Redbridge Council is facing a projected overspend of £17.352 million on its Dedicated Schools Grant (DSG), primarily driven by increasing demand and complexity of needs for children with Special Educational Needs and Disabilities (SEND).

The significant overspend, detailed in the Budgetary Control Report for Quarter 1 of the 2026/27 financial year, was presented to the Council's Cabinet on Thursday, September 17, 2026. Councillor Vanisha Solanki, Cabinet Member for Finance and Shared Prosperity, highlighted the pressures within the High Needs Block of the DSG, which accounts for the majority of the deficit.

Quarter 1 Revised Forecast v Budget
A bar chart comparing the Quarter 1 revised budget forecast against the actual budget for various council departments, highlighting financial performance.

This overspend is attributed to a rise in Education, Health Care Plans (EHCPs), an increase in placement numbers, and escalating costs associated with the complexity of needs. Specifically, the High Needs Block is forecasting an overspend of £17.352 million on a total budget of £68.665 million. This is driven by an increase in the number of EHCPs exceeding local capacity, a rise in placement numbers, and increased placement costs due to the complexity of need. Providers are also experiencing higher staffing costs due to changes in employer National Insurance Contributions and wider inflationary impacts, contributing to increased expenditure on specialist placements, top-up funding, and associated SEND support services.

Pupils with an EHCP in Year 7 to Year 11
A bar chart showing the increase in pupils with an EHCP in Year 7 to Year 11 from 2022 to 2026, with a projected 37% increase between January 2022 and May 2026.

While the Schools Block and Central Schools Services Block are forecasting balanced positions, the Early Years Block is also projected to be balanced. However, the cumulative deficit in the DSG reserve is expected to reach £26.487 million by the end of the 2026/27 financial year. The DSG reserve brought forward on April 1, 2026, was a deficit of £9.134 million, which, with the forecasted in-year deficit, will result in this cumulative deficit balance.

The Cabinet was recommended to note the DSG forecast outturn and the projected deficit. The report also highlighted that the total quantum of DSG funding is not static and can change mid-year based on Department for Education criteria. Reporting will be updated when such changes occur.

The report can be found in the Public reports pack here.