Submissions required for new Element 3 Funding indicative allocations for the 2025/26 academic year

Norfolk's new Element 3 model 

We are intending to move to the new arrangements for Element 3 funding in Norfolk from the start of the 2025/26 academic year.      

This is to allow schools to align their planning of provision to their academic year planning, alongside allowing time to undertake the planning and preparation for all.     

Presuming that the Schools Block to High Needs Block transfer is agreed by the Secretary of State for 2025/26, we are intending that schools will receive a formulaic allocation of Element 3 funding from September 2025 based upon the pro-rata amount relating to the autumn 25 and spring 26 terms.  This will be distributed on the principles of the schools funding formula.     

The Government provided the DSG allocations on 18 December and we are in the process of determining school budget shares as per normal due process.  Once this work is complete, we will be able to publish provisional Element 3 formula allocations, and we will notify schools and trusts.     

The remainder of the Element 3 funding in Norfolk will be distributed based upon the principle of cohort funding for a school, which will take into account the identified needs and support plans for children with SEND, the school's planned SEND provision (as can be demonstrated through a Graduated Provision Map), and the school's self-assessment of their SEND offer (IPSEF).     

In the longer term, conversations regarding the needs of children, provision within a school, and the funding of that provision, will take place as part of Team around the School meetings (as part of the SEND and Inclusion Support model currently being rolled out across the county).     

However, we all need a starting point and to do this we are asking schools to submit their:    

• INDES with SEN support plans for CYP with SEND   
• Graduated Provision Maps for their school   
• IPSEF for their school   

We do not expect this to be an onerous task for schools who keep these documents up to date, and we ask that these are submitted by February half term.     

Where these documents are submitted prior to half term, we will review and provide an indicative Element 3 allocation for the 2025/26 academic year by Easter.      

Indicative allocations will be after Easter where documents are submitted after February half term.  

The February half term deadline is to enable schools to have information by Easter to enable planning.  This timeline is designed in line with feedback from the system regarding ways of working to support schools to plan for the new academic year with as much notice as possible.  Please note that this does not mean that schools will not receive Element 3 funding for the 2025/26 academic year if submissions are made after February half term.  Instead, it will mean that they are likely to be notified of their indicative allocation after Easter.  For further detailed guidance see Element 3 Guidance: 2025/26 Academic Year. 

We have been developing the new Element 3 model since May 2024. To do this, we've worked with school leaders, the Local First Inclusion Reference Group, held a Dedicated Schools Grant (DSG) consultation with schools, and reviewed how Element 3 funding works in other local authorities. Consideration has also been given to both DfE publications.   

Support is available, including drop-in surgery sessions.  Further details available within the guidance on our website. 

We have aimed to achieve a model which combines the benefits of a 'needs led' and 'money follows the child' approach, whilst considering cohorts as well as individual children. We also wanted to provide the certainty and stability that formula funding via proxy indicators can achieve. We have aimed to support schools to meet need earlier and more effectively, reducing the escalation of need and demand for specialist provision and enablement of, high levels of inclusivity in mainstream schools, alongside appropriate levels of scrutiny and challenge. We have designed the model to be as equitable and clear as possible, to provide the greatest level of support to the system within the resources available.    

Key aspects of the new model are:    

• Funding to be applied fairly and transparently across the county   
• Controls for funding   
• Mechanisms to ensure funding is being used for its intended purpose   
• A focus on funding where there is most complex need   
• Funding to be able to be used flexibly by schools across their high SEND cohorts    
• Funding needs to be linked to evidence   
• A mechanism to recoup funding that is not used appropriately   
• To work collectively within the system to meet high needs within the budget available   

In 2020/21 the Element 3 budget was £9m, but demand has continued to rise significantly and by 2024/25 the budget had risen to £35 million. We are proposing it remains at the same level for 2025/26. A final decision will be made on this by the Norfolk County Council budget process in February. The cumulative deficit on the overall budget has continued to rise and we have to ensure the budget is sustainable.   

Norfolk Schools Forum have reviewed the new model and gave feedback about its principles at their December 2024 meeting.  Read the forum's feedback in the agenda and papers on the Norfolk Schools Forum page of the Norfolk Schools and Learning Providers website.