Schools in Rotherham are set to receive almost £11 million more in funding next year, even as the council warns of mounting financial pressure from rising demand for special educational needs support.

Reports to the council’s schools forum show that the borough’s schools block allocation for 2026–27 will increase to £271.9 million, up £10.96 million on the current year, driven by higher national funding rates and changes to how government grants are distributed.

However, councillors and school leaders have also been told that the council is forecasting a £3.8 million cumulative deficit on its Dedicated Schools Grant (DSG) reserves, largely due to ongoing overspending on SEND provision.

The increase in funding relates to the schools block, which covers money allocated directly to schools for day-to-day running costs such as staffing and resources.

Councillors and school leaders have also been told that the council is forecasting a £3.8 million cumulative deficit on its Dedicated Schools Grant (DSG) reserves, largely due to ongoing overspending on SEND provision.

placeholder image — Councillors and school leaders have also been told that the council is forecasting a £3.8 million cumulative deficit on its Dedicated Schools Grant (DSG) reserves, largely due to ongoing overspending on SEND provision.

Under the national funding formula, per-pupil funding for 2026–27 has been set at £5,115 for primary pupils and £6,640 for secondary pupils, with most schools expected to see modest increases.

By contrast, the forecast deficit relates mainly to the high needs block, which funds support for children and young people with special educational needs and disabilities (SEND), including specialist placements.

Council officers say spending pressures are being driven by rising numbers of pupils with Education, Health and Care Plans (EHCPs), increasing costs in mainstream and special schools, and ongoing reliance on specialist and independent placements.

The high needs budget is currently forecast to overspend by £3.28 million in 2025–26, higher than the £2.5 million deficit previously agreed with government under the safety valve programme, which is due to end next year.

As a result, DSG reserves are expected to move into a £3.8 million deficit by the end of 2025–26. While councils are not allowed to cover DSG deficits from their general budgets, government has extended statutory protections allowing deficits to be carried forward until March 2028.

The Department for Education has asked Rotherham Council to submit a five-year financial plan setting out how it intends to manage SEND demand beyond the end of the Safety Valve agreement.

As part of next year’s funding arrangements, Schools Forum has approved a 0.5 per cent transfer, worth £1.35 million, from the schools block to the high needs block to help manage SEND pressures.

Council officers stressed that while schools funding is increasing overall, SEND demand continues to grow faster than available funding.

Work is under way on a long-term SEND sufficiency strategy, aimed at expanding local provision, supporting mainstream schools to meet a wider range of needs, and reducing reliance on costly out-of-area placements.