Cheshire East Council's Special Educational Needs Deficit May Be Reduced
Cheshire East Council could potentially see a significant reduction in its £156.6 million special educational needs deficit due to anticipated government support in October.
By Nantwich News
Cheshire East Council's overspend on its Dedicated Schools Grant (DSG) was reported at £156.596 million at the end of the 2025/26 financial year. The council's financial situation regarding special educational needs and disabilities (SEND) has been recorded as a negative reserve, which does not appear on the main budget lines.
The government has indicated that it may cover up to 90% of historic SEND deficits, contingent upon councils submitting an approved SEND reform plan to the Department for Education. If this support is realised, Cheshire East Council estimates that it would be left with approximately £15 million to manage.
Ashley Hughes, Executive Director of Resources at Cheshire East Council, stated, "It is up to 90 per cent" regarding the potential government coverage of the deficit. He added, "The government will, most likely because of our position, move us into the 90 per cent number." If the payment is approved, it is expected to be due in October 2026. Hughes also noted that if the plan is not accepted, there would be another opportunity for approval before Parliament rises for Christmas, with a potential payment in January 2027.
Cheshire East Council's final outturn for 2025/26 showed a net overspend of £18.5 million, which has reduced its reliance on Exceptional Financial Support. The council has incorporated £25 million in Exceptional Financial Support into its 2026/27 budget, which allows it to borrow or use income from asset sales to address the funding gap.
The council's financial updates highlight the ongoing challenges related to SEND funding, while the anticipated government support could significantly alleviate the current deficit.