Agenda item

Report from the Head of Finance (CYPS).

Recommendations:

That Schools Forum:

1.   Note the content of the DfE consultation ‘Upfront funding for mainstream schools: creating a ‘local SEND inclusion formula’’, which closes on 18 September 2026.

2.   Note Rotherham’s position not to submit an expression of interest to participate in the first phase of this approach for the 2027/28 financial year, for the reasons set out in section 6 of this report.

The Head of Finance (CYPS) presented a report informing Forum Members of the DfE consultation - Upfront funding for mainstream schools: creating a “local SEND inclusion formula” - which proposed to enable local authorities to voluntarily transfer funding from the High Needs Block to the Schools Block in order to increase the level of SEND funding mainstream schools received upfront in their core budgets.

It was explained to Forum Members that the driver behind this proposal was to improve parental confidence, reduce pressures on specialist provision and ensure that more pupils with SEND remained within mainstream settings.

The proposal formed part of the wider SEND reform programme and the DfE was seeking local authorities that would be willing to take part in a pilot of the scheme as part of a “test and learn” phase before any wider roll out.

The Head of Finance highlighted to Forum Members the concerns that the council had with taking part in the first, voluntary phase of this scheme, namely:

·       The proposal would not address underlying SEND demand pressures but would merely have the effect of redistributing a fixed pot of existing high needs funding more broadly. There would be no new money brought into the system and the allocation of funds would be driven by national rather than local considerations.

·       Statutory accountability and responsibility to secure the SEND provision required by every child with an Education, Health and Care plan (EHCP) would remain with the council and therefore, the council would also carry the financial and operation risks associated with the proposed funding transfer.

·       There would be no accountability by schools as to how the funding should be used beyond the general requirement to publish an annual inclusion strategy.

·       The funding would not be directly linked to pupils with EHCPs. The funding would not be ring-fenced and as a result, could not be accurately tracked to demonstrate how it had benefited the cohort it was intended for.

·       Given the continuing financial pressures faced by schools, there could be a risk that the funding iwas used to manage wider school budget pressures rather than the additional SEND support it was intended for.

The Head of Finance explained that for the reasons set out above, the council’s position was not to submit an expression of interest to the DfE to participate in the first phase of the scheme for the 2027/28 financial year.

Forum Members discussed the highlighted concerns with the proposals and agreed with the council’s approach. Forum Members commented that it was difficult to see how schools would be able to use the funding in any meaningful way when there would be no increase in funding, just a different application of it. The ongoing fundamental challenge of meeting increasing need with a diminishing amount of funding was unchanged by the proposal.

Forum Members also expressed concern around the potential for additional work for schools and teachers, with no additional support. Forum Members acknowledged that there were some potentially positive aspects to the plan but agreed that the best position would to “sit and watch” for the first phase and see how things developed. It was commented that it could be something that the council wished to participate in if offered again in the 2028/29 financial year.

Resolved:

That the Schools’ Forum:

1)    Noted the content of the DfE consultation - Upfront funding for mainstream schools: creating a “local SEND inclusion formula” - which closed on 18^th September 2026.

2)    Noted Rotherham’s position not to submit an expression of interest to participate in the first phase of this approach for the 2027/28 financial year, for the reasons set out in section 6 of the report.