Kingston's schools budget is facing significant financial strain, with a forecast overspend of £10.46m pushing the accumulated deficit on the Dedicated Schools Grant (DSG) Adjustment Account to £18.73m. This is a considerable increase from the £8.27m deficit recorded in March 2025.
The schools budget is forecasting an overspend of £10.46m primarily due to pressures within the High Needs Block, which is projected to overspend by £10.76m, including a £1.05m contingency for future demand. A key factor is the increasing number of Education, Health and Care Plans (EHCPs), which have risen by a net 87 since 31 March 2025, bringing the total to 2,072. The Early Years Block is expected to underspend by £0.30m, partially offsetting the overspend.
The figures were revealed at a meeting of the Corporate and Resources Committee on Tuesday, where councillors reviewed the Revenue and Capital Budget Monitoring Report for 2025/26 as at Month 4 (31 July 2025).
The report highlighted that the schools budget was a key area impacting the council's overall financial position. The council continues to submit Safety Valve updates to the Department for Education (DfE) and has raised concerns about the lack of clarity regarding how to address the growing deficit. Further information is anticipated as part of the 2026/27 Provisional Local Government Finance Settlement concerning the handling of the deficit once the statutory override is removed.