Redbridge schools are facing a significant financial challenge, with a projected £5.1 million deficit in funding for special educational needs and disabilities (SEND) for the 2025/26 financial year. This shortfall could impact the level of services and support provided to students with SEND in Redbridge schools, adding to existing financial pressures within the High Needs Block.
The shortfall in the High Needs Block, which funds education for students with SEND, was discussed at the Redbridge Schools Forum meeting on Tuesday, 8 July 2025. The deficit is expected to push the cumulative High Needs deficit to £5.889 million by the end of the 2025/26 financial year.
The High Needs Block is a specific portion of the Dedicated Schools Grant (DSG) allocated to local authorities to fund education for students with special educational needs and disabilities (SEND).
The Schools Forum was scheduled to discuss the activities of the High Needs Funding sub-group and to review the 2025/26 High Needs Block position. The High Needs Funding sub-group aims to review the impact of current high needs funding allocations and develop new approaches to allocate funding more effectively, with the goal of enhancing value and outcomes for all children and young people with Special Educational Needs and Disabilities (SEND) in Redbridge. In May 2025, the group focused on reviewing the impact of out-of-borough top-up funding arrangements, assessing inconsistencies in income received by schools, and formalising a consistent process to support schools in reclaiming costs from other local authorities. A standardised out-of-borough funding calculator and process guide was developed and shared with the group to support more consistent practice. A formal LA escalation procedure has also been defined to support schools where funding is disputed or delayed, ensuring a structured route for resolution.
The Public reports pack included a table that compared the allocation before deductions against expenditure for 2022/23 to 2024/25 and anticipated outturn for 2025/26:
| Service Area | 2025/2 6 Budget £m | Projected £m | Variance £m |
|---|---|---|---|
| Mainstream Primary Schools in borough | 8.690 | 10.401 | 1.711 |
| Mainstream Secondary Schools | 5.804 | 6.590 | 0.786 |
| Mainstream Out of borough | 1.111 | 0.925 | (0.186) |
| Special Schools in borough | 20.128 | 24.097 | 3.969 |
| Special Schools out of borough | 2.157 | 2.728 | 0.571 |
| NMISS | 6.000 | 5.553 | (0.447) |
| FE Colleges | 4.000 | 3.552 | (0.448) |
| Pupil Referral Units | 3.190 | 3.829 | 0.639 |
| Personal Travel budgets | 0.350 | 0.472 | 0.122 |
The table shows that 'Mainstream Primary Schools in borough' are projected to overspend by £1.711 million. High needs funding support averages £8,456 per pupil, with provision currently in place for 1,230 pupils. 'Special Schools in borough' are projected to overspend by £3.969 million, with a projected spend of £24.097m against a £20.128m budget. This reflects increased complexity and resource intensity.
There is underspending in 'Mainstream Out of borough' due to lower-than-expected placement numbers or shorter support durations. The underspending in 'NMISS' (Non-Maintained and Independent Schools) suggests some moderation in growth or increased use of local alternatives. Spend is projected at £5.553m, slightly under the £6.000m budget by £0.447m. There is no specific reason given for the underspending in 'FE Colleges'.
94 pupils receive personal travel budgets, averaging £5,025. Projected spend is £0.472m, which is £0.122m above the £0.350m budget.
According to the High Needs Funding Working Group and High Needs Block Updates report, Redbridge continues to face increasing financial pressures within the High Needs Block. A £5.143m in-year deficit was projected for 2025/26, which will add to the existing cumulative deficit of £0.747m, resulting in an anticipated total cumulative High Needs deficit of £5.889m by the end of 2025/26.