Agenda item

Report from the Head of Finance (CYPS).

Recommendation:

That Members of Schools Forum note the contents of this report.

The Head of Finance provided details on the 2026/27 schools funding settlement for Rotherham, as announced by the Department for Education in December 2025.

The total provisional Dedicated Schools Grant (DSG) allocation for Rotherham amounted to £391.148m representing an overall increase of £23.505m compared with the previous year.  The DSG continued to be made up of the Schools, High Needs, Early Years, and Central Schools Services blocks and funding allocations were noted as follows:-

·       Schools Block funding                                   £271.959 million

·       Central Schools Services Block funding      £2.488 million

·       Early Years Block funding                       £49.712 million

·       High Needs Bock funding                       £66.989 million

Attention was drawn to the rationale for the various increases in funding with particular attention drawn to the continued fall in pupil numbers, which was directly impacting the Schools Block despite overall funding increases.

The Head of Finance went on to explain that this was a year of national transition, with the High Needs National Funding Formula suspended and major SEND reforms expected in 2026. Early Years funding had risen significantly due to the Government’s expansion of childcare entitlements, while the High Needs Block continues to face the greatest financial pressure, intensified by the forthcoming end of Safety Valve support.

The Forum was advised that Pupil Premium Grant allocations for 2026/27 were still to be confirmed, and that forthcoming national changes to free school meal (FSM) eligibility from September 2026 would significantly widen entitlement. The PE and Sport Premium was expected to continue at similar levels to 2025/26, with allocations based on pupil numbers recorded in the January 2025 census.

The Forum discussed the suspension of the High Needs National Funding Formula and the challenges this presented for planning a longer?term strategy.

Members queried the potential impact of future changes, and it was noted that significant national reform was expected, with the forthcoming publication of the SEND White Paper.   

The Forum also considered the continuing fall in overall pupil numbers alongside rising numbers of pupils with Education, Health and Care Plans (EHCPs). It was confirmed that the reduction of 467 pupils related to total school?age population within the Schools Block and did not include special schools. High Needs demand was expected to continue rising, including within mainstream settings.

Questions were raised regarding the forthcoming widening of FSM eligibility from September 2026 and specifically implications for special schools. It was noted that no specific funding guidance had yet been issued for special schools, and indicative analysis had identified that the changes may not lead to a significant net increase in eligible pupils due to transitional protection changes. Funding arrangements for free school meals would be managed separately and would not form part of the DSG.

Members also sought an update on potential High Needs top?up rate increases from April. It was confirmed that the High Needs budget was still being developed and would be reported to Schools Forum in March. Given rising EHCP numbers and bespoke cost pressures, no indication of uplift levels could yet be provided, and further internal discussions remained ongoing.

The Forum was advised that a discussion with the DfE had been arranged to consider approaches to deficit management and longer?term financial planning.

Resolved:

That the Schools Forum noted the content of the report.