Wandsworth schools are facing increasing financial strain, with the Dedicated Schools Grant (DSG)1 deficit growing by £7.3m to a total of £21.2m, according to discussions at a recent Wandsworth Schools Forum meeting. The deficit now represents 7.3% of the DSG income.

The deficit is primarily due to rising costs in the High Needs Block (HNB), which funds provisions for pupils with special educational needs and disabilities (SEND). The report pack presented at the meeting highlighted that while EHCP2 growth in Wandsworth had been below the national trend since 2020, there was a notable increase in 2024, with growth at 6.3%.

Chart showing Wandsworth's Dedicated Schools Grant (DSG) deficit, both in-year and accumulated, with a 'likely but ambitious' scenario.
Chart showing Wandsworth's Dedicated Schools Grant (DSG) deficit, both in-year and accumulated, with a 'likely but ambitious' scenario.Source: Wandsworth Schools Forum papers, 30 June 2025

Several factors contribute to the financial challenges. The report pack identifies a general increase in population deprivation as a potential reason for the increase in EHCP requests, stating that special education needs are closely correlated to levels of deprivation in the community. Challenging school finances are also impacting the ability of schools to meet needs at the SEN support level. EHCP requests are currently at a peak, with 576 received in the last 12 months, nearly 10% more than the previous year.

To address the growing deficit, the council is implementing a range of recovery plan strategies and business cases. The DSG Recovery Strategy - Delivery Plan outlines key delivery dates for these strategies, primarily in September 2025 and beyond. According to the DSG Recovery Strategy, in-year deficits are projected to begin declining in FY 2027-28, with the HNB almost breaking even in FY 2029-30, assuming effective EHCP growth suppression. In-year surpluses would arise in FY 2030-31, which would start to reduce the accumulated deficit from FY 2030-31 onwards. These strategies include:

  • Nursery Inclusion Project for All (NIPA): Providing early intervention and support to children in their nursery year to enable successful transition into Reception without requiring an EHCP.
  • SEN Support Fund: Funding training for mainstream schools to reduce EHCP assessment requests. This fund is a budget used to fund training for mainstream primary and secondary schools targeted at reducing the number of EHCP assessment requests.
  • Enhanced Transition Project: Providing support for pupils during periods of transition, providing a multidisciplinary network of support for pupils selected, providing additional support at periods of transition without the need for an EHCP.
  • Child Poverty Alleviation Strategy: Ensuring families have access to the right support to prevent them from falling into poverty.
  • SEND Sufficiency: Investing in local state-funded provision to reduce reliance on independent placements.
  • Social, Emotional and Mental Health (SEMH) intervention and training: Enhancing support for young people struggling with SEMH needs.
  • In-House Tuition: Bringing tuition services in-house, led by Francis Barber PRU[^4] and the Hospital and Home Tuition Service (HHTS).
  • Rapid Response Team: Creating a team for quick interventions to maintain placements in mainstream settings. This team will target support at crisis points to help maintain placements in mainstream settings.

Several measures are being taken to ensure that mainstream schools are adequately equipped and supported to meet the needs of students with SEND, reducing the need for EHCP assessments. These include the SEN Support Fund, NIPA, the Enhanced Transition Project, the Rapid Response Team, and SEMH intervention and training.

The Schools Forum also discussed school balances, noting an overall increase in school balances between 2020-21 and 2024-25, with cumulative reserves now at £43.4m. However, academy reserves have shrunk by 5.7% since August 2023. The report pack indicates that Wandsworth primary schools continue to compare well against schools throughout England on both an in-year and total level.

Additionally, the forum received information on a proposal to launch a needs-led implementation of AV1 robots, a technology to support children with medical needs, children experiencing emotionally based school avoidance (EBSA), and children covered under Section 19. The AV1 programme would be overseen by the Inclusion Services/EP / Wandsworth Hospital Schools and Home Tuition Service to cover children particularly with anxiety related attendance barriers in a collaboration with 5 Mainstream Primary Schools, 1 Mainstream Secondary School, HHTS, and Section 19 Cases. The report pack states that the AV1 robot allows pupils to maintain their presence in the classroom through secure, real-time audiovisual communication, and that Wandsworth Council is seeking to introduce up to 20 AV1 robots to provide a practical, technology-driven solution that maintains access to education while students are unable to physically attend school. The report pack outlines that AV1 can help with attainment, attendance, wellbeing, and transition of the child using the device.

The next Schools Forum meeting is scheduled for 13th October 2025. The agenda for the 30th June meeting also included future meeting dates.

  1. The Dedicated Schools Grant (DSG) is the primary source of funding for schools and local authorities' education-related services in England. ↩

  2. An Education, Health and Care Plan (EHCP) is a legal document that describes a child or young person’s special educational, health and social care needs. ↩