Hillingdon schools are facing a significant financial challenge as the Dedicated Schools Grant (DSG) forecasts a £12.5 million deficit. This shortfall is primarily driven by the increasing costs of providing for children with Special Educational Needs and Disabilities (SEND), which are significantly underfunded by the Department for Education (DfE).
The Children, Families and Education Select Committee addressed the budget shortfall at a meeting on Thursday, 13 November 2025. The deficit remains unchanged from the previous month. According to the Select Committee Monthly Budget Report - Children Families and Education - November 2025, the in-year shortfall is entirely driven by continued demand and cost pressures in High Needs placements, which remain significantly underfunded in the DSG allocation from the DfE.
The committee is also working to address a cumulative deficit of £65.6 million. According to the minutes from the 25 September 2025 meeting, officers acknowledged the challenge and noted that while the in-year deficit had reduced, the long-term recovery plan depended on upcoming SEND reforms and continued lobbying of government.
The report also stated that the savings requirement for services within the remit of the committee for 2025/26 is £4.282m. As of Month 5, £4.009m (93.6%) of the savings and interventions are being recorded as banked or on track for delivery, with a further £0.273m (6.4%) being at initial stages of delivery. The report indicates that there are no savings that are being reported as having potential challenges in delivery.
At a previous meeting, officers noted that the education team had reduced the in-year DSG deficit. However, members raised concerns about the cumulative deficit, which stood at £65.6 million. The council is actively engaged with the DfE and pan-London networks to advocate for fairer funding.
