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.

Stories, page 2

  1. Brent Council Projects £18.3m Overspend in 2025-26 Due to Social Care and Homelessness Pressures Brent Council is facing a projected £18.3 million overspend for the 2025-26 financial year, primarily driven by significant pressures in adult social care and homelessness... Brent 29 July 2026
  2. Newham Council projects £5.9m budget overspend driven by social care and housing pressures Newham Council is facing a projected £5.9 million budget overspend for the 2026/27 financial year, according to the council's Month 2 budget monitoring report. The overspend is... Newham 25 July 2026
  3. Barnet Council faces £13.3m DSG deficit due to increased SEND demand Barnet Council is facing a projected deficit of £13.3 million in its Dedicated Schools Grant (DSG) for the current financial year, a report presented to the Finance and Growth... Barnet 22 July 2026
  4. Havering Council faces £32m SEND overspend Havering Council is grappling with a significant financial challenge, with its Dedicated Schools Grant (DSG) for children with Special Educational Needs and Disabilities (SEND)... Havering 10 July 2026
  5. Sutton Council's People Directorate Faces Significant Financial Pressures, Particularly in Adult Social Care and SEND Services Sutton Council's People Directorate is grappling with significant financial pressures, accounting for two-thirds of the council's overall budget. Adult Social Care alone... Sutton 20 June 2026
  6. SEND Reforms Face Funding and Workforce Challenges Amidst Growing Deficit Concerns over funding and workforce capacity are casting a shadow over the implementation of Special Educational Needs and Disabilities (SEND) reforms, according to discussions... Kensington and Chelsea 10 June 2026
  7. K&C Schools Face £4m Deficit in Dedicated Schools Grant Despite Rising School Balances Kensington and Chelsea schools are grappling with a significant financial deficit, with the Dedicated Schools Grant (DSG) reserve balance standing at over £4 million as of March... Kensington and Chelsea 10 June 2026
  8. Tower Hamlets Council Faces £18.6m Budget Overspend Driven by Social Care Demand Tower Hamlets Council is facing a projected budget overspend of £18.6 million for the financial year 2025-26, according to a report presented to the Overview & Scrutiny... Tower Hamlets 25 March 2026