised within the national factors of the National Funding Formula (NFF).

Salik Khan explained that the NFF only permits premises funding under specific nationally defined factors, such as PFI or split-site funding. However, a few Leicestershire schools have rental costs for essential buildings or sports facilities due to estate limitations, planning restrictions, or a lack of on-site provision. These costs have historically been accepted by the DfE as legitimate exceptional premises costs, with funding included in the Leicestershire formula over several years with DfE approval.

The Local Authority proposed to maintain this funding for seven eligible schools in 2026-27, with an estimated cost of £82,670 for 2025/26, to be met from within the Schools Block. This funding is considered immaterial in the context of the overall Schools Block but is material to the financial viability of the schools receiving it.

The forum was asked to approve the continuation of this factor and endorse the submission of a disapplication request to the DfE. The report highlighted that this continuation promotes fairness within the NFF by ensuring that estate constraints do not lead to disproportionate financial consequences for a small number of schools. The Schools' Forum approved the continuation of the exceptional premises factor for 2026-27 and endorsed the submission of the disapplication request to the DfE.

Update on Phase 1 Consultation on Transitioning to a Banded Model for EHCP Funding

Renata Chantrill, Head of Service for Education Sufficiency at LCC, provided an update on the phase 1 consultation for transitioning to a banded model for Education, Health, and Care Plan (EHCP) funding. This proposed shift aims to move from the current funded hours model to a needs-led banding model. The model has been locally developed in partnership with colleagues across Leicester City and Rutland, using needs descriptors to assign funding bands, and has been co-produced with Leicestershire schools.

The consultation is being conducted in two stages. Stage 1, launched on the day of the meeting, focuses on the proposed needs descriptors and banding approach, with feedback sought via a survey distributed through Headteacher Briefings. Stage 2, planned for late autumn to early spring, will focus on funding allocations for each band.

Carolyn Shoyer, representing the Diocese of Leicester, raised concerns that children with EHCPs often have highly complex and individual needs that may not be adequately captured by a banded funding approach, potentially leaving children at risk. Phil Lewin, a Maintained Primary Headteacher, questioned whether the banded system would help reduce challenges with parental requests for increased EHCP funding.

Renata Chantrill clarified that the proposed model would not change how children's needs are assessed but would link funding to a band reflecting those assessed needs, allowing schools more flexibility. Dr. Jude Mellor expressed gratitude for this approach, noting it has been a long-standing request from secondary school headteachers. Martin Towers, an Academy Secondary Governor, questioned whether the proposal included plans to measure the financial impacts on schools with many EHCPs. Renata advised that financial modelling would be part of stage 2, with the overall goal of the transition being cost-neutral.

The Local Authority's recommendation was for the Schools' Forum to note the proposed consultation and timeline, provide feedback on the banded model and consultation approach, and support the engagement of schools in the process.

Update on the SEN Investment Fund

Renata Chantrill also presented an update on the work to date on the SEN Investment Fund, outlining how the Local Authority intended to spend the funds to support children and young people with social, emotional, and mental health needs during the 2025-26 academic year. The offers, co-produced with a working group of schools, were being finalised for launch in the next term.

The proposed offers included fully funded SEMH training for all maintained schools, with contributions towards backfill costs for full-day courses. There was also an extension to existing Oakfield School support for primary in-school alternative provision and outreach, a pilot for primary in-school alternative provision support via new Graduated Response practitioners, and a team of Speech and Language therapists to support the Oakfield Outreach offer for both primary and secondary schools. Additionally, a new Multi-Disciplinary Outreach team, run through the new Oakfield Secondary, was planned for secondary schools, along with the introduction of online consultations for professionals working with children experiencing emotionally-based school non-attendance, led by Educational Psychology Services. A directory of support and advice for schools was also to be introduced.

Carolyn Shoyer expressed support for the proposals, noting their resonance with themes from a report by the Children's Commissioner, Rachel de Souza. Dr. Jude Mellor appreciated the clarity on fund utilisation but raised concerns about the sustainability of some offers and the amount of the fund allocated to staffing, which appeared not yet appointed, potentially delaying staff availability. Pete Leatherland questioned how the proposals would alleviate pressure on the High Needs Block spending or prevent students from obtaining EHCPs, noting a lack of evidence of milestones.

Renata advised that the proposals were designed to support mainstream settings in being more inclusive for children with SEMH needs, aiming for prevention by putting strategies in place earlier. She acknowledged that some strategies would take time to implement and that impact measures would initially focus on delivery. The Local Authority's recommendation was for the Schools' Forum to note the offers to be funded for the 2025-26 academic year and the approach to measure the fund's impact.

Any Other Business

Tim Browne, Director for Education, SEND & Inclusion at LCC, formally ratified the membership of David Warwick as the DNCC Representative, following his unanimous nomination.

The date of the next meeting was confirmed as Thursday 6 November 2025.