Agenda item

To consider a report from Lee House, Service Manager (Finance) – Children’s Services, Finance and Commercial, Corporate Development Directorate

For Information

To consider a report from Lee House, Service Manager (Finance) – Children’s Services, Finance and Commercial, Corporate Development Directorate and Vanessa Eddey, Team Manager – Schools, Finance & Support

For Information 

Key points of discussion

Forum received the Q1 outturn report for the Dedicated Schools Grant (DSG), covering the period to the end of July 2025. It was noted that this extended reporting period aligned with Dorset Council’s internal financial cycle and committee scheduling.

The report highlighted a projected overspend of £52.5 million against the DSG, compared to the original budgeted overspend of £51 million. The increase was attributed primarily to continued pressure on independent sector placements and growth in demand within learning centres and resource provision within the High Needs Block. It was noted that some anticipated financial changes from top-up funding reviews were not yet reflected in the forecast, as their impact would be felt later in the financial year.

Forum members were reminded that payments from the Department for Education under the Safety Valve programme remain paused. Officers reported that significant work had taken place over the summer to address this, including a visit from a SEND adviser in July and a formal submission to the DfE on 12 September. A full update on the Safety Valve position is expected at the November meeting.

A member queried whether the Safety Valve programme was effectively ending, given the lack of new authorities being admitted. Officers acknowledged this uncertainty and highlighted that wider system and funding reform is expected in the forthcoming SEND White Paper.

Forum was also informed of a positive development regarding the Central Schools Services Block (CSSB). Dorset Council successfully evidenced its continued liability for historic retirement costs, resulting in the reinstatement of £76,000 to the CSSB allocation for this financial year. Officers reflected that it is likely the same process will need to be repeated next year

A member requested that future reports include a simple breakdown of the DSG overspend, showing how the total is distributed across key areas such as independent placements and top-ups. Officers agreed to include this in the next report

Forum received an update on the financial position of maintained schools at the end of the 2024–25 financial year. At year-end, 40 schools reported a surplus, with a combined total of £8.8 million. Five schools were in deficit, with a combined shortfall of just over £800,000.

For the current financial year, schools have submitted budget plans showing 39 schools in surplus and six in deficit. Officers noted that surpluses often appear lower at budget-setting due to the inclusion of contingency items and may increase as the year progresses.

Officers confirmed that there would be a renewed focus on how schools are using surplus balances, particularly where these exceed 8% of their annual funding. Schools are required to report on their plans for using excess balances, and officers will be reviewing these over a three-year period.

In relation to the Early Years Block, the Forum was informed that the budget has increased significantly due to the expansion of government-funded entitlements. From September 2025, working families can claim up to 30 hours of funded childcare for children aged two and above, and from nine months of age. The budget now stands at £45 million and is expected to rise again next year.

Officers acknowledged the challenge of monitoring this rapidly expanding area but confirmed that the budget remains on track. Rates for providers are set annually and will be reviewed again ahead of the next financial year.

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2025/04