Rising SEND demand puts pressure on Portsmouth schools budget
Portsmouth’s budget for pupils with special educational needs faces a £4.7m deficit, as education leaders warn of a national “vicious circle” in SEND funding.
The Schools Forum heard an update on the growing strain within the High Needs Block (HNB) of the Dedicated Schools Grant (DSG).
The report by Kate Reynolds, Portsmouth City Council’s interim deputy director of education, follows June’s paper on managing SEND demand and funding pressures.
Portsmouth’s High Needs Block, part of the ring-fenced DSG, faces a estimated deficit of £4.7m, caused by rising numbers and complexity of Education, Health and Care Plans (EHCPs) which outline support for pupils in need.
The report said that if the £4.7m deficit continues into next year, the council could see a £1.7m surplus, but rising pupil numbers and needs mean a deficit is more likely by the end of 2026/27.
Nationally, the Local Government Association described a “‘vicious circle’ whereby reduced spending on early intervention leads to a greater demand for EHCPs “which then reduces spending on early intervention and so on and so on”.
Over half of councils expect to be unable to balance their budgets by 2026/27. The Institute for Fiscal Studies found that while high needs funding has risen by 59 per cent since 2015/16, “per-EHCP funding has fallen by around a third in real terms.”
In Portsmouth, pupil numbers with EHCPs are expected to grow by 755 by 2031, adding at least £1m in costs if current trends continue.
A Schools Forum workshop will be held in November to discuss options, with proposals due in December.
Sean Preston, CFO of Hamwic Education Trust, said: “It’s important to always note that Portsmouth is in a really strong position despite the pressures.
“A lot of local authorities out there are under tremendous financial pressure.”
However, he warned that Local Government Reorganisation (LGR) could affect SEND budgets, and the council admitted it has “no full understanding” yet of how deficits will be shared.
LGR would see Portsmouth potentially joining with Fareham, Gosport and Havant to create a larger authority. Education funding to these boroughs are allocated by Hampshire County Council which projected a £82.5 million overspend within the High Needs Block.