Agenda item

          The Forum was presented with the Dedicated Schools Grant (DSG) and School’s Funding for 2026-27. The gross Schools Grant allocation for 2026/27 was announced on the 17th December as £178.850m and broken down as below with the current year equivalent figures shown in brackets:

• Schools Block £122.425m (£117.833m)
• Central Schools Services Block £ 0.768m (£ 0.765m)
• High Needs Block £ 31.877m (£ 29.267m)
• Early Years Block £ 23.781m (£ 20.686m)

          It was noted that there was no update on the national funding formula for 2026 unlike previous years which was why October’s meeting was cancelled. There was an increase of roughly £10.3 million for the DSG from the DfE (Department of Education) for 2026. The Schools Block provided funding for maintained schools and academies. Any school grants are part of DSG funding; therefore, the Schools Block increase included the Schools Budget Support Grant which was £3 million of the School Block’s increase.

          Policy stated that the Council followed the National Funding Formula and this would be mandatory in the future. Funding allocations from the DfE were based on this formula. The Forum needed to determine the Minimum Funding Guarantee (MFG) which had to be between -0.5% and 0%. The MFG at 0% would reserve £92,000 of the £122 million which officers recommended being transferred from the Schools Block and moved to the Central Services Block to be used as protection for schools who had experienced the highest drops in pupil numbers. The methodology for this was highlighted in Appendix A. The Forum could determine if this would become a ‘rolling fund’ or ‘growth fund’. If the MFG was reduced to -0.5% then this would be £40,000 which would go into the funding formula to be allocated to all schools.

          It was confirmed that the headroom funding had not been transferred to the Central Services Block before but pupil numbers in schools were reducing annually. The money had previously been used for contingency to help with staff redundancies. If the money was allocated to the Central Services Block and allocated for falling pupil numbers, 17 schools would benefit from it.

          Forum Members stated that as schools had different issues, the money should not be used to go to all schools in Halton, regardless of whether they needed the money, and it should go to contingency to help with staff redundancies and schools who have an aging workforce. Some schools may have falling pupil numbers but may not be able to afford redundancy payments.

          Officers noted that the money could be moved to the Central Services Block and allocated at a later date.

          It was acknowledged that some schools needed to take out loans to pay for staff redundancies. If the headroom funding was allocated for contingency, it would be insufficient for the number of schools who would need a restructure and make redundancies. Officers noted that they could only see the budgets of maintained schools.

          Regarding the place planning work, this work was ongoing, but it highlighted the financial difficulties that schools were having. Pupil numbers had reduced in Runcorn and were set to reduce further in the future but were more stable in Widnes. Officers noted that the suggested allocation of the headroom funding could a onetime allocation.

          RESOLVED:

1. That the report be noted.
2. That the Forum support the continuation of the National Funding Formula (NFF) methods, principles and rules for mainstream primary and secondary school funding allocations and de-delegation for 2026/27.
3. That the Forum agree the level of Minimum Funding Guarantee (MFG) to be 0% and this to be applied to the Schools Block funding formula for 2026/27.
4. That the Forum agree that the headroom funding for 2026/27 be transferred to Centre Services Block and allocated at future date.

          Members of the School Forum will contact Officers regarding suggestions for the allocation of the headroom funding.

          Maintained School Forum representatives agreed to the contingency rate.