Schools funding deficit deepens as Norfolk approves DSG budget
Norfolk County Council has approved its Dedicated Schools Grant budget for 2026-27, including funding for children with special educational needs. Councillors noted that the budget will add to an existing cumulative deficit in the schools grant fund.
Norfolk County Council approved its Dedicated Schools Grant (DSG) budget for 2026-27 at its annual budget meeting on 17 February 2026.
The DSG is ring-fenced government funding for schools, including a High Needs Block which pays for support for children with special educational needs and disabilities (SEND). The council confirmed the budget meets its legal duties to provide these services.
However, councillors noted that spending will again exceed the grant received, adding further to the council's cumulative DSG deficit. The council is currently protected from this deficit affecting its general finances by a government measure known as a statutory override, which keeps DSG deficits separate from a council's main accounts. That protection is currently in place until the end of 2027-28.
What happens after the statutory override expires has not been confirmed by the government, meaning the growing deficit remains a financial risk for the council beyond 2028.
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