Havering Council is grappling with a significant financial challenge, with its Dedicated Schools Grant (DSG) for children with Special Educational Needs and Disabilities (SEND) now facing an accumulated deficit of £67.7 million. This figure includes a reported overspend of £32.235 million.
The substantial deficit, detailed in the Council's Revenue and Capital Outturn Report for 2025/26, has been attributed to a rising number of children requiring SEND support and the increasing complexity of their needs.
Councillor Sue Benjamins, Deputy Leader of the Council and Cabinet Member for Finance, presented the outturn report to the Cabinet on Wednesday, July 8, 2026. The report, available in the Public reports pack, highlighted that while the council's overall financial position was better than initially feared, with an underspend of £37.7 million against the exceptional financial support requirement, the DSG deficit remains a major concern.
The council is eligible for a High Needs Stability Grant from the Department for Levelling Up, Housing and Communities, which is expected to cover 90% of the accumulated deficit. However, this is contingent on the approval of the council's SEND Reform Plan.
Despite the overall improved financial outturn for the council, the escalating costs associated with SEND provision underscore the ongoing challenges in balancing the budget for these essential services. The council is working to manage these pressures while seeking to ensure that children with SEND receive the necessary support.
