Issue

Dedicated Schools Grant (DSG)

28 stories · discussed at 23 council meetings · 25 councils

Councils are currently addressing significant Dedicated Schools Grant deficits, largely due to rising Special Educational Needs and Disabilities costs, with some expecting a government stability grant.

Kingston Council is currently addressing a cumulative Dedicated Schools Grant (DSG) deficit of £20.5 million, as revealed at a Schools Forum meeting in September 2026. This follows Greenwich Council reporting an £18.1 million DSG overspend in September 2026, primarily due to pressures in the High Needs Block. Haringey Council also faces a net DSG forecast overspend of £8.4 million, mainly related to the High Needs Block, according to a finance update report in September 2026.

Several councils are grappling with significant DSG deficits, largely driven by increasing demand and costs for Special Educational Needs and Disabilities (SEND) provision. Havering Council faces an estimated £45 million DSG overspend, concentrated in the High Needs Block, as reported to its Cabinet in September 2026. Kensington and Chelsea's Schools' Forum received an update in June 2026 on a worsening DSG deficit of £4.088 million.

A proposed government stability grant is expected to write off 90% of DSG deficits as at March 31, 2026, which Kingston Council anticipates will reduce its deficit to £16.9 million. Kensington and Chelsea also expects a new High Needs Stability Grant to cover approximately £3.7 million of its deficit. The Dedicated Schools Grant is a government grant provided to local authorities to fund schools, including specific allocations for high needs provision.

Key facts

  1. Kingston Council's cumulative Dedicated Schools Grant deficit is £20.5 million. Source
  2. Greenwich Council faces an £18.1 million Dedicated Schools Grant overspend, primarily in the High Needs Block. Source
  3. Havering Council faces an estimated £45 million overspend in its Dedicated Schools Grant, concentrated in the High Needs Block. Source
  4. A proposed stability grant is intended to write off 90% of Dedicated Schools Grant deficits as at 31st March 2026. Source
  5. Hammersmith and Fulham Council confirmed a Dedicated Schools Grant of £127.775 million for its schools for the 2026/27 financial year. 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.

Latest stories

  1. Kingston SEND Deficit Soars to £20.5 Million Amidst National Pressures Kingston Council is grappling with a substantial financial deficit in its Special Educational Needs and Disabilities (SEND) services, with the cumulative shortfall on the... Kingston upon Thames 30 September 2026
  2. Greenwich Council faces £18.1m schools funding shortfall Greenwich Council faces a significant funding shortfall of £18.1 million for its schools, primarily driven by pressures within the High Needs Block. Greenwich 27 September 2026
  3. Bromley Council Projects £4.5 Million Overspend Amidst Social Care and Investment Property Pressures Bromley Council is facing a projected £4.5 million overspend for the 2026-2027 financial year, according to budget monitoring data presented to the Executive. Bromley 20 September 2026
  4. Haringey Council Faces £21.7 Million Budget Shortfall Due to Increased Demand and Funding Gaps Haringey Council is facing a projected budget shortfall of £21.7 million for the current financial year, according to a finance update report presented to the Cabinet. Haringey 19 September 2026
  5. Newham Council Faces £6.17m Budget Overspend Newham Council is facing a projected budget overspend of £6.17 million for the current financial year, according to the Quarter One budget monitoring report presented to the... Newham 19 September 2026
  6. Kingston Council's SEND Futures Plan Sees Improved Review Times and Reduced Waiting Lists Kingston Council's SEND Futures Plan is showing promising results, with a significant increase in the timeliness of annual reviews for children with Special Educational Needs... Kingston upon Thames 19 September 2026
  7. Havering Council Faces £45m Overspend in Dedicated Schools Grant Havering Council is grappling with a significant financial challenge, facing an estimated £45 million overspend in its Dedicated Schools Grant (DSG). This substantial deficit is... Havering 18 September 2026
  8. Hounslow Council Forecasts £2.8m Overspend Driven by Social Services Pressures Hounslow Council is forecasting a £2.8 million overspend for the current financial year, primarily driven by significant pressures within Children and Adult Services. The... Hounslow 9 September 2026