High needs funding and the schools budget deficit
Support for children with EHC plans is mostly paid for from the High Needs Block of the Dedicated Schools Grant (DSG), a ring-fenced government grant. Spending above the grant builds up as a DSG deficit. A government "statutory override" currently keeps that deficit off the council's main budget, until March 2028 (London Borough of Waltham Forest, Schools Forum report pack, 21 October 2026 (DSG forecast 2026-27; SENIF extension) (October 2026), p. 31).
| What | Figure | Detail | Source |
|---|---|---|---|
| Cumulative DSG deficit at 31 March 2026 (outturn) | £14.32m | Up £8.94m in the year. The High Needs Block deficit alone is £19.79m, partly offset by surpluses in the other blocks. (The February 2026 budget had forecast £14.8m.) | London Borough of Waltham Forest, Schools Forum report pack, 8 July 2026 (DSG outturn 2025-26; SEND Reform Plan) (July 2026), p. 10 |
| High Needs overspend 2025/26 | £10.91m | Against a planned overspend of £5.76m. The council says this includes a one-off reconciliation of historic payments to schools, as well as growth in EHC plans and alternative provision. | London Borough of Waltham Forest, Schools Forum report pack, 8 July 2026 (DSG outturn 2025-26; SEND Reform Plan) (July 2026), p. 11 |
| Forecast High Needs overspend 2026/27 (at July 2026) | £13.68m | Up £2.63m since the previous forecast, "due to the increasing number of Education & Health Care Plans (EHCP's) in mainstream settings". In March 2026 the budget assumed £10.34m. | London Borough of Waltham Forest, Schools Forum report pack, 21 October 2026 (DSG forecast 2026-27; SENIF extension) (October 2026), p. 29 |
| High Needs Stability Grant | £12.89m | Confirmed on 2 October 2026 after the DfE accepted the council's SEND Reform Plan. With the grant, the DSG deficit is forecast at £15.12m on 31 March 2027. | London Borough of Waltham Forest, Schools Forum report pack, 21 October 2026 (DSG forecast 2026-27; SENIF extension) (October 2026), 30 and 31 |
| High Needs Block allocation 2026/27 (gross) | £65.80m | Up from £62.38m in 2025/26. The council says this is "solely due to the rolling-in of existing grants", so funding has not risen in real terms. | London Borough of Waltham Forest, Schools and Early Years Budgets 2026/27 (March 2026), 2 and 8 |
| High Needs overspend 2024/25 | £3.82m | On a £58.5m budget, "mainly due to significant increases in spend across specialist settings, the highest being in INMSS" (independent and non-maintained special schools). SEND transport cost a further £5.25m. | London Borough of Waltham Forest, SEND Sufficiency Plan 2025-30 (in the Schools Forum pack, 10 December 2025) (December 2025), p. 58 |
| When the DSG first went into deficit | March 2021 | £942,000 net deficit, driven by the High Needs Block. | London Borough of Waltham Forest, Schools and Early Years Budgets 2026/27 (March 2026), p. 7 |
| DfE intervention programme | None | As of February 2026 the council was not in a DfE intervention programme (Safety Valve or Delivering Better Value). DfE officers were keeping its position under review. | London Borough of Waltham Forest, Budget and Council Tax Setting 2026/27 (February 2026), p. 33 |
| Main ways the council plans to bring spending down | Draft deficit management plan | "reducing the number of requests to assess children whose needs can be met outside the statutory framework; more cost-effective provision being commissioned locally and closer financial management; and improving the workforce capacity." | London Borough of Waltham Forest, Budget and Council Tax Setting 2026/27 (February 2026), p. 34 |
Why this matters for families. The council's draft deficit management plan relies on "reducing the number of requests to assess children whose needs can be met outside the statutory framework" (London Borough of Waltham Forest, Budget and Council Tax Setting 2026/27 (February 2026), p. 34). Families have a legal right to request an assessment. Any change in how requests are handled should show up in the request and refusal figures.
What the council spends on SEND services
Every council reports its education spending to the DfE line by line (the "section 251" return). These are Waltham Forest's net figures for the lines most relevant to SEND, in £ million. "Net" means after income, for example when schools buy educational psychology time.
| £ million, net | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Educational psychology service | 0.13 | 0.12 | 0.15 | 0.38 | 0.29 | 1.44 | 0.52 | 0.52 | 0.59 | 0.31 |
| SEN administration, assessment and coordination | 0.60 | 0.47 | 0.15 | 1.79 | 0.28 | 1.74 | 1.64 | 1.91 | 4.20 | 2.41 |
| Top-up funding for independent and non-maintained providers | 2.32 | 3.17 | 3.90 | 3.57 | 4.08 | 7.00 | 4.18 | 5.68 | 6.01 | 7.68 |
| SEN transport (under 16) | 2.67 | 2.37 | 0.00 | 2.73 | 2.64 | 2.76 | 3.10 | 3.61 | 4.99 | 4.91 |
| Top-up funding for maintained schools | 6.88 | 7.38 | 5.39 | 6.03 | 6.18 | 6.30 | 7.22 | 8.65 | 11.90 | 13.27 |
| Top-up funding for academies, free schools and colleges | 10.77 | 10.07 | 12.91 | 15.06 | 15.57 | 14.63 | 18.30 | 20.27 | 23.54 | 26.11 |
Big jumps from one year to the next can reflect changes in how the council codes its spending, not just real changes. For example, SEN transport shows £0 in 2017/18. Treat single years with care.
Source: DfE, LA and school expenditure: LA expenditure on schools, other education and community - unrounded data (downloaded 2026-10-25)
Compared with other councils
Spending per head, as calculated by the DfE, so councils of different sizes can be compared. The spending file only has totals for England and for Inner and Outer London, not London as a whole.
Educational psychology service: net spend per head
Net spending per head as published by the DfE. The population used depends on the budget line (pupils or children), so compare places on the same line, not different lines.
London boroughs, 2024/25
- 1Kensington and Chelsea
- 2Camden
- 3Merton
- 4Hackney
- 5Hammersmith and Fulham
- 6Enfield
- 7Wandsworth
- 8Haringey
- 9Havering
- 10Tower Hamlets
- 11Hounslow
- 12Southwark
- 13Lewisham
- 14Islington
- 15Bromley
- 16Greenwich
- 17Bexley
- 18Ealing
- 19Barnet
- 20Westminster
- 21Brent
- 22Harrow
- 23Lambeth
- 24Kingston upon Thames
- 25Richmond upon Thames
- 26Croydon
- 27Redbridge
- 28Newham
- 29Sutton
- 30Barking and Dagenham
- 31Hillingdon
- 32Waltham Forest
Show the numbers
| Area | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Waltham Forest | £3 | £3 | £3 | £9 | £7 | £33 | £12 | £12 | £13 | £7 |
| England | £13 | £13 | £12 | £12 | £13 | £14 | £15 | £17 | £20 | £24 |
The council blames slow EHC plans on delays in educational psychologist advice (see Assessments). In 2024/25, Waltham Forest's net spend per head on its educational psychology service was £7, joint 31st of 32 London boroughs (1st = highest). England: £24.
Source: DfE, LA and school expenditure: LA expenditure on schools, other education and community - unrounded data (downloaded 2026-10-25)
SEN administration, assessment and coordination: net spend per head
Net spending per head as published by the DfE. The population used depends on the budget line (pupils or children), so compare places on the same line, not different lines.
London boroughs, 2024/25
- 1Hammersmith and Fulham
- 2Wandsworth
- 3Camden
- 4Kingston upon Thames
- 5Richmond upon Thames
- 6Haringey
- 7Greenwich
- 8Merton
- 9Tower Hamlets
- 10Hounslow
- 11Southwark
- 12Lambeth
- 13Waltham Forest
- 14Havering
- 15Ealing
- 16Bromley
- 17Redbridge
- 18Westminster
- 19Kensington and Chelsea
- 20Enfield
- 21Hackney
- 22Harrow
- 23Lewisham
- 24Newham
- 25Islington
- 26Brent
- 27Bexley
- 28Sutton
- 29Barking and Dagenham
- 30Hillingdon
- 31Barnet
- 32Croydon
Show the numbers
| Area | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Waltham Forest | £14 | £11 | £4 | £41 | £6 | £40 | £38 | £44 | £95 | £55 |
| England | £14 | £15 | £16 | £17 | £20 | £22 | £26 | £33 | £42 | £48 |
Source: DfE, LA and school expenditure: LA expenditure on schools, other education and community - unrounded data (downloaded 2026-10-25)
Top-up funding for independent and non-maintained providers: net spend per head
Net spending per head as published by the DfE. The population used depends on the budget line (pupils or children), so compare places on the same line, not different lines.
London boroughs, 2024/25
- 1Merton
- 2Bromley
- 3Richmond upon Thames
- 4Kingston upon Thames
- 5Sutton
- 6Kensington and Chelsea
- 7Wandsworth
- 8Harrow
- 9Hackney
- 10Croydon
- 11Hammersmith and Fulham
- 12Lewisham
- 13Haringey
- 14Enfield
- 15Barking and Dagenham
- 16Ealing
- 17Southwark
- 18Westminster
- 19Greenwich
- 20Brent
- 21Hounslow
- 22Hillingdon
- 23Islington
- 24Barnet
- 25Bexley
- 26Camden
- 27Waltham Forest
- 28Lambeth
- 29Tower Hamlets
- 30Newham
- 31Redbridge
- 32Havering
Show the numbers
| Area | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Waltham Forest | £33 | £44 | £54 | £49 | £55 | £96 | £57 | £78 | £88 | £106 |
| England | £71 | £77 | £84 | £91 | £102 | £114 | £132 | £150 | £185 | £215 |
Source: DfE, LA and school expenditure: LA expenditure on schools, other education and community - unrounded data (downloaded 2026-10-25)
SEN transport (under 16): net spend per head
Net spending per head as published by the DfE. The population used depends on the budget line (pupils or children), so compare places on the same line, not different lines.
London boroughs, 2024/25
- 1Croydon
- 2Merton
- 3Brent
- 4Ealing
- 5Lewisham
- 6Tower Hamlets
- 7Bromley
- 8Islington
- 9Hammersmith and Fulham
- 10Wandsworth
- 11Hounslow
- 12Enfield
- 13Hillingdon
- 14Greenwich
- 15Bexley
- 16Lambeth
- 17Camden
- 18Hackney
- 19Havering
- 20Westminster
- 21Kingston upon Thames
- 22Richmond upon Thames
- 23Southwark
- 24Barnet
- 25Sutton
- 26Harrow
- 27Haringey
- 28Waltham Forest
- 29Kensington and Chelsea
- 30Redbridge
- 31Barking and Dagenham
- 32Newham
Show the numbers
| Area | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 2024/25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Waltham Forest | £63 | £55 | £0 | £62 | £60 | £63 | £71 | £82 | £113 | £112 |
| England | £70 | £76 | £78 | £83 | £93 | £92 | £111 | £138 | £168 | £190 |
Source: DfE, LA and school expenditure: LA expenditure on schools, other education and community - unrounded data (downloaded 2026-10-25)