Richmond schools are facing a £3.4 million funding shortfall, according to reports presented at the Richmond Schools Forum meeting on Thursday, 3 July 2025. The deficit is projected for the 2025/26 financial year, raising concerns about the future of education services in the borough.

The shortfall is attributed to projected spending of £239.086m on Dedicated Schools Grant (DSG) funded education services, against a DSG allocation of £235.641m. This would result in a cumulative deficit of £3.670m by the end of March 2026. A significant portion of the shortfall, £1.5m, is earmarked for Education, Health and Care Plans (EHCPs) anticipated to be approved before the end of the financial year. The increased demand for EHCPs is due to the growing complexity of needs in the borough.

Breaking down the DSG allocation, the Schools Forum heard that:

  • The Schools Block is projected to remain on budget at £162.429m.
  • The Central School Services Block is expected to underspend by £28,000, with a total spend of £1.054m.
  • The Early Years Block is also projected to underspend by £300,000, with a spend of £30.438m.
  • The High Needs Block is facing a substantial overspend of £3.773m, with a projected spend of £43.665m, including the £1.5m for future demand.

Pie chart showing requests by education stage, with primary education accounting for 46.6% of requests.
Pie chart showing requests by education stage, with primary education accounting for 46.6% of requests.Source: Meeting papers, 3 July 2025
Requests for EHC needs assessments by education stage.

The report 2025/26 Finance Update highlighted that Safety Valve Grant Funding and additional council funding, which had been available in previous years, are no longer relevant for 2025/26.

To address the £3.4 million funding shortfall, the Schools Forum approved a consultation with schools regarding centrally spent DSG budgets, ahead of the September Forum meeting. The budget timetable for 2026/27 includes several key dates:

  • July 2025: Consultation on 2026/27 budget issues, update on SEND Futures progress, and release of 2026/27 funding guidance.
  • September 2025: Feedback on the July consultation, vote on de-delegated and central items, and update on SEND Futures progress.
  • November 2025: Feedback on the September consultation and vote on the local schools funding formula.
  • December 2025: Release of 2026/27 Early Years Funding Guidance and provisional grant allocation figures.
  • January 2026: Update on grant allocations, consideration of the Early Years Funding Formula, and update on SEND Futures progress.
  • February 2026: Formal consideration and approval of the 2026/27 budget and associated formulas by the council.