Schools Finance Group: Notes of meeting held on 3 June 2026

Item 3. 0.5% block funding transfer – options

•  Working group to be convened to collaboratively develop a proposal for investment in schools which will demonstrate impact in every school. This would be for initial consideration at June DEF and further developed prior to the end of the summer term.

Item 5. High Needs Banding Review values

• Banded funding allocations will begin to be implemented shortly, with a SENCO Funding Referral Group convened to consider requests from schools where a school requests a review of the funding level allocated.
• The new approach includes a wider range of funding allocations which should more appropriately reflect the cost of provision to meet children’s needs detailed within their EHCP.

Item 6. ScoMIS – reduction of offer to schools

• The service offer to schools will be reduced to MIS and financial services support only with  Cloud based and technical support ceasing at the end of summer term.
• Communications around transition of Bromcom will be issued to schools w/b 8 June.
• All schools with ongoing queries are encouraged to contact ScoMIS directly.

Item 7. Growth Fund

• Growth fund guidance and rates will continue to be reviewed annually and adjusted as appropriate

Attendance

DCC

Simon Niles (Chair) – Head of Strategy & Central Operations (Inclusion & Learning), Adrian Fox – Head Accountant (Inclusion & Learning), Daniel Harris – Head of Financial Systems & Processes, Kellie Knott (part) – Deputy and SEND Strategic Director, Heidi Watson-Jones – Executive Assistant Inclusion & Learning

Devon Schools Leadership Services

Jamie Stone – Denbury Primary, Christopher Tribble – Honiton Primary, Paul Walker – First Federation Trust, Rob Gammon – The King’s School, Rachel Harper – South Molton Community College, Gareth Smith – Okehampton College

DAG

Alex Walmsley – Secondary Governors, Faith Butler – Special School Governors, Adrian Hines – Primary Governors

Special Schools

See below

Apologies

Simon Winward – Southbrook Special School, Sarah Pickering – Mill Water School, Gemma Rolstone – Puffins Childcare

1. Minutes of previous meeting – 4 March 2026

• Minutes were confirmed as an accurate record
• All actions complete or on today’s agenda for discussion

2. DSG Monitoring – 2025/26 Outturn

• DSG outturn position – overall DSG overspend of £59.7m, with in-year overspend of £15.6m.
• Noted the year end position has matched the month 7 level. This will be reviewed going forwards.
• Impact of the work of the High Needs Provision Panel in reducing growth in independent placements was noted.
• Statutory override remains in place until the end of 27/28. Up to £191.3m anticipated to come into the LA to offset the DSG Deficit through the high needs stability grant (90%), with an LA contribution (10%) of £26.9m.
• Further government support from 26/27 and 27/28  to be confirmed.
• SFG were reminded of the DfE expectation that any in-year savings are attributed to the bottom line deficit position.
• Surplus balances included growth fund, schools funding (DfE Contribution – Safety Valve) and other additional funds coming into DSG. School balances total approximately £12m (£9.8m for maintained schools; £2.1m for maintained special schools and hospital school)
• Noted the impact of rising costs around independent special schools, increasing independent placements due to insufficient maintained and academy special school places to meet demand, and ongoing increase in plus packages.
• Noted the increase in growth of EHCPs issued has reduced, and more children have been placed in mainstream provision in 25/26, however associated provision costs have increased. Ongoing growth in EHCP requests is expected to continue as set out in White Paper and DCC SEND Sufficiency Strategy.
• Considered the £26.9m which equates to the 10% balance of the current deficit position. There are concerns how the LA will manage the cash flat high needs allocations in the context of expected increasing in-year deficit positions. Noted that more funding supporting mainstream – mainstream inclusion fund and experts at hand
• Considered capital funding linked to the special school development in Cranbrook.
• Considered long term aspirations for reduction of funding into independent sector. Work strands being developed around SEND Transformation and national SEND reforms are anticipated to result in a shift in inclusive provision in mainstream.

3. 0.5% Block Funding transfer – options

• 0.5% transfer was approved by SoS, and LA considerations have evolved around how that funding can best be used.
• The context of the SEND Reform planning, across the local area, must take into account how the funding transfer will be used to drive and accelerate system change while schools are requesting a return of funding.
• Option to return funding to individual schools is not a viable option nor per the guidance from the DfE for 2026-27 on the closure of the safety valve programme and any way forward must align with SEND Reform.
• An option to strategically use SENCo expertise across the education system has been proposed.
• LA colleagues were thanked for preparing the options for SFG to consider.
• It was felt that a way forward can be identified where the funding can be reinvested in schools which is not a reimbursement.
• £2m could be identified as an investment resource which can be utilised in a codesigned way to make a difference, and assure schools that their expertise is being invested in. This could include supporting schools to develop an inclusive early help offer, preventing escalation of support and resource in statutory processes., with measurable outcomes.
• SFG requested an opportunity to codesign a collaborative way forward that will align with SEND Reform planning, and to provide system-wide opportunities that schools may not be able to secure individually.
• Considered that in the context of cash flat high needs resourcing, schools’ Inclusion Mainstream Funding will pragmatically need to be included in planning.
• Concerns were raised around the limited success of previous project investment for schools.
• Jamie Stone shared that investment in SENCo expertise will have positive impact in every school, and this proposal should be explored and developed further. Additional support would help SENCos meet children’s needs rather than putting them on a statutory pathway.
• Would need to collectively consider how the funding can be ringfenced and ‘owned’ by schools rather than being held and directed by the local authority. 
• Schools need to be involved at grass roots level to facilitate a responsive and inclusive provision. Directing funding to the deficit bottom line will not deliver impact for children and young people.
• Collaborative governance and ringfencing of funding will be key to success and rebuilding trust across the sector.
• Schools need to be encouraged to ‘step up’ and commit to engagement and not accidentally provide schools with funding that may be spent on other areas.
• Experts at Hand developments are exploring how change can be implemented across the sector. Definition and clarity around the use and remit of different resources (E@H, IMF, 0.5%) would be helpful.
• Demonstrating offer and impact across all schools is important, ensuring that none fall through the gap and all are supported by learning communities and networks.
• SFG felt that the impact on schools of contributing to the 0.5% transfer should also be taken into consideration in the context of what new offer they will be able to access for learners in their school.
• Narrative used for DEF needs to match with SEND Reform final plan submission and investment not ‘giving back’

ACTION

• KK To convene focused discussion to collaboratively develop a proposal for investment in schools which will demonstrate impact in every school. This would be for initial consideration at June DEF and further developed prior to the end of the summer term.
• Discussion to June DEF to shift focus from giving money back to schools, to a clear commitment to reinvesting in schools.
• DSLS (through Clare Coates) to agree participation in development discussions prior the end of term.

4. Corporate Review of external elements on high needs budget setting

• Noted that the high needs stability grant is expected to return up to 90% of deficit, but mindful that comprehensive planning is in place to provide a robust SEND Reform plan submission.
• Ongoing structural deficit remains off-balance sheet until March 2028.
• All schools will be required to publish an inclusion strategy by December. Inclusion Mainstream Funding will be received by the LA at the end of June and passported to maintained schools; academies will receive funds directly in July from the government.
• Considered the work of the Olive Academies which has included a workshop, and conversations with schools & settings to facilitate development of a strengthened inclusion and learning strategy. Mark Vickers will give a presentation to Children’s Scrutiny committee on 8 June. Confirmed that no savings have been built into the budget projections as a result of the Olive Academies work in Devon. Noted £8m notional capital work in mainstream schools will align with development of school environments to improve inclusive provision. Draft Sufficiency Implementation Plan 2026-2030 distributed

5. High Needs Banding Framework values

• Claire Merchant-Jones thanked school leader and SENCos for their involvement in the development of the high needs funding framework.
• In the context of the discussion around use of 0.5% funding transfer, it was felt that further investment in SENCo expertise would be valuable.
• 2026/27 banding funding will begin to be implemented shortly, as per timeframe shared at March SFG.
• SENCo Funding Referral Group involving 30 SENCos will oversee decision making through implementation of funding banding where a school requests a review of the funding level allocated.
• The new banding model has more funding points which should more accurately reflect the cost of provision to meet the needs of the child and will support a more consistent approach to allocating funding across all children.
• SFG noted that the current banding allocations have not been factored into the current year’s budget. As SEND Reform responses are developed this will be reflected more transparently.
• The group considered how the banding funding will help to address the increasing spend on plus packages; clear monitoring of plus package expenditure can continue to be discreet.
• SFG is expected to have a role in the monitoring of the impact of the implementation of the new funding model, and demonstrate benefits to schools.
• Following DEF, schools will be notified of the details around the banding framework.

6. ScoMIS – reduction of offer to schools

• Sally Heath provided an update on changes to the delivery of ScoMIS services. Changes have been driven by changes in the Education MIS market and financial pressures which has impacted on the traded arm of the organisation.
• Service offers, delivered over many years, will be reduced to MIS and financial services support only. Cloud based and technical support will cease at the end of summer term, with transition planning in place to support schools to explore new providers.
• Schools have received information and an action plan is in place to provide support for schools over the next few weeks through 1:1 contacts. These are to field initial queries. 
• SFG have concerns around the timing and speed of transition, and the impact on school budgets of any expected additional costs.
• Plans for future Bromcom hosting will be shared with schools in a communication w/b 8 June which will cover contract variations, costings and preparations that schools need to put in place ahead of planned 26 June transition. All schools will continue to have an individual contract with Bromcom, with account manager support and a ScoMIS account manager. Changes should largely be ‘background actions’
• Concerns have been raised around the loss of technical IT support, particularly where schools lack confidence in securing new suppliers – noted some multi academy trusts and IT providers have moved into the market space.
• All schools with ongoing queries are encouraged to contact ScoMIS directly.

7. Growth Fund

• Karen Worthington presented updated guidance around growth funding and falling rolls have been developed in line with latest 2026/27 DfE guidance
• These particularly refer to the  requirements to prevent duplicate funding arrangements. Funding rates have also been uplifted to reflect index increases and current cost levels.
• Bulge classes and ghost funding for additional pupils have been discussed previously at SFG.
• KW confirmed the uplifted rates will be manageable within the growth fund budget. Growth Fund is allocated nationally to the DSG, based on current areas of growth.
• Pockets of growth due to new development is likely to put more pressure on the growth fund, however there are issues around an increase in surplus places elsewhere, reflecting the falling demographic.
• Confirmation still awaited nationally.

Decision

• SFG agreed that growth fund guidance and rates will continue to be reviewed annually and adjusted as appropriate

Any Other Business

• Communications to schools re. ScoMIS SFG requested that Headteacher update reflect timeframe for communications ScoMIS service changes and contacting ScoMIS directly if there are any specific questions.
• SSP assurance and governance review – Jim Barnicott will be taking this forward with finance, considering management actions and audit recommendations. Update requested at 15 July funding consultation working group.
• DEF proportionality – Awaiting academy data to be provided by DfE to information DSLS elections for representation at DEF and standing groups. This should be available by end of June.
• SN thanked all colleagues for their ongoing commitment to SFG especially for those for which this was their last meeting. SN reiterated that any feedback on the effectiveness of the meeting would always be welcomed

Future meeting dates

• Wed 15 July 2026 – Consultation Working Group (09.30 – 12.30 – County Hall)
• Wednesday 9 September 2026  (09.15 – 12.30 – Teams followed by Consultation Working Group)
• Wednesday 4 November 2026  (09.15 – 12.30 – Face to face at County Hall)
• Friday 9 January 2027  (09.15 – 12.30 – Teams)
• Wednesday 3 March 2027  (09.15 – 12.30 – Teams)