Kingston Council is grappling with a substantial financial deficit in its Special Educational Needs and Disabilities (SEND) services, with the cumulative shortfall on the Dedicated Schools Grant (DSG) soaring to £20.5 million. This alarming figure was revealed during a Schools Forum meeting on Monday, September 28, 2026.

The projected cumulative deficit currently stands at £20.532 million. However, this is expected to be reduced to £16.947 million following the allocation of a proposed stability grant of £22.093 million. This grant is intended to write off 90% of DSG deficits as at 31st March 2026 and will also repay general fund contributions made by the local authority as part of a safety valence agreement. Approval of this grant is subject to the successful sign-off of the Kingston SEND Reform Plan.

Melanie Hanson, Head of Finance for Richmond, presented the 2026-27 finance update, highlighting that the majority of the projected in-year overspend, amounting to £18.495 million, is attributed to the High Needs Block. This significant overspend is primarily due to historic underfunding of high needs education and a continually rising number of children requiring support. An allowance of £1.805 million has also been made for future need, based on the anticipated value of new Education, Health and Care Plans (EHCPs) expected to be agreed before the financial year-end.

Councillor Sachin Tulyani raised concerns about benchmarking Kingston's SEND spending against other boroughs, particularly the per-head spend on students with special educational needs. Melanie Hanson acknowledged this as a national pressure, with Richmond experiencing similar challenges. Charis Penfold further elaborated, noting that the historical high-needs block formula contributes to inequalities. According to Penfold, a historical formula that was very difficult and was not consistent across all local areas means that pupils in Kingston receive significantly less high-needs spend than those in Sutton.

Kingston Council is implementing a SEND Reform Plan to address and reduce the deficit. This plan aims to incorporate national reform requirements with local priorities to enhance outcomes for children and young people with special educational needs and disabilities. Key initiatives include the Specialist Expertise at Hand model, designed to provide early intervention, advice, and support to schools, providers, and early years settings without the need for a formal EHC needs assessment. The council is also focusing on inclusivity in mainstream schools, supported by a locally developed inclusion charter and strategy, recommissioning the core therapy contract, and expanding the cluster model to become a system-wide, borough-wide model by September 2027.

The Central Schools Services Block is projected to have an overspend of £314,000. This is attributed to the DfE's additional clarification about which items can be charged to the Central Schools Services Block and the High Needs Block, which led to a realigning of budgets to support compliance with that.

However, the Early Years Block is forecast to have an underspend of £300,000.

The trajectory of the deficit remains a significant concern. Without intervention, the unmitigated in-year overspend is projected to be £18.1 million for 2026/27, rising to £23.7 million for 2027/28. This projection is based on zero inflationary uplifts from the government while EHCP numbers continued to grow. The transformation plan is expected to take many years to fully mature, and the borough will be completely dependent on the rolling Stability Grant for years to come. The lack of clarity on future government support for deficits accumulating in 2026/27 and 2027/28 is also a concern, with confirmation that such support will not be unlimited.

Further details on the council's financial situation and reform plans can be found in the Public reports pack Monday 28 September 2026 16.00 Schools Forum.