Law or policy

Dedicated Schools Grant (DSG)

21 stories · discussed at 13 council meetings · 17 councils

Councils are grappling with significant Dedicated Schools Grant deficits, primarily driven by increasing costs for Special Educational Needs and Disabilities provision.

Redbridge Council is facing a projected overspend of £17.352 million on its Dedicated Schools Grant (DSG) for 2026/27, mainly due to rising demand for Special Educational Needs and Disabilities (SEND) provision, as reported to Cabinet in September 2026. Similarly, Richmond's SEND provision is forecast to have a £10.6 million deficit this year, with the DSG projected to overspend by £10.677 million, according to a report to the Education and Children's Services Committee in September 2026.

Other councils are also addressing DSG pressures. Harrow Council has reported a £3 million revenue underspend for 2025/26, which will be allocated to the business risk reserve to help fund the dedicated schools grant (DSG) deficit, as detailed in the final revenue outturn report presented to Cabinet in July 2026. Hammersmith and Fulham's Schools Forum considered transferring 1% from the Schools Block to the High Needs Block for 2026/27 in December 2025 to support SEND. Ealing Council approved new Specialist Resourced Provisions for SEN pupils in July 2026.

The Dedicated Schools Grant (DSG) is a ring-fenced grant from central government to local authorities to fund schools and early years education. Haringey schools will face a 0% funding increase for the 2026-27 academic year, as approved by the Cabinet Member for Children, Schools & Families in January 2026. Greenwich Council's Schools Forum is scheduled to discuss the topic further in October 2026.

Key facts

  1. Redbridge Council is facing a projected overspend of £17.352 million on its Dedicated Schools Grant for 2026/27. Source
  2. Richmond's Dedicated Schools Grant is forecast to overspend by £10.677 million this year. Source
  3. Harrow Council has reported a £3 million revenue underspend for 2025/26, which will be allocated to fund its Dedicated Schools Grant deficit. Source
  4. Ealing Council approved plans to establish new Specialist Resourced Provisions at two schools in July 2026. Source
  5. Haringey schools will face a 0% funding increase for the 2026-27 academic 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. Sutton faces £12m schools funding deficit Sutton Council is grappling with a significant £12m deficit in its dedicated schools grant (DSG), which funds education-related services. The shortfall was revealed during a... Sutton 10 December 2025
  2. Enfield Schools Face £4.4M Overspend on SEND Provisions, Contributing to £21.9M Deficit Enfield schools are grappling with a significant financial strain, primarily driven by increasing demands and costs associated with Special Educational Needs and Disabilities... Enfield 7 December 2025
  3. Greenwich Council Faces £7.2M Overspend and £7.4M DSG Deficit; Debt Levels Defended Greenwich Council is facing financial headwinds, including a projected £7.2 million overspend and a £7.4 million deficit in its Dedicated Schools Grant (DSG), according to a... Greenwich 5 December 2025
  4. Richmond Schools Face £5M Budget Shortfall Due to High Needs Underfunding and Rising EHCP Costs Richmond schools are facing a significant financial challenge, with a projected £5 million budget shortfall for the 2025/26 financial year. Funding continues to be a challenge... Richmond upon Thames 24 November 2025
  5. Richmond Council Faces £5M Education Overspend Richmond Council is facing financial strain in its education budget, with forecasts indicating a £5 million overspend in the Dedicated Schools Grant (DSG), leading to a... Richmond upon Thames 17 November 2025
  6. Hillingdon Schools Face £12.5M Deficit Due to SEND Costs Hillingdon schools are facing a significant financial challenge as the Dedicated Schools Grant (DSG) forecasts a £12.5 million deficit. This shortfall is primarily driven by the... Hillingdon 17 November 2025
  7. Lewisham Council Faces £2.5 Million Overspend in Special Needs Education Funding Lewisham Council is grappling with a projected £2.5 million overspend in its dedicated schools grant (DSG), specifically within the high needs block. This financial strain... Lewisham 19 September 2025
  8. Hillingdon sees improvement in SEND support, lowers EHCP growth Hillingdon has seen a significant improvement in its support for children with Special Educational Needs and Disabilities (SEND), according to a recent update presented to the... Hillingdon 3 August 2025