20/11/25

26/2/26 

23/4/26 

18/6/26 

9.AOB Schools Block Transfer to High Needs Block

Background

During the meeting, the Principal Accountant (Rob Parr) mentioned that the Director of Finance  (Malcolm Coe) had raised the possibility of 0.5% virement of the Schools Block to the High Needs Block in future financial years, as a means of addressing the ongoing and cumulative deficit in the High Needs budget. This option is being considered by the Director of Finance in response to significant financial pressures, including increased demand for SEND provision and insufficient Dedicated Schools Grant (DSG) settlements.

Discussion

• The Forum was informed that, should the local authority wish to pursue a transfer of up to 0.5% from the Schools Block to the High Needs Block, this proposal must first be presented to the Schools Forum for approval.
• If the Schools Forum does not approve the virement, the local authority retains the right to submit a “disapplication request” to the Secretary of State for Education via the Department for Education (DfE). This process allows the DfE to adjudicate and potentially override the Forum’s decision, should the local authority demonstrate sufficient need and justification.
• It was clarified that, in order to ensure fairness across all schools, the local authority would also need to request disapplication of the .5 virement, the Minimum Funding Guarantee (MFG) and Minimum Per Pupil Funding Level (MPPL) so that the financial impact of the transfer is distributed equitably.
• For Torbay, a 0.5% transfer would equate to approximately £545,000 in additional funding for the High Needs Block, based on current figures. However, due to the prevalence of schools on minimum funding levels, less than half of Torbay schools would contribute under current arrangements unless disapplication is granted.

Decisions and Actions

• Decision: The Schools Forum agreed that the 0.5% transfer will not be pursued for the 2026–27 financial year. However, the option may be revisited for 2027–28, depending on future budgetary pressures and the outcome of national policy changes (including the anticipated White Paper).
• Action: The Forum requested that, should the proposal be brought forward in future, all possible options and cost implications be thoroughly explored and presented for consideration. The Forum also requested early notification and full transparency regarding any intention to submit a disapplication request to the DfE.
• Action: The Forum will monitor developments and ensure that any future decision regarding the Schools Block transfer is made in accordance with statutory guidance and following consultation with all affected stakeholders.

Reference to DfE

• The process for referring the matter to the DfE is as follows:
  1. The local authority proposes the transfer and seeks Schools Forum approval.
  2. If the Forum does not approve, the local authority may submit a formal disapplication request to the Secretary of State for Education.
  3. The DfE will review the request, consider the rationale and supporting evidence, and make a final determination.
  4. The outcome will be communicated to both the local authority and the Schools Forum, and implemented as directed.

Next Steps

• The Schools Forum will continue to monitor the financial position of both the Schools Block and High Needs Block and will revisit the transfer proposal as necessary in future meetings.
• Any future proposal to transfer funds will be subject to full consultation, impact assessment, and compliance with DfE procedures.

Next Meeting:
Date: 20 November 2025