Ministers approved Dorset's SEND plan, so the government will pay 90% of the eligible high needs deficit. The schools fund was £148.8m in the red in March.
Ministers have approved Dorset Council’s plan for children with special educational needs and disabilities (SEND). The approval unlocks a government grant that will wipe out 90% of the council’s eligible high needs deficit.
The council announced the approval in a news release on 7 October. The release does not say how much money Dorset will get. The council’s own finance papers show how big the hole is.
The size of the deficit
Dorset’s Dedicated Schools Grant (DSG) ended 2025 to 2026 £148.8m in deficit. That figure is in the DSG outturn report taken to the Schools’ Forum on 3 July. Its Appendix A sets out how it got there:
- deficit at 1 April 2025: £95,629,948
- overspend in 2025 to 2026: £54,451,869
- less a 0.5% transfer from the schools block reserve: £1,313,318
- deficit at 31 March 2026: £148,768,499
The overspend is all in the high needs block, which pays for SEND support. That block was allocated £60.2m and overspent by £55.2m. The report says the year before, 2024 to 2025, the high needs overspend was £38.2m.
What the grant covers
The government set out the High Needs Stability Grant on 9 February. Its explanatory note says:
- it covers 90% of the eligible deficit held at 31 March 2026
- spending that is not eligible is taken out before the 90% is worked out
- it is only paid once the council’s Local SEND Reform Plan is approved
- payments start in the autumn and fall in the 2026 to 2027 financial year
- the remaining 10% “will fall to local authorities to cover”
So the grant will be worth less than 90% of £148.8m. If every pound of the deficit counted, it would be about £133.9m and Dorset would be left with about £14.9m. The government decides what is eligible, and neither it nor the council has published Dorset’s figure.
The council submitted its plan on 19 June, according to the Schools’ Forum minutes. Officers told the forum a decision was expected in September and promised to bring it back “as soon as possible”.
Why it matters beyond schools
The deficit is kept off the council’s main budget by a legal override, which now runs to March 2028. But the outturn report says carrying it still costs council tax payers.
Holding a £148.8m deficit means the council has that much less cash. The report puts the interest lost at £4.9m a year, met from the general fund. That is “£4.9m which could otherwise be spent on local service delivery”, it says.
Why the bill keeps growing
The report blames the rise in children and young people who need an education, health and care plan (EHCP). Dorset had 4,944 at 31 March 2026. That was 539 more than a year earlier, the biggest yearly rise of the last four.
About 40% of children with a plan are in specialist provision, the report says.
The grant clears money already spent. It does nothing on its own to stop new overspending from April 2026, which is what the plan itself has to tackle.
What the plan says it will change
The council’s release gives the aims, not the detail. It says the plan should mean:
- needs are spotted earlier
- families can get help “without facing unnecessary delays or complexity”
- more children are supported “as close to home as possible”
- better preparation for adulthood, work and independent living
Councillor Clare Sutton, Cabinet member for children, families and education, said: “We know that some families have had difficult experiences of the SEND system, and we recognise the concerns many people have.”
The release does not link to the approved plan itself.
What it means for you
- If your child has an EHCP or is waiting for one, nothing changes overnight. The release announces no change to individual plans. The council says it will keep working with families and parent carer groups as the programme develops.
- If you pay council tax in Dorset, clearing most of the deficit should remove most of the £4.9m a year the council says it loses in interest.
- If you work in a Dorset school, the Schools’ Forum meets next on Friday 6 November at 12.30pm. Officers promised to report the grant there. Papers appear on the forum’s meetings page before the meeting.
We will report the grant figure when it is published. For other council money stories, see our Dorset council tax bands page.
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