Agenda item

Outturn position for 2025-26

Individual Schools Budget Outturn Position 2025-26

To consider a report from:

Lee House, Acting Head of Finance, Business Partnering

Vanessa Eddey, Team Manager, Schools, Finance and Support

The Forum received an update on the DSG final position for 2025-26. This continues to highlight the financial pressures facing the education system, particularly around special educational needs and disability. The overall DSG allocation was around £369 million of which there was an overspend of £54.5 million, exclusively within the high needs block. One of the reasons for that overspend, which has been well documented, is the continued rise in children and young people who require an education, health and care plan (EHCP). 

Forum members observed that overall individual school balances have increased and the number of schools in deficit has gone up by one, but the amount of deficit has come down. Officers continue to work with schools with an excess surplus this year, collecting information on what plans are, with the principle of money today is for children in school today.  

Forum members queried point 26, alternative provision spend and building capacity in learning centres to limit the AP spend. Officers explained a previous slide was shared showing the different pathways that we've developed with the Learning Centres and the 4th, Connect pathway is primarily designed for children that have been out of school for a long time. Officers will continue to work with Learning Centres on this. 

Forum members queried the growing reserve balances for both Permanent Exclusions and Pupil Growth. Officers advised that the Pupil Growth balance includes the falling rolls fund and there will be a paper at the September forum meeting regarding this.  

Action 2025/11 Lee House:  Provide further detail in respect of variances in the DSG budget in the next monitoring report.