The Schools Forum meeting scheduled for Thursday 26 February 2026 was set to discuss the detailed budgets for the Dedicated Schools Grant (DSG) High Needs Block for the 2026-27 academic year, alongside an update on the DSG Deficit Management Plan. The forum was also scheduled to consider the Early Years Block budgets for the same period.

DSG High Needs Block Budgets 2026-27

The meeting was scheduled to review the detailed High Needs Block (HNB) budgets for adoption in the 2026/27 academic year. This included information on the Department for Education's (DfE) confirmed HNB funding for Brent, which was £95.3m for 2026/27, an increase of £4.3m from the previous year. The report indicated that £9.9m of this funding would be recouped by the DfE for direct payment to academies, leaving a balance of £85.4m.

A key point for discussion was the decision to disapply the previously approved 0.5% transfer from the Schools Block to the HNB. This was proposed to align with the Schools Forum's agreement and the government's directive to move towards the National Funding Formula (NFF), as the Schools Block funding was deemed insufficient to sustain the transfer under the NFF funding factors.

The report highlighted that the HNB allocation for 2026/27 was based on 2025/26 funding levels due to the suspension of the High Needs NFF. This meant the allocation did not fully reflect increases in commissioned school places for children with Special Educational Needs and Disabilities (SEND) in 2026/27. The report detailed various budget area changes, including increases in place funding and top-up funding for special schools and mainstream pupils, reflecting rising demand. It also noted a reduction in the recoupment budget due to a change in the process for academies.

The meeting was also to consider the financial implications of SEND reforms, including a £3bn capital investment over four years to create new specialist places in mainstream schools. The report indicated a forecast budgetary gap of £14.9m in the HNB for 2026/27, in addition to the projected cumulative deficit of £18.4m by the end of March 2026.

The report included detailed appendices outlining the HNB budget allocations, movements in budgets, and proposed top-up banding rates for special schools, mainstream schools, and Additionally Resourced Provisions (ARPs).

DSG Deficit Management Plan February 2026

This report was intended to provide an update on the progress of the DSG Management Plan, which aims to support a reduction in expenditure within the High Needs Block of the DSG to a sustainable level. The report noted that the cumulative DSG deficit was forecast to be £18.4m by the end of 2025/26, with an in-year forecast overspend of £4.8m in 2025/26. The primary driver for this deficit was identified as the rising number of children with Education, Health, and Care Plans (EHCPs) without a corresponding increase in DSG HNB funding.

The report detailed Brent's EHCP figures over six years, showing a consistent increase, with an 8% rise between January 2024 and January 2025. This growth was contrasted with the more modest increases in HNB funding. The report also referenced the forthcoming Schools White Paper, which is expected to outline a new policy framework for SEND support.

The update on the HNB Management Plan included refined strategies focusing on improving the sufficiency of local special school places, further developing Brent's SEND support offer, and enhancing the oversight of individual EHCPs. The report highlighted a shortfall in special school places within Brent and outlined a Phase 2 capital programme designed to deliver additional places. It also discussed plans to expand SEND Outreach teams and integrate health, early help, and public health services to improve child development outcomes.

The financial considerations section noted that a statutory override allows local authorities to hold deficit balances against their DSG budgets until 2028. The government had confirmed that future SEND funding implications would be managed within overall Departmental Expenditure Limits (DELs). Grant funding was expected to cover 90% of accumulated SEND deficits up to March 2026, subject to an agreed local SEND Reform Plan. The report projected that, even with this grant funding, the cumulative deficit could rise to £16.7m by March 2027 if the forecast overspend of £14.9m in 2026/27 materialised.

The report also included an appendix summarising the DSG HNB Management Plan for 2024/25 to 2027/28, detailing income and expenditure, unmitigated forecast under/(over) spends, and the impact of mitigating items such as managing demand, improving sufficiency of places, and financial management initiatives.

Early Years Block Budgets 2026/27

The meeting was also scheduled to review the DSG Early Years' (EY) Block funding for Brent for the 2026/27 academic year. The report sought endorsement of the local EY Funding Formula for 2026/27, following confirmation of the EY Block funding, which was £45.4m, representing a 12.9% increase from 2025/26 allocations.

Key points from the report included an increase in maintained nursery schools' supplementary funding and an uplift in the hourly rate. The forum was to consider updates to the Early Years National Funding Formula (EYNFF), including a universal base rate for 3 and 4-year-old funding, a reduction in the deprivation supplement, and adjustments to base rates for 2-year-old entitlements and for children aged 9 months to 2 years. The report also detailed changes to centrally retained funding by the local authority and an allocation for the Special Educational Needs Inclusion Fund (SENIF). A contingency fund was proposed to manage fluctuations in entitlement take-up.

The forum was to note the requirement for local authorities to announce their funding rates to childcare providers by 28 February 2026, a statutory deadline for the financial year 2026/27.