Council set to approve use of £772 million education grant

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Gloucestershire County Council’s Cabinet is set to approve the use of the £772.21 million Dedicated Schools Grant which will support education across the county in 2026/27.

The annual grant, which is provided by the Government Department for Education to fund all education services from birth to 18, has increased by £27.75 million from last year’s total. 

Despite the increased grant, the money provided to fund our primary and secondary schools will not be enough to deliver the Government’s National Funding Formula in full. The National Funding Formula is a calculation by the Government which prescribes how much funding primary and secondary schools should receive based on the context and cohort. 

As a result of Government funding not being enough to cover the National Funding Formula, the Schools Forum has agreed an approach for the upcoming financial year. This includes a small reduction to each National Funding Formula factor, except for the minimum per pupil level.  

This means that primary and secondary schools will see a small reduction in funding, and the council will work closely with school leaders to ensure every pupil receives a high standard of education and the support they need. 

Special Needs education in Gloucestershire continues to face significant pressures as demand for Education, Health and Care Plans (EHCPs) rises both locally and nationally. 

The county council is proposing a set of measures designed to protect support for children and avoid further strain on schools, including: 

  • A 3% inflationary increase in EHCP top-up funding. 
  • Continuing targeted SEND funding for mainstream schools with proportionately high numbers of pupils with SEND. 

These proposals aim to maintain essential support for children and young people with SEND ahead of national reforms which are expected to be announced by the government. 

Early Years funding from the Government has increased by £19.3 million, reflecting the national expansion of childcare entitlements for parents and increased hourly rates set by the Department for Education. The council will be consulting with the early years sector on how the funding is allocated. 

Council’s cabinet will discuss these proposals at its meeting on January 28. 

Cllr Linda Cohen, Cabinet member responsible for Education and skills at Gloucestershire County Council, said: “This year the funding we’ve received from the Department for Education isn’t enough to deliver the National Funding Formula in full, so the Schools Forum has agreed an approach that results in a small reduction for schools.  

“With demand for Education, Health and Care Plans continuing to rise, we’re also proposing measures to protect support for children and young people with SEND and avoid placing further strain on schools.  

“By safeguarding funding wherever possible, we’re helping ensure children receive the support they need while much needed national reforms are developed, and we will continue working closely with school leaders to maintain high quality education for every pupil.” 

To read the Cabinet paper in full, click here.