The Schools Forum meeting on 22 January 2026 discussed the allocation of funding for the upcoming academic year, with a significant focus on the pressures within the high-needs block. Decisions were made regarding the transfer of funds and the approach to supporting pupils with special educational needs and disabilities (SEND).

School Budgets for 2026-2027

Luke provided a verbal update on the Dedicated Schools Grant (DSG) allocation for 2026-2027, highlighting key figures for different blocks of funding. The schools' block, totalling £726.9 million, will continue to be set using the national funding formula. The minimum funding guarantee is expected to remain at 0%, with affordability managed through a per-pupil gains cap estimated at around 2.8%. A significant development is the approval by the Secretary of State for a request to transfer 0.5% of the schools' block DSG to the high-needs block, a decision that Councillor Steve Barr expressed disappointment with, stating, it would make me feel better if the chair wrote to the Secretary of State to express schools' forum's disappointment that the Secretary of State had seen fit to overturn what was, well, I think there was one abstention, but what was effectively a unanimous decision of the schools' forum. ¹

The central school services block is allocated £5.9 million for local authorities to carry out central functions. Within this, historic commitments funding is now lower than required for prudential borrowing, leading to an application for funding protection from the Department for Education (DfE). An underspend of approximately £0.5 million is forecast in the ongoing commitments allocation, which will be transferred to the DSG deficit.

The early years block stands at £166.1 million, marking the first full year of new entitlements. Despite increases, all rates remain below the national average, with the three- and four-year-old rate at the funding floor. A positive discussion with early years providers on funding distribution took place at a workshop on 13 January.

The high-needs block, totalling £156 million, was also discussed, with further details available in a separate report. Notably, the early years block is now larger than the high-needs block. Councillor Steve Swatton sought clarification on the 2.2% increase for the schools' block, confirming with Luke that this represents 2.2% of new money. ²

Tim Hopkins, representing early years representatives, expressed gratitude for the funding workshop, acknowledging the council's efforts to understand and address pressures across all elements of early years provision. Tom James questioned the fairness of the capping adjustment, noting that his semi-rural primary school had lost £129,000 over two years due to this adjustment. Luke explained that the cap is one of the few tools available to ensure affordability within the national funding formula.

High Needs Block Pressures and SEND Reforms

Sarah presented an update on the high-needs block for 2025-2026, outlining a forecast overspend of around £45 million, an increase from the previous quarter. Key variances include overspends in school top-up budgets, special schools and academies, independent special schools, independent mainstream schools, alternative provision, and post-16 provision. This overspend is contributing to a significant decline in the DSG reserve, projected to reach nearly £100 million by the end of the year, with an accumulated deficit potentially exceeding £500 million by 2030-2031.

The government's statutory override requires accumulated DSG deficits to remain ring-fenced until the end of 2027-2028, effectively acting as a temporary overdraft. Staffordshire is already losing £4 million annually in lost interest due to the deficit. While central government has indicated that local authorities will not be expected to fund future special educational needs costs from general funds after 2027-2028, support will be linked to assurances of steps towards an inclusive education system.

The DfE has temporarily suspended the High Needs National Funding Formula for 2026-2027 while reviewing the system. Staffordshire's settlement for 2026-2027 is £156 million, an 8.6% increase, but this largely represents the rolling in of legacy grants, leaving the settlement effectively frozen at 2025-2026 levels and £7 million worse than expected. A further overspend of around £60 million is forecast for 2026-2027, even with the approved 0.5% transfer from the schools block. This transfer is contingent upon demonstrable evidence of enhancing inclusive mainstream provision and investment in locally-based provision and early intervention.

A decision has been made to suspend the withdrawal of the special schools' lump sum element from their budgetary allocation for 2026-2027. This element will remain at the 2025-2026 level. Staffordshire is part of the F40 Group, a campaign group lobbying for education reform and fairer funding, whose analysis indicates Staffordshire's High Needs Block allocation per pupil is the sixth worst in the country. Tim Hopkins urged members to use F40's campaign materials to lobby their local MPs.

Halit Hulusi provided an update on the SEND AP Strategy and Improvement Plan, noting the upcoming white paper and the need for a six-week response plan. Strategies such as Enhanced Assess, Plan, Do, Review (EAPDR) and CEDIS support teams are being implemented. A key initiative is the rapid development of enhanced resource bases in mainstream schools, with a target of 40 to 50 such provisions expected to commence rollout in September 2026. Halit also highlighted that the Centre of Inclusion Hubs are making the highest number of requests for CEDIS support.

Councillor Tim Hopkins raised concerns about the well-being of school and setting leaders, citing instances of consultations for places being received very close to or during school holidays, causing uncertainty. Alice, from the council, apologised for any blip in the consultation process and assured that the council is mindful of the well-being of colleagues. She also confirmed that a methodology for engaging the wider partnership in responding to the white paper is being developed.

Notices of Concern and Licensed Deficit Agreements

Mel reported that since the last forum, a Notice of Concern has been issued to Bert and Prue for a forecast deficit in 2026-2027.

Matters Arising

Steve Barr raised a query regarding the possibility of new schools becoming local authority-maintained schools rather than academies, and the potential for academies with broken trust relationships to be taken back into local authority control. The advice received is that this is a matter for the local authority to take up with a regional DfE contact, and decisions are likely to be delayed until the publication of the new white paper, expected in February.

Steve Barr also enquired about updates on the wraparound care programme. Tim confirmed that the programme will end on 31 March 2026, and no additional places should be funded after this date. Year one funding can be carried over, and additional year two funding can only be used if all year one funding has been spent or committed. The council is confident this requirement has been met and has submitted an interim statement of grant expenditure. They are requesting additional activity cost funding of approximately £200,000 for a second year of wraparound inclusion pathway training.

Simon Humble noted a change in membership for the forum, with Sarah Bamber replacing Kerry Jefferson as the representative from Maintained Prue, effective from the next meeting.

Next Meeting and Work Programme

The next Schools Forum meeting is scheduled for Thursday, 26 March, and will be held via Teams. Councillor Steve Barr requested that an item be added to the work programme regarding further updates on the wraparound care funding, which Simon Humble agreed to arrange with Tim outside of the meeting.