PARLIAMENTARY WRITTEN QUESTION
Special Educational Needs: Finance (4 October 2024)

The department recognises that many local authorities are facing challenges in managing their high needs budgets, which has impacted their ability to balance their Dedicated Schools Grant (DSG) funding.

This government’s ambition is that all children and young people with special educational needs and disabilities (SEND) or in alternative provision receive the right support to succeed in their education and as they move into adult life. We will work with the sector as essential and valued partners to deliver our shared mission and restore parents’ trust, including considering how we can help councils manage the impacts of DSG deficits on their finances.

The department has taken action to help those authorities with deficits and will continue to do so. It has published guidance on good practice and provided help and advice through direct contact with all those authorities that have deficits. High needs deficit intervention programmes are designed to improve SEND services by making the very best use of resources to deliver the support that children and young people need. Where additional support is required in a local area, particularly following an Area SEND Inspection, the department commissions specialist SEND Advisors and Commissioners to support local authorities to build on existing strengths and address areas of weakness in local provision.

The Ministry of Housing, Communities and Local Government has made regulations which ring-fence DSG deficits from councils’ wider financial positions in their statutory accounts. This is a temporary accounting measure, currently in operation to March 2026, and it is still crucial that local authorities’ high needs systems move to a more sustainable position in the near future.

Budgets for the 2025/26 financial year will be set in the forthcoming Spending Review.