demand-led services
Councils are currently addressing significant financial pressures arising from demand-led services, particularly in social care and temporary accommodation.
Lambeth Council faced a £15.9 million General Fund overspend for the 2025/26 financial year, as revealed by its Quarter 4 Budget Monitoring Report in July 2026. This overspend was primarily attributed to sustained demand and increasing complexity of need within demand-led services, including adult and children's social care, and temporary accommodation.
Merton Council also reported significant financial pressures in July 2026, despite a £0.5 million revenue underspend for 2025/26. The council's outturn report highlighted surges in temporary accommodation costs and a deficit in the Dedicated Schools Grant High Needs budget, though government funding is expected to address much of the latter.
Key facts
- Merton Council reported a £0.5 million revenue underspend for the 2025/26 financial year in July 2026. Source
- Lambeth Council faced a £15.9 million General Fund overspend for 2025/26, reported in July 2026. Source
- Merton's outturn report highlighted significant pressures in temporary accommodation costs. Source
- Lambeth's overspend was attributed to demand-led services like social care and temporary accommodation. Source
- A government statutory override for Dedicated Schools Grant deficits is extended until March 2028. 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.