Richmond Council is facing financial strain in its education budget, with forecasts indicating a £5 million overspend in the Dedicated Schools Grant (DSG), leading to a cumulative deficit of £5.25 million.
The key pressure on the DSG is the rising number of children and young people who require support for special educational needs and disabilities (SEND), and the increasing complexity of their needs.
The Education and Children's Services Committee addressed the overspend at a meeting on Thursday 13 November 2025. The rising number of children requiring support, coupled with their changing needs, is straining the budget. However, there is an underspend of £300,000 in the early years block.
To manage the rising costs within the high needs block, the council is focusing on improving the efficiency of commissioning services and reforming the authority's post-16 options, including developing a new provision.
Councillor Niki Crookdake inquired about a pan-London high needs placement project aimed at addressing these financial pressures. Andrew Reeve, Associate Director for Education Capital Delivery, explained that delays arose due to difficulties in securing agreement among the 32 London boroughs and with the Department for Education (DfE) on loan management. Reeve indicated that these issues have been largely resolved, with the London borough of Waltham Forest now partnering with the DfE to advance the proposal. The project is expected to be operational by 2026 or 2027.
Councillor Zoe McLeod raised concerns about value for money regarding the six children and young people whose support costs exceed £10,000 per week. Lucy Kourpas, Executive Director of Children's Services, responded that she and the Director of Children's Social Care conduct weekly placement meetings to review all children's placements, focusing particularly on complex cases. The aim is to ensure that placements meet the child's needs and that the council is effectively negotiating costs. The overspend in the general fund budget supporting children's services is due to a rise in the number of children in higher-cost placements, such as independent fostering agencies and children's homes. At the time of writing the report, six children and young people had placements costing more than £10,000 per week, compared to just two in March.
Councillor Crookdake sought clarification on whether the £1.6 million deficit from seven mainstream schools was included in the overall £5 million overspend. Ms. Kourpas clarified that school balances operate separately from the overall DSG fund.
The committee noted the report, acknowledging the financial challenges and ongoing efforts to manage the overspend.
