Sutton is grappling with a £10.6m deficit in its Dedicated Schools Grant (DSG) High Needs Block, primarily due to increasing demand for Education, Health and Care Plans (EHCPs). The issue was discussed at the People Committee meeting on Thursday, 25 September 2025, where members reviewed the Special Educational Needs/ Disabilities and Alternative Provision (SEND/AP) Strategy 2024/27 and explored actions to mitigate the budget pressures.
The deficit, carried forward from previous financial years, is a key concern for the council, which is working to manage the ongoing pressures through a Dedicated Schools Grant Management Plan. This plan includes measures such as Ordinarily Available Provision guidance for schools, a SEND Support Advisory Partnership (SSAP) pilot to provide advice and funding for pupils at SEND Support, transition plans for high-needs children moving into Reception classes, creation of additional specialist and alternative provision (AP) places, and a strategy to reduce Non-Maintained and Independent (NMI) costs.
The Financial Year (FY) 2024/25 outturn position on the Council's Dedicated Schools Grant position was an overspend of £9.2m. The deficit carried forward from FY2023/24 was £1.4m, giving an overall deficit carried forward to FY2025/26 of £10.6m.
Priority five of the Sutton SEND Strategy is to create a more financially sustainable system. This forms one of the four LBS financial sustainability programmes alongside Children's Social Care, Adult Social Care, Housing and Temporary Accommodation.
According to the People Committee In Year Performance Report, the deficit is a result of funding from the government not keeping pace with the rising costs of supporting a growing number of children with EHCPs. The report pack notes that the government has announced that national reforms of the SEND system will be published in the autumn 2025. These reforms aim to 'make the system more inclusive and improve outcomes for all children and young people'. Alongside the white paper, the Government is expected to set out further details on how local authorities will be supported to transition towards a reformed system as part of the upcoming local government funding reform consultation.
Despite the financial challenges, Sutton has made progress in supporting children with SEND. According to the SEND AP Strategy Year One Update, key developments include:
- The introduction of a new Playwise Support Passport to improve the experience of transitions for children and young people with complex SEND/Medical needs.
- The development of
Every Child Every School
guidance co-produced with educational settings across Early Years, Primary and Secondary phases to articulate what provision is expected to be 'ordinarily available' in our mainstream schools to support children with SEND. - Sutton has formally signed up to the London Inclusion Charter and has secured funding for five primary schools trained in the 'Talk Matters' programme.
- Additional Alternative Provision has been developed at the Limes College, and that construction work is underway for a Preparation for Adulthood (PfA) hub at the Sutton Life Centre.
The SEN2 Data Overview - June 2025 shows that Sutton performs well against London and national averages against most of the metrics recorded in the dataset. The timeliness in completing EHCPs within statutory timeframes remains strong when compared to the national picture. However, the data also indicates areas where Sutton is working to improve:
- EHCP requests continue to increase above national and London averages.
- Decisions not to assess are above the national averages and last year's percentage. To strengthen support available, cases are being referred to an SEND Support Advisory Partnership, a multi-agency partnership that provides advice, resources, interventions, and, where appropriate, additional funding to support next steps (a pilot has been completed in the summer term with a view to full roll-out in September 2025).
- There has been a reduction in timeliness in 2024 over 2023 due to continued growth in the number of EHCPs and associated casework, including the Annual Review process where staffing resources have not grown in a commensurate way.
- Sutton's SEND Tribunal rate has increased by 0.3% to 3.2% (representing an increase from 73 to 90 appeals lodged); this is in line with the national rate, which rose by 0.7% to 3.2%.
Despite the financial pressures, Sutton Council is committed to creating an inclusive place for everyone. The Draft Area SEND Self Evaluation 2025 indicates that children, young people and residents benefit from the effective SEND provision that is in place, and there are strong foundations to build on for the future.
