Dedicated Schools Grant consultation: Mainstream schools document 2025
DSG introduction
The Dedicated Schools Grant (DSG) is a ring-fenced grant provided by the government for the financing of schools' budgets, the provision of high needs and early years services, and the central provision of local authority (LA) responsibilities for all schools.
The DSG is constituted of four blocks that combine to form the overall ring-fenced grant: Schools Block, High Needs Block, Central School Services Block and the Early Years Block, together totalling £941.662m[1] in the 2025-26 financial year. Each block is distributed to local authorities based upon a national funding formula per block, including a National Funding Formula (NFF) for mainstream schools and an Early Years National Funding Formula (EYNFF) that each consider various factors including pupil numbers and characteristics.
Allocations of DSG made by the Department for Education (DfE) to local authorities based on the NFF and EYNFF are updated annually to reflect any increases in funding made available by the Government, as well as any new conditions or rules for allocations to schools at local authority level. So far, the DfE have not provided an indication of the level of DSG funding for 2026-27 but have published a summary policy document[2], which sets out limited information to allow some planning, including the DfE's intention to use the same National Funding Formula factors as in 2025-26, and to roll the Schools Budget Support Grant and National Insurance Grant into the NFF for 2026-27,
Each local authority is responsible for ensuring that DSG funds are used appropriately, including the distribution of the Schools Block and Early Years blocks of the DSG to schools and early years providers within the allowable rules set out in DSG guidance and conditions issued by the DfE. Each local authority is required, under regulations[3], to set up and maintain a Schools Forum which must be consulted on certain funding issues including any proposed changes to the funding formulae for schools and early years providers. In addition, local authorities are also required to consult with schools and early years providers for any changes to the funding formulae.
The Local Authority (LA), Norfolk County Council, will review the outcome of the consultation responses and prepare relevant inputs for Schools Forum Members ahead of their November meeting, where views, recommendations and decisions will be sought, as appropriate, for the individual elements.
Ultimately, the LA is the decision-maker for the final local funding formulae (though Schools Forum Members do have some related decision-making powers, e.g. for the de-delegation of services)[4]. The feedback received from schools and early years providers through the consultation informs the views and recommendations from Schools Forum Members, and so are an important part of the decision-making process.
The results of the consultation will also inform further work on High Needs funding arrangements for medical needs alternative provision.
The timing of the consultation during October, and the subsequent November Schools Forum meeting, allows for any disapplication of regulations requested (in certain circumstances) to be submitted to the Secretary of State within the usual timescales expected, and for budgeting deadlines to be met including the submission of the DfE's Authority Proforma Tool in January.
Final recommendations for the local funding formula for 2026-27 will be presented to Norfolk County Council's Cabinet in January for their recommendation, with the Full Council due to agree the final budget in February 2026.
This timeline means that schools, early years providers and settings will be informed of their final budgets by 28 February 2026.
If you would like to know more about the Dedicated Schools Grant and how schools funding and / or early years funding works, then please visit The Dedicated Schools Grant on the Schools and Learning Providers website.
[1] Source: Dedicated Schools Grant 2025-26, Norfolk
[2] Schools national funding formula (NFF) summary policy document for 2026 to 2027 - GOV.UK
[3] The Schools Forums (England) Regulations 2012 (legislation.gov.uk)
