Dedicated Schools Grant: Special Educational Needs
The question
To ask the Secretary of State for Housing, Communities and Local Government, how will councils be expected to finance the remaining 10% cumulative Dedicated Schools Grant SEND deficit.
Answered by Alison McGovern
The Dedicated Schools Grant (DSG) Statutory Override will remain in place until the end of 2027-28. While it remains in effect, all DSG deficits including any proportion of the historic deficit up to 2025-26 not covered by grant (“the residual deficit”) will remain in the associated statutory reserve (“the unusable reserve”) and will not affect local authorities’ wider financial positions. The DSG Statutory Override will end on 31 March 2028. Therefore, local authorities will need to plan to be able to meet the cost of the residual deficit from their own resources in 2028-29, including setting aside appropriate reserves in the preceding years.
The Government recognises that some local authorities will continue to have concerns about the pressures of their DSG deficits and the sufficiency of a 90% grant. The Government committed as part of the publication of the Final Local Government Finance Settlement that it would work with local authorities with these challenges, as part of supporting the development of Local SEND Reform Plans.
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