Lewisham schools are facing significant financial challenges, with 25 schools currently in deficit, totaling £11 million. The Lewisham Council Schools Forum met on 26 June 2025, to discuss the Dedicated Schools Grant (DSG) and school balances, among other issues.
The draft schools' balances position for 2024/25 shows a concerning reduction in overall balances, dropping from £13.0 million to £9.9 million, representing a net decrease of £3.1 million, according to the Public reports pack.
The Schools Forum also addressed the Dedicated Schools Grant (DSG) outturn position for 2024/25 and a funding update for 2025/26. The draft DSG position for 2024/25 revealed an overspend of £3.0 million, an improvement from an earlier projection of £6 million. However, the High Needs Block continues to face pressure, contributing to a cumulative DSG deficit of £18.5 million.
The forum discussed how to handle premature retirement and redundancy costs. The council's Funding Framework – Scheme for Financing Schools
states that early retirement costs should be charged to the school's delegated budget, unless the local authority agrees otherwise in exceptional circumstances. Redundancy costs may only be met from the school's budget share if the authority has good reason
to deduct those costs. Lewisham expects schools to manage their staffing and budgets responsibly, with redundancy as a last resort.
The Schools Forum also reviewed and approved the proposed schedule of future meeting dates and the work programme for the 2025/26 financial year, as outlined in the Schools Forum Work Plan for 2025/26.