Lewisham Schools Forum Considers Transferring Funds to Support High Needs in 2026/27 Budget

Lewisham schools may see a shift in funding as the Schools Forum considers transferring funds from the Schools Block to support High Needs, which currently faces significant financial pressures. According to the minutes of the meeting from October 23rd, 2025, the High Needs Block (HNB) 2024/25 overspend was £3m, with a cumulative deficit of £18.6m projected. The potential move was discussed at the Lewisham Schools Forum meeting on Thursday, 11 December 2025, as part of a broader discussion on the 2026/27 Dedicated Schools Grant (DSG) mandate.

The forum is weighing options to address these financial pressures in the HNB, which funds provisions for students with special educational needs and disabilities (SEND). The maximum allowed transfer from the Schools Block to the High Needs Block is 0.5% according to the National Funding Formula. One proposal involves setting the Minimum Funding Guarantee (MFG) at a maximum of 0.0%, with any remaining funds directed to support the HNB. With a 0.0% MFG, any residue would support pressures in the High Needs Block. A second option suggests a 0.5% transfer from the Schools Block to the HNB, followed by setting the MFG based on affordability, with a minimum of minus 0.5%.

The Schools Forum is scheduled to receive multiple reports outlining different approaches to the Authority Proforma Tool (APT), including one with the National Funding Formula (NFF) applied at a maximum of 0.0%, with any remaining funds requested to support the High Needs Block up to the maximum allowed transfer of 0.5%.

The forum was asked to consider a potential transfer of 0.5% from the Schools Block to the High Needs for 2026/27. According to the Public Reports Pack, this funding currently supports the pilot SEN support to schools who have in excess of 5% SEN in their mainstream setting. It also continues to support wider mitigation and early intervention work related to learners with SEND, and helps with managing the high needs block overspend. A transfer of funds from the Schools Block to the High Needs Block would impact these programs.

The final decision on the 2026/27 DSG mandate, including the potential transfer of funds to support High Needs, is expected to be made at the Schools Forum meeting on 15 January 2026, following the receipt of the final settlement from the Department for Education (DfE).