I am pleased to be able to introduce the Schools Budget for 2026-27. The Schools Budget is using the National Funding Formula (NFF) which has now been the case in Staffordshire since 2018.
The Schools Block dedicated schools grant (DSG) allocation (excluding growth funding) has increased by 2.2% from 2025-26. The Government has increased the core NFF factors by 2.11%. The funding protections have also been increased, with the minimum per pupil funding level rising to £5,115 for a primary pupil, £6,388 for a Key Stage 3 pupil and £7,018 for a KS4 pupil. The 2026/2027 Minimum Funding Guarantee (MFG) is set at the maximum permissible of 0% with any gains being capped at 2.78%.
The additional funding is welcomed, but we will continue to push for fair funding for education in Staffordshire to give our schools, teachers and children the resources they need. Staffordshire has continued to support the work of F40 as well as raising the local challenges with Staffordshire MPs as well as working in other networks to secure a fairer distribution of education funding for the future.
As reported regularly to Schools Forum, Staffordshire continues to face pressures in the High Needs Block (HNB). These have mainly arisen from an increase in both numbers and complexity and, therefore, costs relating to high needs top-up funding to pupils in both mainstream and special schools, as well as the independent sector.
Like the majority of local authorities across the country, Staffordshire is increasingly concerned about the deepening SEND challenges, with the current need and expectation outstripping the available capacity and funding. With your support we are taking steps to develop a more inclusive system through our enhanced assess, plan, do, review (EAPDR),Staffordshire enhanced district inclusion support (SEDIS) models and Enhanced Resource Bases (ERBs) to support children and young people needs earlier. Over time, this should reduce the spend in specialist provision and increase the number of children with an EHCP in mainstream schools. We know it will take some years for our strategy to be implemented in full, by which time the challenges we face will have deepened even further. We are awaiting the much needed education white paper which we anticipate will bring about the much needed changes to the SEND system.
In 2026/27 Staffordshire’s HNB allocation is £156m an increase of £12.3m (c8%) from 2025/26. The increase in the HNB is less than expected, it remains insufficient and does not reflect the increasing pressures within the sector. To help support the budget pressure and as part of the DSG Deficit Management Plan (DMP), a request was made to transfer 0.5% from the Schools Block - equivalent to £3.6m. This was refused by Schools Forum, however the subsequent disapplication request to the Secretary of State for Education was approved. As a result, the total 2026-27 High Needs Budget is £159.6m and as set out within the DMP, this funding will be used to support our SEND Strategy and SEND and Alternative Provision Improvement Plan.
In February 2026 the government announced plans to provide councils with a SEND deficit a “high needs stability grant” in the autumn of 2026, subject to securing approval of a local SEND reform plan. Through our SEND and Inclusion partnership we are developing our approach to delivering the SEND reform plan, so that we can access the grant to cover 90 percent of our DSG deficit which will be circa £100m by the end of 2025/2026. Despite this, Staffordshire will continue to implement the Deficit Management Plan to address and mitigate the existing shortfall as far as possible. This has been shared with and supported by Schools Forum.
The pressures on school budgets should prompt those schools with reserves to plan robustly for their use. For now, our approach continues to be to provide schools with financial flexibility to manage uncertainty and to exercise maximum local control over use of their resources. Where schools are facing challenges to set a balanced budget, you should engage with Entrust Schools Finance Service who will provide support with budget setting and managing any potential deficit. Staffordshire has a duty to protect all schools’ budgets and will continue to use a Notice of Concern, Licensed Deficit agreement or warning notice where necessary as set out in the Staffordshire Scheme for Financing Schools.
I firmly believe that school leaders are best placed to manage their resources well and to meet the challenges ahead over the next financial year and medium term. I have every confidence that, despite the pressures, Staffordshire schools will continue to demonstrate excellent financial management and use every pound under their control effectively and for the benefit of children and young people’s learning.
Finally, I would like, once again, to thank your representatives on the Schools Forum for their contribution to the development of this budget.
Bernie Brown
Director for Children and Families
General information
These documents have been prepared to support the 2026-27 schools' budget information. Please look through these documents carefully, they should answer many of the questions you may have.