Swindon's schools budget deficit grows after £3 million overspend

The budgets for schools in Swindon, and particularly for services to those pupils with additional needs were hugely overspent in the last financial year.

And the £3m cost overrun has been added to the growing deficit of Swindon’s Direct School’s Grant deficit, with is now £8.3m.

Teachers and school managers who are members of the Schools’ Forum convened by Swindon Borough Council heard from Dawn Sexstone, head of finance for children’s services at Euclid Street, that the Direct Schools Grant budget for Swindon in 2024-24 was £84.99m.

The overspend of £3.1m of that budget was 3.6 per cent of the total, and has been added to the deficit on the grant budget of £5.3m which had been run up over the last few years.

The largest element of the £84m total budget is the high needs block, which funds services for children with additional needs, at £39.3m

And an overspend on that block of the budget of £3.19m more than accounts for the deficit on the overall budget  of £3.1m.

Ms Sexstone explained that the real pressure on the high needs block budget came from ‘Top Ups’ in both mainstream and high needs schools, with several other parts of the budget actually being underspent or balanced.

She said: “The increase in top-up payments are linked to EHCPs, as the numbers increase or the complexity of needs increases then this will result in an increase in costs for high needs top ups.”

And in answer to a question from a forum member she said the ‘top ups’ were needed because of the increase in the number of children with education, health and care plans.

She said:” In January there were approximately 1672 ECHPs that are Swindon-based primary or secondary provision, of which 1152 or 69 per cent are in special provision.

“There are approximately 520 EHCPs for children in mainstream schools.”

But there is a significant growth in the number of children needing extra help: “At the end of May 2024, the number of EHCPs had grown to 2694, an increase of 5.1 per cent on the January numbers.

“Overall there has been an 11 per cent increase in EHCP numbers over the past year. This reflects the national picture of the increased number of EHCPs which is reporting 11 per cent increase.”

By law, the borough has to come up with a plan to cut its DSG deficit and balance the budget over the next three years and it cannot transfer any money from its general fund to cover the gap in the schools grant.