Agenda item

The Cabinet considered a report of the Director of Children and Family Services which presented the outcome of the consultation process with schools on a proposed funding transfer from the Schools Block to the High Needs Block of the Dedicated Schools Grant for 2026/27, along with feedback from the Schools Forum.  A copy of the report marked ‘Agenda Item 5’ is filed with these minutes.

There were two options for funding a sustainable outreach and graduated support offer to mainstream schools, continuing with the transfer from the Schools Block to the High Needs Block or implementing a range of other measures to continue to fund the outreach support.

Mr. Pugsley CC reiterated that the number of children and young people with SEND in the county was growing at a faster rate than the funding available and he felt that there was a need for an ongoing outreach and graduated support offer for pupils in mainstream schools.  Members of the Cabinet agreed that pursuing another Schools Block transfer was not the solution to the funding issues and were supportive of option 2, which was to support the funding of outreach and support from Oakfield School through a per-pupil contribution model.

Mr. Harrison CC commented that the Dedicated Schools Grant deficit was a significant financial concern to the Council and measures to support more children with SEND remaining in mainstream schools were essential.  The model from Oakfield School would provide children and young people with the support they needed, reducing the need for specialist school places and growth on the High Needs Block budgets.

RESOLVED:

a)    That the responses to the consultation on a 0.5% transfer from the Schools Block to the High Needs Block of the Dedicated Schools Grant for the 2026/27 financial year be noted;

b)    That in considering the two options set out in paragraphs 48-64 of the report for funding a sustainable outreach and graduated support offer to mainstream schools through Oakfield School, the decision of the Schools Forum to not support either Option 1 (a 0.5% transfer from the Schools Block to the High Needs Block) or Option 2 (a per-pupil contribution from schools to support pupil outreach support and a commitment from schools to supporting ongoing mainstream inclusion) but proposed further consultation with schools on Option 2, be noted;

c)    That the preferred option 2 for implementation be agreed, noting that if it agrees to progress with a Schools Block Transfer, the Director of Children and Family Services will be authorised to seek permission from the Secretary of State to approve a 0.5% transfer.

(KEY DECISION)

REASONS FOR DECISION:

Demand for support for children and young people with SEND in Leicestershire is growing at a significantly faster rate than was anticipated in the current Medium Term Financial Strategy, leading to an increasingly unsustainable financial position for the Council and education system in the county.  These pressures are also reflected nationally.  There is a need for ongoing support for inclusion and belonging of children and young people with SEND in mainstream schools, and a clear need for outreach and graduated support for pupils with additional needs following the ending of existing offers funded through the SEN Investment Fund for 2025/26.  Mainstream inclusion is anticipated to be a key expectation from the upcoming Schools White Paper.

Local authorities are able to transfer 0.5% of funding from the Schools Block to the High Needs Block of the DSG following consultation with schools and the approval of the Schools Forum.  If the Schools Forum does not approve, or if a transfer in excess of 0.5% is being sought, local authorities can seek formal permission from the Secretary of State to disapply sections of the School and Early Years Finance England Regulations which govern the use of DSG.

This report notes the views of consultees, feedback from the Schools Forum and seeks a decision from the Cabinet on the preferred approach for funding a sustainable outreach and graduated support offer for children and young people with SEND in mainstream schools.

Should a School Block Transfer of 0.5% be the preferred option, the Cabinet’s approval is necessary in order for the Director of Children and Family Services to approach the Secretary of State for permission to undertake the transfer which would be used to continue the SEN Investment Fund.