Agenda item

Jenny Lawrence presented the paper with the intention of gaining the support from the LSF to approve the approach that the LA is taking.

·         Currently there is no clear picture on what the DfE are intending for 2026/27 school funding so the proviso within the report is that the funding will remain the same as 2025/26.

·         There may be an early indication from the spending review but no sufficient detail. We are looking to revisit the process that was followed for the 25/26 budget transfer calculation, going through formula factors to see if we can get a better spread of impact across all schools.

·         Many schools were affected, and a large number weren’t. Within the formula there are 2 prohibiting factors which we can’t do anything about. We still have a minimum funding guarantee in place and an increase in pupils funding packages for SEND remains significantly higher than changes in pupil numbers.

·         We know that the High Needs formula isn’t responsive to changes in demand, it’s constructed by the DfE and we have no way of changing the funding coming through. We are currently looking at scenarios and will report in Sept Leicestershire Schools Forum with what we think is the most efficient and equitable way of distributing the impact of the settlement.

·         A deeper level of analysis is raising some interesting questions that are being further investigated as we are currently data rich and conclusion poor.

Dr Jude Mellor questioned how the LA are spending the money and when will schools see action from how the money is being invested as there has been no evidence of impact on how we are spending the money already lost to the de-delegation system. Peter Leatherland agreed with Dr Mellor’s concern that we’re asking for more money to be taken out when schools haven’t yet seen where the existing money has gone. Jenny Lawrence reiterated that the LA haven’t taken money away from schools but limited the amount of money schools have to gain. Every school saw an increase in pupil funding for 25/26 even with the transfer. Jenny also made the point that there needs to be capping with the transfer because the DfE do not give enough money to deliver the school funding formula. The LA were clear throughout last year’s consultation that the investment fund would not become active until the start of the academic year.

Dr Mellor noted that looking at this going forwards, schools need to balance how students will manage without the resources and provisions such as TAs. They are looking to explore SEN provisions based in schools but having to do so with less resources. She also made the point that Leicestershire is appallingly funded at a regional level and wondered at what point is it going to be acknowledged nationally that the LA cannot do more unless Leicestershire is properly funded. Dr Mellor queried that whilst she is aware the LA are asking this question on behalf of our schools, how can this be more heard?.

Jane Moore acknowledged and agreed that the LA are coming back with a further request of transfer before they are able to evidence the impact of the previous transfer. Jane advised that the LA want to be up front and that it’s a matter of timing and having to go through certain processes. The schools block transfer made last year was about investing money back into the system and the LA have been working hard to get that right. The proposal to make another block transfer is because of the challenges within the High Needs block and Jane agreed the resource issue is a challenge for all schools. Jane further advised that conversations are happening at a national government level around how Leicestershire is funded. With the way the formula is set up, there is a significant disparity to some of our surrounding LAs and we’re advocating strongly that we need money into schools to support national SEND reform.

Jenny Lawrence commented that one of the questions that has arisen from the LA looking at the way we are modelling is about equity and funding across the system, so there is a focus on looking at answering this.

Martin Towers noted that there is no decision required on this agenda point.