Summer Term Element 3 Funding - Decisions and Next Steps

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 debated this at their meeting last week.  Following this debate, the Local Authority has updated the approach to Element 3 (E3) funding for the summer term to address these concerns. This briefing outlines the decisions made and the actions required as a consequence to ensure there is a shared understanding ahead of the Easter break.

We want to ensure consistency between 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.

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. 

The Element 3 guidance has been updated and SEN Memos on the Budget Share tracker has been updated to reflect this decision.  Should you have any further queries, please contact the Element 3 funding mailbox: [email protected].

Summary of Decisions

1. Academy GPM Contributions - No Change Until September 2026

Academy contributions towards Graduated Provision Maps (GPMs) will not change from April 2026.

Adjustments will instead take effect from September 2026, aligning with academy financial year cycles and updated DfE funding notifications.

Rationale:

• Maintains predictability and avoids unplanned changes to SEND provision mid-year.
• Reduces risk of provision disruption for children with EHCPs.
• Responds to the collective view expressed by academy representatives at Schools Forum.
• Minimises risk of further challenge given the unclear view from the DfE and their advice to consult Schools Forum.

2. Maintained School Contributions - Alignment with September 2026

Maintained school expectations regarding the 1.09% increase (on average) in Notional SEN will also be aligned to September 2026.

This ensures consistency between sectors and enables schools to plan provision sustainably as part of their academic-year staffing and resource planning.

This is a change from the previously published guidance and expectations of implementation from April and seeks to ensure that all schools and academies are treated fairly with respect to Element 3 funding regardless of governance arrangements and also supports provision planning across schools for academic years rather than financial years.

Maintained schools will still be expected to contribute the 1.3% increase (on average) in Notional SEN from April 2026 that relates to the reversal of the Schools Block to High Needs Block transfer - this reflects that maintained schools will have received amended budget shares that take account of this change in the formula from April. 

Rationale:

• Supports system coherence and fairness across settings.
• Enables appropriate planning time to adjust non‑SEND budgets and reallocate resource.
• Mitigates risks of inequity or challenge.

System Impact

These decisions increase short term pressure on the High Needs Block.

The High Needs Block Working Group, alongside the LA, will explore how this pressure will be mitigated through system-wide actions and improved targeting of existing resources.

Required Actions:

For All Schools and Trusts

Please ensure that leaders, SENCos, and finance teams:

• Understand that no changes to GPM contributions will take effect in April 2026 with respect to the 1.09% increase in Notional SEN.
• Plan for implementation from September 2026.
• Continue to prioritise meeting children's needs within existing provision and budgets.
• Engage positively in discussions with the Local Authority regarding system-wide mitigation measures.
• Review the latest planned Element 3 contributions within Budget Share Tracker SEN Memos
• LA Maintained Schools: Budget meetings have been taking place in recent weeks, and plans will have been prepared based on the allocations previously issued. Please take some time to consider how best to use this funding to support the transition to the increased contributions, and discuss this with your finance officer at your next meeting. This may now be during your Revision 1 meeting in the summer term.

High Needs Block Mitigation - School Participation

Over the summer term, the LA will be engaging with settings on the following areas:

• Review of all AP/GPM provision, including outcomes, reintegration rates, and value for money.
• Patterns of admissions for children with SEND, identifying where additional support or challenge may be required.
• Exploration of ways the mainstream system can contribute to maintaining financial sustainability, supporting more children to remain successfully in local provision.

Schools and trusts will receive further detail shortly, including opportunities to inform the work of the High Needs Block Working Group.

Next Steps:

We will shortly be issuing:

• A more detailed briefing summarising the Schools Forum discussion and financial modelling.
• A communication to internal LA teams outlining expectations for supporting settings.
• A timeline for engagement activity in the summer term, including AP review work and SEND admission pattern analysis.

Should you have any further queries, please contact the Element 3 funding mailbox: [email protected]

Thank you for your continued partnership and commitment to supporting children and young people with SEND to flourish.