Ealing schools with excessive surplus balances will face a clawback of funds to support high needs pressures and potential school organisation changes, following a decision by the Ealing Schools Forum. The forum agreed to implement a mechanism outlined in the Ealing Scheme for Financing Schools at its meeting on Wednesday, 2 July 2025.
The decision comes as the council grapples with a Dedicated Schools Grant (DSG) overspend of £3.787 million in 2024-25, with the high needs deficit increasing by £5.528 million to £7.755 million. The clawback mechanism aims to redistribute funds from schools with significant uncommitted balances to support improved provision across the local area.
According to the School Forum Report July 2025, maintained school balances totalled £13.09 million as of 31 March 2025, a decrease of £1.25 million from the previous year. While 62 schools (83%) had a surplus, 13 schools (17%) were in deficit, with deficits ranging from £50,000 to £1.14 million. The Outturn Balances for Ealing Schools showed that 25 schools had excess balances above the reasonable level of 8% of budget for nursery, primary and special schools and 5% of budget for high schools. The excess amount above those thresholds represented £4.53m.
The clawback will apply to schools with increasing excessive balances over a three-year period (two consecutive years, 2022-23 to 2024-25), potentially resulting in a £20,000 clawback. The forum agreed to option 1, allowing the clawback fund to be used to support high needs pressures and potential school organisation changes.
The Ealing Scheme for Financing Schools states that reasonable levels of balances are considered to be up to 8% of budget for nursery, primary and special schools and 5% of budget for High Schools.
