The Kensington and Chelsea Schools Forum met on Monday to discuss options for the local funding formula that will be used to calculate individual school budgets in 2026/27 as the borough moves closer to the national funding formula (NFF).

The publication of the notional schools and high needs national funding formula (NFF) allocations for 2026/27 has been delayed due to the timing of the Autumn Statement.

The forum considered three options for moving towards the NFF:

  • Move a further 10% towards the NFF factor values for all factors.
  • Move a further 15% towards the NFF factor values for all factors.
  • Move a further 20% towards the NFF factor values for all factors.

The specific factors being adjusted within the NFF include Primary Years Key Stage 2 and 3, Secondary Key Stage 4, FSM Units, IDACI Units Band A-F, EAL3 Units, LAC X Units, Low Attainment Primary and Secondary, Mobility, Lump Sums, Split Sites and NNDR.

According to the Public Reports Pack, local authorities must continue to move their local formula factor values at least a further 10% closer to the corresponding NFF values. Local Minimum Funding Guarantee (MFG) protections are expected to remain in place for 2026/27, which in 2025/26 was required to be between plus 0% and minus 0.5% per pupil compared to per pupil funding in 2024/25.

The Minimum Funding Guarantee (MFG) is designed to protect schools from significant budget cuts as the borough moves towards the NFF.

Officers recommended that the forum consider option 1, moving a further 10% towards the NFF factor values for all factors. The principles used to recommend option 1 include moving further towards the NFF factor values at the level required by the DfE, ensuring consistency and fairness where pupils with the same characteristics are funded the same amount of money, and aiming not to increase the MFG significantly. Officers view option 1 as the most suitable option, meeting all the principles with a lower total MFG than the other options, as there is no imperative to move at pace towards the NFF factor values.

The 2026/27 DSG Position and Local Funding Formula Review includes School Formula Options 2627 Compared to 2526, which shows the estimated impact of each option on individual school budgets. It states: Appendix A shows the 3 options separately with allocations for each school, with comparisons to the 2025/26 final budgets. The allocations shown are after the application of the MFG. The per pupil values include the amounts for lump sums and premises factors (Business Rates and Split sites) and are consistent with previous Schools Forum analysis.

The Schools Forum on 16th June 2025 agreed the proposed process, timetable and principles for agreeing the school funding formula for 2026/27 and three options for the funding formula were agreed for consultation with all schools. Primary schools were consulted at their meeting on 10th September 2025, and secondary headteachers were consulted on the models at their meeting on 17th September 2025. It was agreed that the decision regarding these options would be taken at the November 2025 Schools' Forum meeting.

The DfE published their response to their second stage consultation on implementing the direct Schools National Funding Formula (NFF) consultation, in April 2023. There is no deadline for the complete move to the NFF.