DSG 2025 Frequently Asked Questions (FAQs)

1. What is the strategic intent of the proposed approach to distribution of the reversal of the block transfer and the distribution of the associated Notional SEN allocation increase?

The LA's modelling has been to mirror where the NFF (National Funding Formula) with its protections (either national or agreed locally previously) would put the cash - this is based upon previous views taken by Schools Forum to move closer to the NFF when the opportunity has been available and presumes that the NFF is a fair method of distribution (bearing in mind that there is not an alternative model available to LAs).
This has the effect of minimising the cost of protections in the local formula, thus allowing the values for each factor in the formula to be as close to NFF as possible.
This modelling also mirrors the approach taken with the formulaic Element 3 funding distributed from Sept 2025 and the start of the academic year, which was intended to model how funds could be distributed if the block transfer arrangements were 'unwound'.
The modelling of Notional SEN allocations is based upon the principles of Norfolk's existing Notional SEN formula methodology, which was updated for 2025-26.
The rationale for increasing Notional SEN allocations in line with the block transfer reversal is to seek to ensure that the 'unwinding' of the block transfer does not result in less funding in Norfolk being spend on SEND provision overall in mainstream schools (i.e. when combining spend through the Schools Block and High Needs Block).
The difficulty with this approach is that some schools (i.e. those who are in receipt of significant Minimum Funding Guarantee and or Minimum Per Pupil Level protection currently) will not receive additional cash due based upon the illustrative modelling.
- This is because the level of protection they would receive reduces but is not erased as the funding allocated by factors and values increases.
- However, they would see an increase to their notional SEN allocations as the funding calculation as the methodology is based upon the school's funding allocated by the factors and values (ignoring protections).
- This would mean that they would be expected to adjust their schools' provision to account for an increased proportion spent on SEND.
Schools who were previously seeing gains due under NFF factors and values limited due to the block transfer and protections, would see additional cash allocated that exceeds Notional SEN expectations.

2. How would funds be distributed if the alternative option considered for distribution of the block transfer reversal was implemented that would more closely align with Notional SEN allocations?

A request of Schools Forum was to attempt to align additional Notional SEN allocations related to the reversal of the block transfer with the additional cash funding that would be distributed by the funds remaining in the Schools Block if the block transfer was no longer in place.
The LA attempted to model this, but it is not possible if the additional funding in the Schools Block is distributed via the existing local formula (based upon the National Funding Formula (NFF) factors and values along with protections (Minimum Funding Guarantee (MFG) and Minimum Per Pupil levels (MPPL)). This is because the Notional SEN allocation methodology does not have the MFG and MPPL protections calculations as part of it (although the factors and values used in the formula are a subset of the NFF).
While the LA have been unable to identify modelling of additional Notional SEN allocations that would match the additional cash allocations by school from the block transfer 'unwind' by school, it is possible to get close to distributing the additional cash from the reversal of the block transfer in line with additional Notional SEN allocations.
This would be through a technical adjustment to the Minium Funding Guarantee protection calculation; the Notional SEN allocation amounts by school would be added to the MFG baseline. This would result in much higher levels of protection in the Norfolk system than via the proposed methodology and would mean that different schools would benefit from the additional cash as a result of the reversal of the block transfer.
The LA have prepared an alternative technical paper that illustrates this effect (Excel doc, 137 KB) - the additional columns are highlighted yellow and illustrate the distribution if the alternative methodology was adopted.
The LA did not view this to be the preferred option due to previous views shared by Schools Forum to move closer to the NFF and the effective 'double funding' of schools that are already in receipt of significant protections, as well as it aligning with the decision taken regarding the distribution of formulaic element 3.