Dedicated Schools Grant (DSG) deficit
Councils are addressing significant Dedicated Schools Grant deficits, with some not expecting to balance budgets until 2027-28.
Havering's Schools Funding Forum discussed the Dedicated Schools Grant (DSG) deficit in October 2025, reporting a £34.722 million deficit carried forward from 2024-25. Hillingdon Council also faced a cumulative DSG deficit of £65.6 million as of March 31, 2025, with plans to balance the schools budget not expected until 2027-28, as discussed in September 2025.
The Dedicated Schools Grant (DSG) deficit represents a financial shortfall in funding allocated for schools, identified as a significant weakness in some councils' financial management. This deficit, particularly within the High Needs Block, contributes to broader budget pressures for local authorities.
Key facts
- Havering's overall Dedicated Schools Grant deficit was £34.722 million carried forward from 2024-25, reported in October 2025. Source
- Hillingdon Council had a cumulative Dedicated Schools Grant deficit of £65.6 million as of March 31, 2025. Source
- Hillingdon Council plans to balance the schools budget are not expected until 2027-28. 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.