To approve School Forum’s recommended budget proposals for school budgets, central school services and early years within the Dedicated Schools Grant (DSG) for 2026/27.

The Head of Strategic Finance presented an overview of the 2026/27 Schools Budget, based on funding allocations received in December. The total Dedicated Schools Grant allocation is £196.2m, with the report covering the Schools Block, Central School Services Block (CSSB), and Early Years Block, while the High Needs Block will be considered separately in March.

For the Schools Block, funding increases to just under £144m, representing a like?for?like increase of 2.47% despite a reduction of 274 pupils. Two grants have been baselined into the national funding formula, and the Minimum Funding Guarantee is set at 0%. To balance the funding formula, the basic entitlement factor has been marginally reduced by 0.6%, remaining the fairest approach and still delivering overall growth of around 3% to schools. The Authority Proforma Tool submission is being finalised, with school budget shares to be confirmed by 28 February.

Within the CSSB, £963,000 is allocated to ongoing commitments, with budgets adjusted for inflation and updated pupil numbers. Provision has been made for DfE licence costs based on actual expenditure plus inflation, and members were advised that a comprehensive review of CSSB and delegated services will be brought to Schools Forum in June to inform 27/28 budget arrangements.

The Early Years Block allocation increases to £27.48m, an increase of £3.4m, reflecting the expanded childcare entitlements, including funding for children from nine months and increased take?up of two?year?old and extended entitlements. Key changes include a higher minimum pass?through rate to providers (97%), termly funding for three? and four?year?olds, increased hourly rates, and a one?off contingency fund to manage fluctuations during the transition. A retained element of 2.7% of funds is allocated to central early years support services.

Members of the forum thanked officers and the finance team for meeting challenging deadlines over the Christmas period and noted the fairness and child?focused approach taken in developing the budget proposals.

Questions were raised about whether increased Early Years funding would be sufficient to meet demand and about the impact of falling pupil numbers on staffing, particularly in small rural schools.

Officers confirmed that early year’s sufficiency work indicates there are enough places to meet current demand and that pupil numbers are expected to rise gradually after reaching a low point. While school capacities have reduced slightly, officers are not currently concerned about sustainability. It was noted that potential support for rural schools, including through contingencies and delegated services, will be considered as part of a planned review in June, and that further detail on Early Years spending and DSG outturn will be provided later in the year. Officers also confirmed that in?year pupil growth is being closely monitored, with sufficient capacity in primary schools and mitigation plans in place for tighter areas in the secondary estate, including SEND provision.

The Chair moved to recommend that the Herefordshire’s school funding proposals for 2026/27 adopt the National Funding Formula (NFF) values and be recommended to the Cabinet Member for Children and Young People as set out in the report.

The recommendation was carried 15 votes for, with 1 abstention