Royal Greenwich schools are facing a significant financial challenge, with a projected £7.3 million deficit in the Dedicated Schools Grant (DSG), according to reports discussed at the Greenwich Schools Forum meeting on 8 October 2025. The deficit is largely attributed to increased demand for Education Health Care Plans (EHCPs) and SEN support.
The deficit is largely attributed to a £6.56 million overspend within the High Needs Block (HNB), which funds provisions for students with special educational needs and disabilities (SEND). The Schools Forum convened to address this critical issue and explore potential solutions. The key areas to be considered within the HNB are independent school placements, the cost and numbers of EHCPs, commissioned services, Local Authority Resource Provision (LARP) funding, SEN Alternative Provision and all Outreach Provision.
The HNB's national funding formula (NFF) allocation for 2025-26 is £76.9 million, an increase of £4.7 million from the previous year. However, after deductions, the HNB allocation is £69.07 million, while the projected outturn is £77.14 million, resulting in a £6.56 million variance, indicating that the allocation is less than the assessed needs. This leaves a significant gap in funding for independent school placements, Education Health Care Plans (EHCPs), and other essential services.
The report pack indicates the projected overspend within the HNB is contributing to an overall deficit position within the DSG of £7.32 million. The projected position is illustrated in the table below:
| Table 1 | ||||
|---|---|---|---|---|
| FINANCIAL YEAR | ||||
| A | D | |||
| SUMMARY | B 2025-26 DSG Allocation (J uly 2025) | C Projected Outturn P4 | Variance @ P4 | |
| £'m | £'m | £'m | ||
| S chools Block | 147.72 | 147.72 | 0.01 | |
| High Needs Block | 70.58 | 77.14 | 6.56 | |
| E arly Years Block | 56.71 | 56.44 | (0.26) | |
| Total | 278.42 | 285.13 | 6.71 | |
| Early Years 2024/25 | Adjustment | 0.61 | ||
| DSG Overspend | 7.32 |
To address the deficit, the Schools Forum is expected to note the DSG management plan template, which will be used to illustrate the plan to reduce DSG overspend. The revised plan will be adopted and issued to schools from 8 October 2025. Schools are also experiencing increasing budget pressures and are struggling to set balanced budgets, with 21 schools closing the 2024-25 financial year with deficit balances. For these schools there would be a push to bring them into the Deficit Recovery Scheme and they would be required to produce a deficit recovery plan to outline how they would address the deficit.
The Schools Forum is expected to note the revised Deficit Recovery Plan Template, which is more comprehensive and requests schools to provide detailed analysis of their staffing structures and plans to reduce spend over the projected period. The revised Deficit Recovery Plan (DRP) template is more comprehensive and requests schools to provide detailed analysis of their staffing structures and plans to reduce spend over the projected period.
