(UK) Bedford: "High Needs Block" will cost $57M next year; deficit to continue despite more funding

Jan 14, 2026, Bedford Today: Bedford council budget for special educational needs set to remain in deficit despite funding 'boost'

https://www.bedfordtoday.co.uk/news/politics/council/bedford-council-budget-for-special-educational-needs-set-to-remain-in-deficit-despite-funding-boost-5475641#

Bedford Borough Council’s budget for children with special educational needs and disabilities (SEND) is forecast to remain in deficit next year, despite a headline increase in government funding.

A report presented to the Bedford Schools’ Forum (Monday, January 12) shows the High Needs Block of the Dedicated Schools Grant will rise to £42.273 million [$57M] in 2026/27.

However, once funding for academy and specialist school places is deducted, the council will have £33.083 million [$44M] available to spend locally.

But forum members were warned the funding rise will not keep pace with growing demand.

Chris Morris, service director for education, SEND and schools infrastructure, said. “If we take the anticipated growth to next year’s high needs budget, based on forecast, based on previous years, then the anticipated growth is somewhere around £2.3 million [$3M], which is already higher than the £2.1 million [$2.8M] of increased funding that we’ll be receiving.”

He added that even the reported funding increase is smaller than it appears: “That £2.126 million [$2.8M] of additional funding in real terms is actually £562,000 [$752K] more funding.

“To put it another way, 1 per cent, and that is before any expected growth.”

The High Needs budget is already forecast to overspend by £1.729 million [$2.132M]  in the current financial year, according to the report presented to the Forum.

Mr Morris said: “We would definitely be having to set a deficit budget for next year

“The challenge would then be how big a deficit we are looking at setting for next year.

“We’re not looking at reducing the direct support for children or young people who need it, and what was set out in EHCP [Education, Health and Care Plan].

“That is absolutely clear.”

Mr Morris added that conversations around levels of increases of top-up funding, including if it is possible to increase that in line with inflation.

“And if we don’t, what would be the impact,” he said.

The report warned this creates “a challenge of achieving financial sustainability within the High Needs Block”, with further budget odeling underway and a High Needs budget, alongside a deficit recovery plan, due to be presented to the Schools’ Forum next month.