Element 3 funding

SEND budget changes and guidance for 2026/27

Following the publication of the updated Element 3 Funding guidance for 2026/27 arrangements in February, some Schools Forum representatives raised a concern regarding the timeline for implementation of changes in relation to the contributions from settings to their Graduated Provision Maps based upon Notional SEN. Advice was sought from the DfE and Schools Forum held a meeting where the concern was debated. The Local Authority has confirmed the approach to Element 3 (E3) funding for summer term 2026 to address these concerns. This communication summarises the decisions made and the actions required across the system to ensure clarity, stability, and preparedness.

The Local Authority has decided to amend the expected change in contributions towards Graduated Provision Maps as follows:

the 1.09% general increase in Notional SEN will apply from September 2026 for all schools and academies, to allow time for transition and to support the planning of provision for whole academic years regardless of governance arrangements
the 1.3% element applying from April 2026 for LA maintained schools and Sept 2026 for academies. This is to reflect when schools and academies will experience the benefit of the reversal of the block transfer in their core budgets.

We want to ensure consistency for maintained schools and academies and believe this is the fairest way to implement changes and allows for both schools and academies to plan their provision for an academic year. We are grateful to everyone who has been part of these discussions.

This is the updated guidance for Element 3 funding for 2026/27 that takes account of this decision.

While the overall approach to Element 3 funding in Norfolk remains broadly the same for 2026/27, it is important that you are aware of the refinements being introduced.

There are two key changes

There are two key changes.

1. No High Needs Block transfer this year

The LA will not make a transfer from the Schools Block to the High Needs Block, which has been a feature of Norfolk's funding formula for a number of years.
This means that, as a system, the previous top slice from school budgets, which was identified as formulaic Element 3 from September 2025, has been discontinued. From April 2026, this funding remains within the school block and is, therefore, part of the uplifted School Budget Share, distributed through the funding formula. To recognise this funding is expected to be used for SEND provision, this will be identified within the School Budget Share as an increase in Notional SEN of 1.3%.
This change enables schools that are due to receive gains to receive them and allows the Minimum Funding Guarantee (MFG) and Minimum Per‑Pupil Level (MPPL) protections in the system to be minimised.
Some schools may not see extra cash due to existing Minimum Funding Guarantee or Minimum Per Pupil Level protections (or both), which will have reduced as a result of the reversal of the block transfer on a like for like basis [01].

Why is this change happening?

This change follows significant engagement and feedback in recent years from schools regarding maximising core schools' budgets to support stability, certainty and improved planning to meet the needs of all children within mainstream settings.
This also aligns with the Government's National Funding Formula expectations.

2. Additional increase in notional SEND budget

The council is bringing in an additional 1.09% increase to the notional SEND budget.
The real terms value of this uplift will vary from school to school depending upon pupil characteristics affecting the funding formulas, e.g. FSM and IDACI.

Why is this change happening?

The council is bringing in the 1.09% uplift to bring Norfolk closer to national and statistical neighbour averages, in line with previously stated expectations from the DfE.

What these changes mean for Norfolk schools

The strategic intention is that approximately the same amount of overall funding in Norfolk is used for SEND provision; the previous block transfer is being redistributed from Element 3 to the core schools' budgets identified as Notional SEN funding [02], as demonstrated in this diagram. [03] :

Additionally, all schools will be expected to contribute a higher proportion of their core budget to SEN provision through the general increase in Notional SEN.

The technical paper sent to schools demonstrates how each school's 2026-2027 notional funding has been calculated.
Notional SEND funding (the proportion of funding schools are expected to be using for SEND provision) is now, on average, 11.5% of schools' core budgets. This increase in notional funding indicates that schools should be able to make effective provision for the majority of children in their schools with SEND, reflecting the position across other statistically similar areas and the national picture.
This means all schools will need to review how their core budgets are being used, and, potentially, change the way they plan, because a larger proportion of their core budget is now assumed to be contributing to SEN provision.
Schools will need to continue to demonstrate they have used their Notional SEN funding allocation to contribute towards the SEND provision in their setting. This means that there will be an expectation of increased contribution to funding your setting's SEND and AP provision, before an Element 3 contribution is allocated from the High Needs Block
For some schools, based on the information on their current agreed Graduated Provision Map (GPM), there won't be a planned E3 allocation on their SEN Memo because the evidence that we currently have is that provision costs are fully met by notional funding. It is recommended that schools ensure that provision for all their children with SEND is fully reflected on their GPM so that they can be funded accordingly. For academies, this could also include SEND provision within their trust that directly meets the identified needs of the children in the school. The GPM should be shared at their next Team Around the School (TAS) meeting. If schools believe their GPM requires urgent revision before their next scheduled TAS meeting, they can contact their team via the Inclusion and SEND support line, 0333 313 7165, with the relevant details.

Schools are encouraged to:

Ensure inclusion is planned across the whole school within the whole-school budget, not on a per-child basis.
Regularly review the quality and impact of provision.
Maintain up to date Graduated Provision Maps (GPMs), Identification of Needs in Educational Settings (INDES) and Inclusive Provision Self-Evaluation Framework (IPSEF).
Review transitions carefully, considering planned leavers and whether any time-limited interventions continue to be appropriate.
Work closely with their Team Around the School (TAS) to help plan confidently for the year ahead.

Support available to shape your provision

Norfolk County Council remains committed to supporting all schools with SEND provision, including through the various projects within the Local First Inclusion programme such as:
- The SEND and Inclusion Support Model (SISM), which has seen the introduction over the last year of multi-disciplinary Teams Around the School (TAS) for every school, offering increased access to support, early help and expertise and Zone Inclusion Partnerships supporting best practice.
- Local Planning Partnerships, helping to establish more support for children at risk of exclusion.
- The Specialist Outreach Advisory Service (SOAS), which has replaced the School 2 School (S2S) service, provides advice and guidance to mainstream settings to support cohorts of pupils with complex needs.

Budgeting guidance

Maintained schools should budget on a financial year basis; academies should use the academic year.
It may, therefore, be easier for maintained schools to write their GPM based on a financial year in line with their budget, or on an academic year if they organise their provision in this way. All schools should clearly state at the top of their GPM whether it covers the financial or academic year.
Use the information in your 2026-2027 Budget Share as the most accurate estimate for planning purposes. This figure is based on your total 2025-2026 currently agreed GPM, adjusted for the anticipated school's contribution through Notional SEN funding. As 2026-2027 notional funding increases, your E3 allocation will reduce proportionally to maintain the same total SEN funding for 2026-2027.
Your SEN budget has been forecast based on all the information we currently hold about your school. If your cohort's needs change significantly, resulting in a provision change, discuss this first with your TAS. If appropriate, update your GPM and resubmit it for moderation.
Once moderation outcomes are received, update GPM and budgets accordingly.
The summer term TAS meetings will support your transition planning to ensure that your provision continues to meet the needs of your SEN cohort in the most effective and efficient way.
For the purpose of GPM funding assumptions:
- the 1.09% general increase in Notional SEN will apply from September 2026 for all schools and academies, to allow time for transition and to support the planning of provision for whole academic years regardless of governance arrangements
- the 1.3% increase will from April 2026 for LA maintained schools and September 2026 for academies. This is to reflect when schools and academies will experience the benefit of the reversal of the block transfer in their core budgets.
Governors and trustees should understand these funding changes and the relevant inspection frameworks to support effective challenge and decision making.

If you need further support:

Individual school data showing planned E3 allocations by term for 2026/27 has been updated 23/03/2026 with the Budget Share Tracker on the basis of the latest agreed GPMs and implementing the above assumptions regarding contributions in line with Notional SEN values.
A technical paper for finance leads has been sent out to schools, outlining how 2026-27 notional SEND funding has been calculated.
Local Authority Maintained schools can speak with their LA financial adviser where they require financial support.
Academies can speak with their trust leadership and finance leads for advice.
All discussions regarding provision planning can take place at your TAS meeting.
For further queries, email the Element 3 funding mailbox: [email protected].

Thank you for your continued commitment to inclusive and effective provision to support all pupils to flourish.

[1] I.e. If pupil numbers and characteristics remained unchanged year-on-year, all schools will see a reduction in these protections as a result of the block transfer reversal. However, if pupil numbers and characteristics have changed year-on-year, a school may see an increase in relation to those reasons, rather than the block transfer reversal. [Back to text for endnote 1.]

[2] Please note that because of the nature of the funding formula - Notional SEN allocations are not impacted by Minimum Funding Guarantee or Minimum Per Pupil Level protections - and the year-on-year changes that schools will see in their pupil numbers and characteristics, schools will not see, individually, a direct swap of one to the other. This would not be possible to achieve, and schools budgets change year-on-year with pupil changes. Schools are encouraged to get in touch if they anticipate that this transition will cause them difficulties. [Back to text for endnote 2.]

[3] In a number of cases, the provision identified by schools on their GPM did not reflect full use of the formulaic E3 funding, which was an identified risk of the formulaic funding approach. Where this is the case, those schools will see their E3 funding for 26/27 adjusted to reflect the provision that they have identified on their GPM. [Back to text for endnote 3.]