Agenda item

Report from the Principal Finance Officer (CYPS).

Recommendations:

That Schools Forum:

1.      Notes the latest DSG funding for schools for the 2025/26 financial year.

2.      Notes the forecast positions of Rotherham’s maintained schools and the centrally retained DSG budgets for the year.

The Head of Finance (CYPS) presented a report on the latest position of the school’s budget for 2025/26 and commented on the following:

·       The January DSG funding allocation which had remained unchanged from the November position.

·       An additional DSG update received which confirmed an increase to the DSG position for 2025/26, reflecting additional Early Years funding.

·       The forecasted position for the Centrally Retained Schools Block and the factors that were attributable to the variance.

·       The ongoing management of the DSG deficits which had been due to the cumulative impact of demand challenges and cost pressures facing the SEND system over recent years.

·       The conclusion of the Safety Valve Programme on 31 March 2026 and future sustainability being addressed through the SEND reforms and associated SEND Action Plans.

·       The High Needs Stability Grant which would provide financial support to authorities with DSG deficits at the end of 2025/26, covering up to 90% of accumulated deficits, subject to approved SEND reform plans.

·       The February forecasted delegated schools budget position for maintained schools, which indicated a reduction in surplus balances compared to the 2024/25 outturn, largely due to academy conversions, alongside increased financial pressures. The February monitoring position also highlighted an overall improvement in reported balances against the original budget, driven mainly by improved positions in primary, nursery schools and the PRU.

·       The three schools who were operating under licensed deficits in 2025/26, two of which would receive support through the Schools in Financial Difficulty fund, with all schools having agreed recovery plans in place and subject to ongoing monitoring

A Forum member reflected on admissions and appeals costs within the Central Schools Services Block, particularly the perceived fairness of costs falling on schools with higher levels of parental preference and suggested that alternative funding mechanisms for appeals could be explored. It was noted that these pressures had been raised previously in other meetings and are recognised as system?wide challenges.

Following a comment made relating to the equity of de?delegated funding arrangements for maintained schools, the Head of Finance clarified that DSG was managed as a single funding pot and could not be ringfenced for specific sectors, reflecting national requirements.

Forum Members sought assurance regarding the position at the conclusion of the Safety Valve Programme and the approach to managing remaining DSG deficits. Members were advised that progress against Safety Valve plans had been subject to regular performance reporting to the DfE, with performance and financial targets monitored throughout the year. Access to the High Needs Stability Grant was conditional on the submission, approval and ongoing monitoring of local SEND reform plans with any delays potentially affecting the timing of grant allocation.

The Forum also sought clarification on the Early Years underspend and whether projected participation, eligibility levels, and birth?rate trends would be reflected in future funding. The Head of Finance confirmed that Early Years funding operated on a lagged basis, with adjustments made once updated census data was available, and that local budgets were set using reasonable projections to reflect expected participation and demographic change. Members were advised that funding adjustments were applied nationally and that planned changes to termly funding from next year were expected to reduce the levels of future adjustments.

Further discussion focused on pressures within the High Needs system, including the projected post?Safety Valve deficit, the effectiveness of the programme, future demand management, and the sustainability of SEND provision. Members raised concerns regarding placement sufficiency, system capacity, and the impact on schools and staff, and emphasised the importance of ensuring decisions remained needs?led.

The Head of Finance indicated that the Safety Valve Programme had delivered on the expansion of local provision, it had also increased outreach, reduced reliance on independent placements and a number of tribunal cases had also been successfully challenged. It was emphasised that the remaining deficit reflected funding constraints rather than programme failure, and that financial considerations did not drive individual placement decisions.

In light of the concerns raised regarding pressures within the High Needs system, Forum Members agreed that a detailed update on SEND sufficiency and place planning would be welcomed for discussion at a future meeting.

Resolved:

That the Schools Forum:

1.      Noted the latest DSG funding for schools for the 2025/26 financial year.

2.      Noted the forecast positions of Rotherham’s maintained schools and the centrally retained DSG budgets for the year.