Question to the Department for Education:

To ask the Secretary of State for Education, what steps he is taking to ensure the viability of upper tier authorities charged with supporting the needs of high needs pupils.

Following the additional funding increases announced in the Chancellor’s recent Autumn Statement, local authorities’ high needs funding will be rising to £10.1 billion in 2023/24, an increase of over 50% from the 2019/20 allocations. This extra funding will help local authorities and schools with the increasing costs of supporting children and young people with special educational needs and disabilities.

The department recognises that a number of local authorities have struggled to manage their high needs systems sustainably in recent years, and have accrued Dedicated Schools Grant (DSG) deficits as a result. Following investment through the Spending Review 2021, the department is running three programmes aimed at helping local authorities with the financial sustainability of their high needs systems., Support and intervention is tailored to the severity of the problems authorities are facing. Those with the highest percentage DSG deficits have been invited to the Safety Valve intervention programme. Those with substantial, but less severe deficits, have been invited to join the Delivering Better Value (DBV) programme. Other local authorities are being contacted by the Education and Skills Funding Association.

In 2020, the government also introduced a statutory override which separates local authorities’ DSG deficits from their wider financial position. The statutory override was put in place for a period of three years, up to March 2023, and meant that local authorities’ DSG deficits could be separated from their wider accounts.

The Department for Levelling Up, Housing and Communities understand that a decision on the DSG statutory override needs to be communicated to the sector as soon as possible to provide certainty for the next – and future - financial years. An announcement will be made shortly.