Agenda item

Report of the Director of Education Commissioning and Inclusion.

This report updates the Schools Forum on the estimated funding available for 2025/26 following the recent Education and Skills Funding Agency (ESFA) Dedicated Schools Grant (DSG) finance settlement notification on 18^th December 2024 and details the anticipated use of this money to fund schools early years and high needs. It then outlines future funding pressures the current DSG reserves position, de-delegation and the latest ESFA support.

Consideration was given to the report of the Director of Education Commissioning and Inclusion.

Victor Saunders (Team Leader Schools and Designated Schools Grant) introduced the report which updated on the estimated funding available for 2025/26 following the recent Education and Skills Funding Agency (ESFA) Dedicated Schools Grant (DSG) finance settlement and detailed the anticipated use of this money to fund schools Early Years and high needs. The report also outlined the future funding pressures, the current DSG reserves position, de-delegation, and the latest ESFA support.

The Chair thanked officers for the report and invited questions and comments from the Forum. The following was discussed:

A member highlighted the financial strain on schools due to falling rolls, noting that fixed costs remained unchanged unless class numbers and staffing were reduced. Many schools were operating below their Published Admission Number (PAN), with most admissions coming from first-choice applicants, making financial planning challenging. Members stressed that schools were increasingly struggling, and despite numerous meetings, in their view there was no clear plan to manage the issue. A proactive approach was needed to address the situation before significant damage occurred. Officers acknowledged the difficult financial position reflected in the data and noted that a range of initiatives, including reducing PANs, had been implemented over the past 12 months to mitigate risks. While the situation could have been worse in the context of previous decisions, such as school closures, there was no sign of an upward trend, making it necessary to explore further options and address ongoing risks. It was confirmed that out-of-borough preference data for 2025 had not yet been received, but it was unlikely to change the overall position. A longer-term view was needed, given the structural difficulties schools faced. Schools had requested an implementation plan based on the principles of school place planning, with a clear short and medium-term strategy. Work was underway to develop this, with the aim of presenting it to the School Place Planning Group on 25 February 2025.

Members expressed frustration at repeatedly receiving similar responses from officers, who stated they were working on the issue. They questioned when it would be concluded and noted the year-on-year decrease in the number of children. One member highlighted that reducing the PAN did not address the current fixed costs and stressed the need for well-developed proposals to present to councillors. Concerns were raised about the situation worsening, with neighbouring boroughs cited as examples of potential outcomes. Officers responded that they were actively working on the strategy, having spoken to numerous colleagues and bringing in additional resources, including Housing colleagues. They described the issue as complex, involving housing and assets, and stressed the need to consider the utilisation of property assets to avoid losing them. They assured that substantial work was taking place and that there would be a detailed update on school place planning. They also mentioned recruiting a officer to drive this work and engaging corporate colleagues to highlight the scale of the challenge.

Officers stated that if members would like to discuss their individual school figures, they should contact them outside of the meeting.

Members asked about place planning, expressing concern about recruitment struggles at some schools and certain schools exceeding their PAN. They hoped this would be monitored, as they did not want some schools to grow while others reduced in size. Officers responded that parental preferences often led to vacant spaces not balancing out across the system, regardless of the quality of education offered. This was more of an issue in secondary schools than in primary schools. Officers noted that when schools were full, they often over-recruited, though this had not been the case recently. For schools with their own admission authority, and if over-recruitment was detrimental to Camden schools, the Council’s view was that it should not be approved. Members emphasised that these policies should be clearly communicated to schools, which officers acknowledged.

RESOLVED –

THAT Schools Forum

a)    Note and agree the latest estimates of individual schools and growth budgets (section 3.7) and Appendix 1 and 2. 

b)    Note and agree (as per the Early Years Report) the provisional Early Years funding rates (section 3.10).

c)    Provide any further comment regarding the 2025/26 funding (section 2.13).

d)    Identify any areas of funding for review in autumn 2025 ahead of the funding year 2026/27.