Decision details

RESOLVED:

That the Cabinet:

1)    Approve the Dedicated Schools Grant budgets for 2026/27 as set out in paragraph 1.2, Table 2 below. 

2)    Approve the Primary and Secondary schools block funding formula for 2026/27 as set out in paragraph 2.2 below.

3)    Note the Early Years Funding Formula allocation, for which a consultation with Early Years providers is currently underway as set out Section 3 below.

4)    Note the High Needs Block budget for 2026/27, which includes the 0.5% Schools Block Transfer approved through the disapplication process by the Secretary of State on 6 February 2026.

5)    Should any further Council approval regarding the Schools Budget 2026/27 be required, agree to delegate authority for this to the Cabinet Member for Finance & Transformation and Cabinet Member for Children, Families & Education and in consultation with the Corporate Director of Finance, to determine under urgency provisions.

6)    Request the waiver of the scrutiny call-in period, in accordance with constitutional obligations, so that schools can be formally notified of their approved individual budgets by the 28 February 2026.

Reasons for decision

The Cabinet Member for Children, Families and Education introduced the 2026/27 schools budget, seeking Cabinet approval for block funding allocations for schools and early years provision following consultation with the Hillingdon Schools Forum. The Dedicated Schools Grant (DSG) for 2026/27 totalled £445 million, an increase of 5.2% from the previous year. Much of this uplift reflected the rolling in of the National Insurance Contributions Grant and the full year effect of the Schools Budget Support Grant, with the real terms increase estimated at around 0.1%.

The Cabinet Member explained that the local schools funding formula continued to move closer to the National Funding Formula. The Schools Forum had been consulted on a proposed 1% transfer from the Schools Block to the High Needs Block and on the Education Statutory Duties delegation request but did not support either proposal. A related disapplication request had been submitted to the Department for Education, and the Secretary of State confirmed approval for only a 0.5% transfer; a final decision on the statutory duties request was awaited. This outcome would affect the final allocations.

It was advised that the reduced transfer placed significant pressure on education budgets, particularly the High Needs Block. The Schools Forum had been informed that the Council would need to pause non statutory funding for the year, as it could not be sustained without the full 1% transfer - an outcome described as disappointing, especially for highly-inclusive maintained schools.

The Cabinet Member noted substantial growth in the Early Years Block due to the expanded Government entitlement for children aged nine months and over. Furthermore, consultation on SEND funding reforms was ongoing, including proposals to increase the supplement for disadvantaged two-year-olds, reduce supplements for three and four-year-olds, redirect funding to SEND inclusion, and move towards a real time SEND funding model. Final decisions would be taken under delegated authority after consultation.

The Leader of the Council welcomed the Government’s decision to address the DSG deficit and praised officers for their work in bringing the position back into improved balance, noting that Hillingdon compared favourably to many authorities still experiencing worsening DSG deficits.

In considering all factors, Cabinet agreed the Schools Budget and given the urgency of ensuring school budgets were notified to schools by 28 February, requested the waiver of the scrutiny call-in period.

Alternative options considered and rejected

Cabinet could have decided to recommend that the Schools Forum reconsider the proposed funding for schools.