Lewisham schools are facing funding uncertainty as national changes are implemented, according to discussions at the Lewisham Schools Forum meeting on Thursday, 11 December 2025. Beyond the mainstreaming of grants, other factors contributing to the overall funding changes for Lewisham schools include inflation and changes to the National Funding Formula (NFF) factors. The DfE has announced factor values that local authorities are expected to use in the NFF, and these values are subject to change year to year.

The forum convened to address the principles and approach for the 2026/27 schools funding submission to the Department for Education (DfE), focusing on the Authority Proforma Tool (APT). A key concern is the Dedicated Schools Grant (DSG) mandate and how the National Funding Formula (NFF) will be applied.

The Schools Forum is considering several options, including setting the Minimum Funding Guarantee (MFG) at a maximum of 0.0%, with any remaining funds directed to support pressures in the High Needs Block (HNB). Another option involves a 0.5% transfer from the Schools Block, followed by setting the MFG at an affordable level, potentially down to minus 0.5%. A hybrid model may also be necessary depending on the final financial settlement.

Using the APT tool, the local authority determines each school's budget share and associated Minimum Funding Guarantee (MFG). The MFG is based on overall affordability and is confirmed at 0% to minus 0.5% uplift per pupil (based on pupil-led characteristics e.g. Age Weighted Pupil Unit (AWPU), Free School Meals etc). Subject to affordability the council will aspire to achieve as close to 0.0% as possible.

The DfE has published provisional school block funding allocations for the 2026 to 2027 financial year. The report pack noted that much of the increase in funding is not new money, but rather the mainstreaming of grants, such as the Schools Budget Support Grant (SBSG).

Changes to the NFF factors are related to mainstream schools grants worth £1.24 billion, which will be allocated through the NFF by increasing per-pupil funding, funding for pupils eligible for free school meals (FSM6), lump sum funding, and minimum per-pupil funding.

The Schools Forum also discussed de-delegation, which allows local authorities to provide central services funded by diverting funds. It was proposed that de-delegation continues in line with current levels, with a 3.2% uplift where indicated. This supports areas such as the administration of Free School Meals, trade union and non-sickness supply schemes, school improvement, and schools contingency.

The central services currently funded through de-delegation are:

  • Administration of Free School Meals (£54k plus circa 3.2% = £56k)
  • Trade union and non-sickness supply scheme (Maternity Fund) (£1m)
  • School Improvement as agreed 2 year support (2025/26 was the second year of support). (£367k Uplift subject to confirmation).
  • Schools Contingency to support costs that should not be reasonably incurred by a governing body. (£445k Please note this includes the continuation of the Lewisham schools finance support at £157k – plus 3.2% = £162k).

The forum was asked to consider a potential transfer of 0.5% from the Schools Block to the High Needs Block for 2026/27. This funding would support the pilot SEN support to schools who have in excess of 5% SEN in their mainstream setting, wider mitigation and early intervention work related to learners with SEND, whilst also helping with managing the high needs block overspend. According to the minutes of the meeting from October 23, 2025, the High Needs Block 2024/25 overspent by £3m, leading to a cumulative deficit position of £18.6m going forward. The proposed funding changes, including the potential transfer, are intended to help manage this overspend.

Floyd Roberts, Senior Business Partner, noted in the 2026/27 Dedicated Schools Grant Mandate report that the final settlement is due just before the Christmas break, with a submission to the DfE due 22 January 2026. The Schools Forum is scheduled to meet again on 15 January 2026, to agree the APT tool for submission.