Agenda item

Report from the Head of Finance (CYPS).

Recommendations:

That Schools Forum:

1.    Note the outcomes of the recent consultation with schools regarding the proposed transfer of funding to the High Needs Block.

2.    Approve the Council’s proposal to transfer 0.5% of the Schools Block funding in 2026/27 to the High Needs Block to help address ongoing cost pressures.

The Head of Finance presented a report which focused on Part B of the Schools Funding Formula consultation outcome and specifically the proposed percentage transfer of funding from the school’s block to the high needs block of the Dedicated Schools Grant for 2026/27.

Consultation was undertaken in November 2025, and 62 responses were received, representing a 49% response rate. Of those responses, 53% of schools supported the transfer, while 47% opposed it.  No contextual comments were provided by schools to explain the reasons for opposing the proposal.

It was acknowledged that the consultation outcome reflected an improvement compared to last year’s 38% support.  The increased support was considered a positive reflection of the work undertaken over the past year to raise awareness of SEND challenges through discussions at the Rotherham Schools Forum.

The rationale for the transfer was based on significant High Needs funding pressures caused by rising SEND demand, an increase in Education, Health and Care Plans (EHCPs), and costly out-of-authority placements.

The 2025/26 financial year was the final year of Department for Education Safety Valve support, and no further government funding was expected.

The impact on schools was expected to be minimal as the transfer represented a small proportion of the £270m Schools Block. A Minimum Funding Guarantee of 0% would ensure that no school experiences a reduction in per-pupil funding compared to 2025/26. The local funding formula would also align with the National Funding Formula to provide transparency and stability.

The SEND Sufficiency Strategy continues to address challenges through actions such as expanding specialist provision and resource bases, reducing reliance on independent placements, improving governance, and collaborating with schools to maintain pupils in mainstream settings wherever possible.

Concerns about pressures on SEND and SENCO funding in particularly for smaller primary schools were discussed and clarification was sought on whether the 0.5% transfer would offset existing challenges or impact current school operations.   The Head of Finance explained that the transfer has been applied for several years and was embedded within the funding formula, representing a deduction from the overall DSG position rather than an additional burden.

The Forum noted that a number of primary schools had responded opposing the proposal, which prompted discussion on whether this was due to budgetary concerns or other underlying issues. The Assistant Director for Education and Inclusion confirmed that they had written to the CEO of one Multi-Academy Trust in an attempt to understand their position.

Forum Members highlighted pressures across the system, including assessment demands, Ofsted frameworks, and the increasing complexity of SEND needs. 

The Head of Finance explained that the proposed transfer represented a contribution towards managing High Needs funding pressures rather than a solution to the cumulative DSG deficit.  Uncertainty remained around central government plans post-2028, reinforcing the need for a prudent approach to continue mitigating deficits locally.

Discussions also acknowledged wider societal challenges, including the impact of child poverty and the central government plans to address these issues. It was highlighted that increasing levels of need in Reception and Key Stage 1 reflected broader social challenges and the importance of early support for young children.

Having considered the outcome of Part B of the consultation the Schools Forum were required to undertake a vote to establish whether the Forum supported the proposal to transfer 0.5% of schools block funding to the high needs budget. 

Of the school members eligible to vote on this matter, 13 voted in favour of the proposal, one voted against the proposal and there were no abstentions.  Therefore, the proposal was agreed.

Resolved:

1.       That the Schools Forum notes the outcomes of the recent consultation with schools regarding the proposed transfer of funding to the High Needs Block.

2.       That the Schools Forum approves the Council’s proposal to transfer 0.5% of the schools block funding in 2026/27 to the High Needs Budget to help address ongoing cost pressures.