Source · Select Committees · Housing, Communities and Local Government Committee

Recommendation 30

30 Deferred

Eliminate local authority DSG deficits by 2028 and develop approach for historical shortfalls

Recommendation
The Government’s upcoming reforms to the Special Educational Needs and Disabilities (SEND) system must be bold enough to eliminate local authorities’ deficits on the DSG going forwards before March 2028, while ensuring SEND children receive the support they need. The Ministry must commit not to extend the statutory override further beyond 2028. The 77 Ministry must also develop an approach to address historical cumulative DSG deficits, and to support local authorities handle them when the statutory override ends in 2028. (Recommendation, Paragraph 111)
Government Response Summary
The government acknowledges DSG deficits and confirms funding for SEND reform, with a White Paper expected soon. It states the statutory override is extended to 2027-28 and promises more detail and a plan for supporting local authorities with historic and accruing deficits in the coming months.
Government Response Deferred
HM Government Deferred
The Government recognises the pressures local authorities are facing because of their Dedicated School Grant deficits. The Department for Education Spending Review settlement confirmed funding for reform of the current Special Education Needs and Disabilities (SEND) system, details of which will be set out in a White Paper in the coming months. The Government recognises that local authorities will need continued support during the transition to a reformed SEND system. This will include working with local authorities to manage their SEND system, including deficits, alongside the extension to the Dedicated Schools Grant Statutory Override, which is now due to expire at the end of 2027–28. The Government will provide more detail in the coming months, including a plan for supporting local authorities with both historic and accruing deficits. We will set out more detail at the provisional LGFS.