Kingston schools are facing a projected deficit of £12.7 million for the 2025/26 academic year, primarily due to significant pressures within the High Needs Block.

The Dedicated Schools Grant (DSG) allocation for 2025/26 is projected to be overspent by £12.760 million. This overspend is largely attributed to the High Needs Block, which is forecast to overspend by £13.148 million. This increase is driven by rising costs in areas such as 'Top ups - Academies' and 'Independent Placements'. The cost of top-ups depends on rates set by schools, and the expected spend on independent places relates to all independent and non-maintained placements for pupils under the age of sixteen. Specifically, 'Top ups - Academies' saw an increase of £4,909,539 and 'Independent Placements' saw an increase of £3,438,296 in the 2025/26 projected outturn compared to the 2024/25 outturn.

The number of Education, Health and Care (EHCP) plans has also seen a substantial increase. As of November 2025, Kingston maintained a total of 2,136 EHCP plans. The trend indicates an increase, with a 9.8% rise in the number of plans issued over the past 12 months and an 11% increase in requests for EHC needs assessments compared to the previous 12 months. This has led to 145 new plans being issued since March 2025.

While the Schools Block is projected to remain on budget and the Early Years Block is anticipated to underspend by £0.416 million, the Central School Services Block is expected to overspend by £0.030 million. The services encompassed within this block include Prudential Borrowing, Copyright Licences, Schools Forum, Primary Mental Health, Virtual School, Family Support Team, Admissions, SACRE, Free School Meals (EOTAS), School Improvement Grant, ESG - 14-19 Commissioning, ESG - ES Management, ESG - School Place Commissioning, ESG - Education Inclusion, ESG - School Improvement, and Teachers Pension.

Looking ahead to the 2026/27 academic year, the provisional DSG allocation is £219.200 million, an increase of £11.962 million. This includes the roll-in of previously separate grants, specifically the Schools Budget Support Grant (SBSG) and National Insurance Contributions Grant (NICs), which were received as separate grants in 2025/26. The 'Change due to roll in of non DSG grants' amounts to £7.480m.

To address the financial challenges, Kingston schools are undertaking significant work across all partners to improve efficiency. The team is working to balance the need for cost mitigation with the statutory duty to support young people. The SEND Futures Plan aims to improve outcomes for children and young people with special educational needs and disabilities (SEND) and enhance the financial sustainability of the system. It is imperative that all local partners continue to work together to implement plans and improve the efficiency and quality of local education support. [1]

The budget for the High Needs Block in 2026/27 is £37.213 million, and for the Early Years Block is £32.979 million.

[1] For more information on the SEND Futures Plan, see the update document: Kingston SEND Futures Plan Update