Hounslow schools are facing a significant financial challenge, with a projected £4.24 million shortfall in the high needs budget for the 2025/26 academic year.
The deficit was discussed at the Hounslow Council Schools Forum meeting on 7 July 2025, where members reviewed the proposed budget and explored potential solutions. The high needs budget covers provisions for special schools, SEN centres, independent and mainstream schools, further education, alternative provision, and specialist support services such as speech and language therapy, CAMHS (Children & Adolescent Mental Health Services) teachers, SENSS (Special Education Needs Support Services), Early Years SEN, Portage team and the SEND team.
The proposed high needs budget for 2025/26 is £79.76 million, but available funding only amounts to £75.52 million, leaving a substantial gap. According to the SF 070725 ITEM 4.4 High Needs Budget 2025-26, the budget requirement is increasing across most categories of expenditure, with the largest increases in mainstream schools and maintained special schools.
Factors Contributing to the Shortfall
Several factors are contributing to the budget deficit. A key driver is the rising number of pupils requiring high needs support in mainstream schools. The budget for high needs provision in mainstream schools has increased by £2.09 million (22%), driven by an 8.7% projected rise in pupil numbers, from 969 to 1,053. This uplift also includes an additional £1.1M investment in the implementation of a banded funding model.
There is also a £0.75M increase in the budget for Hounslow's maintained special schools, reflecting an increase in the number of commissioned places from an average of 835 to 852. This includes an additional £0.45M allocated for the implementation of banded funding.
Addressing the Deficit
The council is working to address the high needs deficit through several measures. These include:
- Safety Valve Programme: Hounslow is participating in the Department for Education's (DfE) Safety Valve programme, aimed at managing high needs funding deficits. The DfE has committed to contributing £26.8 million over the medium term, contingent on the council demonstrating satisfactory progress.
- DSG Management Plan: The council is implementing a Dedicated Schools Grant (DSG) management plan to reduce the deficit over the medium term. This plan includes interventions and workstreams to ensure long-term sustainability.
- Banded Funding Model: The council has adopted the ONE Hounslow Banded Funding Model, which aims to deliver a fairer, more transparent, and needs-led approach to allocating top-up funding. The model includes descriptors of need for cognition and learning, communication and interaction, sensory and physical needs, and social, emotional, and mental health (SEMH). It also includes a banded funding calculator and a funding matrix, with four bands ranging from £2,000 to £30,000. The model covers mainstream schools, SEN centres, and special schools, and aims to provide similar funding to pupils irrespective of the setting. From September 2025, the new model will be applied to all new Education, Health and Care Plans (EHCPs) where the council has agreed to issue one.
Despite these efforts, the projected deficit on the DSG reserve as of 31 March 2026, is expected to be £16.57M before contributions from the DfE Safety Valve and Council General Fund are applied, and £11.69M after the contributions are applied.
The Schools Forum is scheduled to continue discussions on these financial challenges and potential solutions at future meetings. The next meeting is scheduled for 13 October 2025.
