Element 3 funding for 2025/26 academic year

Evidence collection​​​     ​​ 

We'd like to take this opportunity to recognise all schools for the work you've undertaken to provide us with accurate and current information. We understand that this impacted schools differently and that for some this was a very challenging ask.  We are very grateful for all schools' engagement as we move towards the new approach. In addition to ensuring all schools receive ​sufficient ​​​​​funding​ to meet the needs of their children in a cost-effective way​, this information is vital to our wider shared understanding of the children and young people with SEND in Norfolk.  

This work undertaken across Norfolk will result in the system, for the first time, having a clear picture of the identified need in mainstream schools and the overall number of pupils with high SEND needs being supported, effectively providing a Needs Analysis. This will be hugely beneficial for the system, and the LA, to have a much better understanding of the level and pattern of need, variations across the county as well as the different models of support being implemented by mainstream schools to meet that need.  Thank you. 

The submissions from mainstream schools across Norfolk received by February half terms included: 

• 21,399 INDES for children and young people 
• IPSEFs for all settings 
• Graduated Provision Maps (GPMs) for 384 schools​     ​​     ​ 

​​​A​llocations autumn 25 and spring 26 

As stated in the Element 3 guidance document issued in January, Element 3 funding for 2025/26 will be distributed in two blocks: (i) formulaic allocation and (ii) cohort allocation.  

Formulaic allocation 

​​​Currently, 1.5% of our Dedicated Schools Grant (DSG) schools' allocation is moved away from schools to the high-needs block. This has been a necessary action as part of our negotiations with the DfE regarding their Safety Valve Funding support. However, through discussions with the Schools Forum, we recognise the significant funding pressures schools are under and that the 2025/26 funding settlement from the DfE is not sufficient to meet inflationary pay pressures. The Schools Forum view agrees that the 1.5% block movement away from schools is not sustainable and it adds additional uncertainty to budget planning due to the previous Element 3 approach. Therefore, the strategic direction is to remove the need for the 1.5% block movement away from schools. ​​ 

This has been a complex process. We worked to shape the fairest approach based on previous feedback through the autumn consultation process and reference groups and have utilised the distribution methodology of ​the ​National Funding Formula at a local level to identify school level allocations​ so that schools receive funding based on the DfE's methodology.​​     ​   

What it means  

The funding being distributed via this allocation is £5.7m of the overall £35m budgeted for this ​(Local Authority) ​financial year​, which is the pro-rated amount of the 1.5% block movement for the period September 2025 to April 2026.​​     ​ This initial phase of funding has been calculated using the schools' funding formula, using the tool provided by the Department for Education (DfE) to calculate school budget shares (this tool includes Minimum Funding Guarantee (MFG) and Minimum Per Pupil Level (MPPL) protections.  

When the additional funding is processed through the tool (on top of existing 2025-26 budget shares), there is inter-play with the MFG and MPPL protections which means that, whilst the majority of schools see an allocation, some schools do not receive any allocation via this route, and some only receive a very small amount.  This is because the additional funding allocated through the tool increases the school level allocations before the protections are applied, meaning that they then require less or no protection if additional funds are allocated through the DfE funding formula tool. However, the cash position remains the same (because of the protections) or only increases slightly.  ​It is important to note that this is what would have happened if the 1.5% block movement had not taken place and money was allocated in line with the rules set by the DfE.​ 

This formulaic allocation funding will need to be considered by the majority of schools when planning their SEND provision.  The LA will consider these allocations (including where there is no, or very little, allocation) when reviewing the school's overall GPM and resources required to meet high level SEND. 

Cohort allocation 

Since the submission deadline (February half term), NCC officers have been carrying out the moderation of schools' information submitted to ensure communication of the indicative funding allocations to settings can take place within timescales previously advised. We can now confirm that we will let settings know that the outcome of this process on Tuesday 22 April via email and/or Budget Share Tracker.   

These allocations will be for autumn '25 and spring '26 having taken into account the formulaic Element 3 that each school will be allocated. Please note that if there is a significant change to your cohort, or the needs of the cohort, then these will need to be discussed with the LA to allow for any required revision of allocations.   

We had anticipated this scale of moderation and have put additional resources in place to undertake this; the work is really important, and we want to do a good job, and we hope that school leaders understand that this means it is taking the time that we anticipated it would do.  We understand that schools and trusts will be impacted by the time that has been required to undertake this work, particularly given the challenging financial circumstances that all schools and trusts are facing following this year's funding settlement. If we can release the information earlier, then we will do so.   

We have already been in contact with some schools where information is incomplete, or we have queries about the information.  Some schools may still hear from us before the end of spring term as we work methodically through the moderation process.  If there are queries still outstanding, or we have not received full information, then we may not be able to publish indicative allocations for those particular schools.  However, we will publish the formulaic part of E3 funding for those schools. 

 Further information  

We want to offer as much support for this process as possible. We are here to answer your questions, please contact the team via the Element 3 funding mailbox if you require clarification or have any queries element3funding@norfolk.gov.uk.