Lewisham Council is grappling with a projected £2.5 million overspend in its dedicated schools grant (DSG), specifically within the high needs block. This financial strain mirrors the challenges faced in the previous year and represents a portion of the £83.5m allocated to the high needs block from the total £295.5m DSG allocation, according to the Period 4 Monitoring Report.
The Public Accounts Select Committee convened on Wednesday, 17 September 2025, to address this issue, as detailed in the Period 4 Monitoring Report.
Catherine Nid, Director of Finance, presented the report, highlighting that the overspend is primarily associated with the costs linked to the high needs block, consistent with the previous year's figures.
To mitigate these financial pressures, Lewisham is progressing a mitigation plan and collaborating with the Department for Education (DfE) as part of the Delivering Better Value (DBV) initiative. The council anticipates that these measures will stabilise and potentially reduce the overspend, which could positively impact other areas such as home to school transport and educational psychology services. (Period 4 Monitoring Report)
The Public Accounts Select Committee continues to monitor the situation, with updates expected at future meetings.
