At a key meeting tonight, Wandsworth Council will confront the deepening financial crisis in its schools budget – a £21.2 million black hole that is projected to grow even further.
The Wandsworth Schools Forum, which brings together headteachers, governors and council officers, will meet at the Town Hall at 4.30pm to discuss how to rein in the soaring costs of support for children with special educational needs and disabilities (SEND). Most of the overspend lies in what’s known as the “High Needs Block” – a ring-fenced portion of government education funding meant to provide support for children with complex needs.
A new report [pdf] to the forum lays out the stark reality: demand for support is rising sharply, the cost of provision has ballooned, and Wandsworth’s Dedicated Schools Grant (DSG) deficit has tripled in just three years – from £4.6 million in 2021–22 to more than £21 million today.
Despite extra government funding, Wandsworth Council says the borough’s schools face “continued financial challenges due to rising demand and inflationary pressures.” And it’s not alone. Across London, local authorities are grappling with the same problem. Wandsworth ranks 13th out of 33 boroughs for the size of its DSG deficit – but officials warn that, without action, the gap could widen to more than £40 million by 2028.
Why it’s happening
Much of the pressure comes from a sharp rise in Education, Health and Care Plans (EHCPs) – legally binding documents that guarantee tailored support for children with additional needs. In Wandsworth, the number of children with EHCPs has grown by more than 750 in just five years. Around a quarter of those children are now placed in independent special schools, costing the council up to £47,000 per place – around £15,000 more than the average cost of a local maintained special school.
The council also faces rising tuition costs for children out of school, and is spending more on speech therapy, occupational therapy and other services. According to the latest figures, the borough spent £73.3 million last year on High Needs provision – nearly £11 million more than it was allocated by central government.
What the council plans to do
To stem the tide, Wandsworth has drawn up a range of cost-saving and “invest-to-save” proposals. These include:
- Expanding local special school and resource base provision so fewer children need to be placed in costly independent schools
- Creating an in-house tuition service to cut back on expensive external providers
- Reviewing therapy services to better coordinate support and reduce duplication
- Piloting early intervention schemes aimed at supporting children before they reach crisis point – and potentially reducing the need for EHCPs
Officials hope these measures will slow the growth of the deficit and improve outcomes for children at the same time. But there is no quick fix. A full DSG management plan is being developed and will need regular updates.
A wider issue
Wandsworth is far from alone. According to analysis by London Councils, the collective DSG deficit across the capital’s boroughs stood at £281 million last year – and is on course to reach £370 million by 2026. Some councils have signed up to “Safety Valve” agreements with the Department for Education, trading reform plans for extra cash. But Wandsworth is not currently part of that programme.
Instead, the borough is trying to resolve the problem through local reforms – a task that will demand tough decisions and close scrutiny in the months ahead.
The Schools Forum meeting tonight may not offer all the answers. But for those trying to protect vital support for children with additional needs – while keeping the borough’s school finances afloat – it marks the beginning of some urgent soul-searching.
