High Need Stability Grant
Merton Council is addressing its Dedicated Schools Grant High Needs budget deficit, with the High Needs Stability Grant expected to cover a substantial portion.
In July 2026, Merton Council reported that its Dedicated Schools Grant (DSG) High Needs budget remained in deficit for the 2025/26 financial year. However, government funding through the High Needs Stability Grant, a grant designed to help local authorities manage deficits in their High Needs Block, is expected to address a substantial portion of this deficit.
A statutory override, introduced by the government and extended until March 2028, separates DSG deficits from broader council finances, providing an accounting solution. This comes as Merton Council faces a projected budget gap of £9.694 million by the 2027/28 financial year, as highlighted in July 2026.
Key facts
- Merton Council's Dedicated Schools Grant (DSG) High Needs budget remained in deficit for the 2025/26 financial year. Source
- Government funding through the High Needs Stability Grant is expected to address a substantial portion of Merton's High Needs budget deficit. Source
- The government has extended a statutory override until March 2028 to separate DSG deficits from broader council finances. Source
- Merton Council faces a projected budget gap of £9.694 million by the 2027/28 financial year. Source
- This budget gap was highlighted during a Merton Cabinet meeting on July 13, 2026. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 30 September 2026. Spotted a mistake? Email community@opencouncil.network.