Dedicated Schools Grant (DSG)
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
- Kingston Council's cumulative Dedicated Schools Grant deficit is £20.5 million. Source
- Greenwich Council faces an £18.1 million Dedicated Schools Grant overspend, primarily in the High Needs Block. Source
- Havering Council faces an estimated £45 million overspend in its Dedicated Schools Grant, concentrated in the High Needs Block. Source
- A proposed stability grant is intended to write off 90% of Dedicated Schools Grant deficits as at 31st March 2026. Source
- 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.