The local authority is required to have a Designated Schools Grant (DSG) Management Plan. The overall schools’ budget has overspent by approximately £1.2m which is mainly due to pressure in the High Needs Block. The local authority is working with Local Leaders in Education and Local Area Leaders to manage the High Needs Funding Block. The Department for Education (DfE) expects that most local authorities with a Designated Schools Grant (DSG) deficit will be able to bring their high needs budget into in-year balance, and go on to recover the deficit by managing their expenditure within the larger DSG total. The Department will work with the local authority to help them do this. The Department will agree a plan of action with the LA to enable it to pay off its deficit over time. The plan will include appropriate additional conditions of grant designed to secure the most efficient use of resources. These would depend on the situation and context, but could include – for example – changes to local SEND policy or practice, management change or sign off of budget plans by the Department.

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