Update on industrial action in local schools

As a new half term begins, we want to provide you with an update on the situation affecting some of the borough’s schools.

We share your anxiety over the current state of affairs. Any prolonged loss of school time risks harming a child’s education, and the current funding arrangements unfairly disadvantage those who work in Waltham Forest schools. 

The current environment for schools in Waltham Forest is a challenging one. A lack of funding, falling school rolls, and ongoing inflation is placing an increasing financial burden on schools. Whilst the council does not set funding levels, we must act in line with statutory guidance. Although we do not have a direct role in negotiations, we are providing support where possible.

How are local schools funded?
Schools are funded through the Designated Schools Grant (DSG) from central government, not through council tax. The level of funding available is set by central government, not locally. Academy schools receive money directly from the Department for Education (DfE).

What is the breakdown of school funding received?
The Designated Schools Grant is split into four distinct funding blocks:

• Schools Block: core funding for pupils in reception to Year 11 in maintained schools and academies.
• High Needs Block: supports the provision for vulnerable children and young people, mainly those with special educational needs and disabilities from 0 to 25 years of age.
• Early Years Block (EYB): funds early years entitlements for children up to reception age.
• Central Schools Services Block (CSSB): funding for historic commitments and ongoing statutory responsibilities. 

How is school funding calculated?
This funding model is based on pupil numbers. When pupil numbers in a school decline, the amount of funding is reduced accordingly. Falling school rolls are an issue across the capital; the issue is not exclusive to Waltham Forest. In February this year, London Councils published a report that lays bare the scale of the problem across the capital.

Who is responsible for schools’ financial management?
It is a school’s legal responsibility to set a balanced budget, as with all public sector bodies. The council can, at the request of the school’s governing body, agree a ‘licensed deficit budget’ for up to a maximum of three years, during which time the school must return to a balanced budget.

How is SEND funding allocated?

SEND funding in mainstream schools is partly delegated directly to schools as part of their budget. This includes a ‘notional SEN fund’ that pays for the first £6,000 of any support for a SEND child. Additional funding is paid via top-ups from the High Needs Block of the Designated School Grant. 

Top-ups are determined at local level and are paid according to the needs of the child. You can read more on the Waltham Forest Schools Hub. 

How does SEND funding affect core funding for a school?
The purpose of SEND funding is to ensure that provision for children with special educational needs or disabilities is effectively resourced. In effect, SEND funding supports SEND provision and core funding supports core costs. Whilst there is a relationship between the two, current financial challenges in schools are not based on, or would not be addressed by, SEND funding that is ringfenced for children with SEND.

What money does the council receive to support children with SEND and how is this passported to schools?

There are four ways that schools receive SEND funding from the council.

• The highest amount of SEND funding is via the High Needs Block. The total amount allocated to Waltham Forest as part of the Dedicated Schools Grant is £65.8M. Of this, £10.1M is retained by the DfE who give it directly to academies and colleges. The distribution of the remainder is governed by DfE guidance and agreed locally at Schools Forum (please see the February 2026 Schools Forum report for details of 2026/2027 allocation and distribution). This money can only be used for the direct delivery of education for SEND children. More money goes into the SEND education service than we currently receive from the government. 
   
• In addition to this, the council received Capital monies for SEND school expansion. For 2026/2027 this was £3.38M. This money cannot be used for revenue costs such as salaries - it can only be used to develop new SEND places in the borough such as the adaptation of the Chapel End early years site to become a Special School run by Lime Academy, and the additional resource provisions at Thorpe Hall, Mayville, Kelmscott, and Willowfield.
   
• In April 2026 the Government announced allocation of an additional £2.37M to support the Experts at Hand programme, which is part of the wider SEND reforms. We are awaiting publication of the detailed guidance regarding allocations of this money, which is expected in June. It will be utilised by local authorities in partnership with the local NHS Integrated Care Board to deliver the SEND reforms and to employ additional Educational Psychologists, Speech and Language Therapists, and Occupational Therapists to support children in schools.
   
• In June 2026 we are expecting details of the Government’s Inclusion Mainstream funding, which will be paid directly to schools to support inclusion based on a DfE formula. This money cannot and will not be retained by the council.

What is a maintained school and how are they different to academies?
Maintained schools are state schools that fall under the responsibility of the local council. Academy schools operate in a different way and receive funding directly from the DfE.

What is the current financial position of Waltham Forest’s maintained schools?
There are 44 maintained schools in the borough, of which 19 ended the 2024/2025 financial year with shortfalls totalling £3.2M. Current forecast closing balances for 2025/2026 show an even starker position, totalling a potential £7.3M shortfall. 

As referenced above, the school funding model is based on pupil numbers. Some schools have only filled places up to 26 per cent of their full capacity. Even schools that start with a full intake typically see an increase in empty spaces as year groups go through the school.

To further illustrate this point across the whole borough, 13 per cent of spaces in reception classes are empty.  This has resulted in a reduction of over £2m of central government funding for Waltham Forest schools.

How is the council supporting schools in a difficult financial position?
Several schools have requested council support through ‘consolidated cash advances’ because they have been unable to set a balanced budget. The council has provided this support to ensure that salaries are paid and to prevent disruption to children’s education. In order to set a balanced budget and address their deficit, some of these schools are reviewing their outgoings - this includes reviewing staffing numbers and structures.

Can the council change the repayment terms of cash advances?
The council has provided interest-free advances, so that schools will not have to pay back any more than they receive. However, the Department for Education’s statutory guidance advises that repayment of a deficit arrangement cannot exceed a maximum of 3 years, and the local authority cannot write off deficits, which is why school governing boards are needing to review their multi-year budgets and outgoings.

What role can the council play in relation to strike action?
Several schools in Waltham Forest have experienced strike action in recent years. As industrial action is a dispute between the employer (the school’s governing body) and the unions, the local authority is not a direct party to negotiations. Our role is to offer support and encourage engagement with ACAS, an independent intermediary, to resolve issues as swiftly as possible.

Are any there any consultations currently taking place in local schools? If so, what are they about?
Two schools are currently consulting on potential changes to staffing arrangements. This is through a HR process overseen by each school’s governing body. 

• We are urging all parties, including parents and carers, teachers and school staff and union representatives to engage in constructive dialogue to attempt to resolve any issues so that children’s education can resume as soon as possible.
   
• While the council does not set the school funding model, and only acts to administer the money, we have actively supported negotiations between school governors, NEU representatives and relevant parties.
   
• We are keeping local MPs and key stakeholders informed so that they can help share important information to constituents who may contact them with concerns.
   
• Although the issues around funding are not in the council’s control, we will lobby the government in partnership with our local community and MPs for changes to the National Funding Formula to receive the increased levels of funding for our schools, including advocating for Waltham Forest to be classed as an Inner London Borough to increase teacher salaries.