Lewisham Council is facing a projected £10 million overspend on its high needs block for special educational needs and disabilities (SEND) services, a figure that has remained consistent since the previous reporting period. This overspend is largely attributed to a national increase in Education, Health and Care Plan (EHCP) applications following SEND reforms.

The council's Public Accounts Select Committee met on Thursday, 17 September 2026, to discuss the financial monitoring report for the 2026/27 period. The report highlighted the significant overspend within the high needs block for SEND services.

Children with Education, Health Care Plans
Line graph showing the number of children with Education, Health Care Plans from April to March across four financial years (23/24 to 26/27).Source: Public Accounts Select Committee papers, 17 September 2026

The council is awaiting government confirmation on funding for this deficit. If this funding is not secured, the high needs deficit could reach £34.4 million cumulative by the end of the year. The current deficit is ring-fenced against the Dedicated Schools Grant (DSG) through a technical accounting override, but this override falls away in 2028, which means it will fall to our general fund reserves. The council will not know the outcome of its SEND Reform Plan, and therefore what quantum of support it will receive, until September 2026.

The committee reviewed the financial monitoring report for the 2026/27 period, which detailed the substantial overspend in the high needs block for SEND services. This situation has been exacerbated by a national surge in EHCP applications, a consequence of SEND reforms.

Further details on the council's financial position can be found in the Public reports pack presented at the meeting.