Dedicated Schools Grant

Sarah Dyke Excerpts

Tuesday 6th May 2025 Westminster Hall

[Sarah Dyke (Glastonbury and Somerton) (LD)]

It is a pleasure to speak in this important debate and to serve with you in the Chair, Ms Butler. I congratulate my hon. Friend the Member for Tewkesbury (Cameron Thomas) on securing the debate and on his powerful speech. I alert Members to my position as one of the vice chairs of the f40 group, which represents 43 local authorities with historically low funding for education and campaigns for fairer funding for schools and SEND provision.

Somerset is one of those 43 councils. Its 2025-26 dedicated schools grant allocation is just £8,500 per student, while some councils get nearly £5,000 more than that per pupil. The launch in 2018 of the national funding formula for mainstream schools introduced a minimum per pupil funding level, which was designed to level up funding. However, that has continued to lock in historical funding elements, preventing some local authority areas from receiving more funding. The Liberal Democrats understand the need for regional variation to ensure that schools can operate successfully, but that should not come at the expense of schools elsewhere, which often struggle to make ends meet.

As other Members have stated, the DSG is made up of four blocks, one of which is the high needs block, which supports SEND provision for children in both mainstream and specialist schools. Somerset’s 2025-2026 allocation of high-needs block funding is £1,250 per student—more than £2,000 less than the highest-funded local authority. It has been stressed many times that the SEND system is broken; the variance and unequal DSG funding is a big reason for that. My inbox, like that of many other Members, is full of correspondence from parents who all desperately want the best education for their children, but are concerned and deeply upset that their children’s needs are not being met by their schools.

[Tom Gordon (Harrogate and Knaresborough) (LD)]

My area of Harrogate and Knaresborough is covered by North Yorkshire council, which is part of f40, which my hon. Friend mentioned. On high-needs funding, we are 146th out of 151. That is causing real challenges in that rural setting, with children sometimes having to travel for hours to get to school. Does my hon. Friend share my concerns about those low levels of funding, which are compounded by the cut to the rural services delivery grant that local authorities receive?

[Sarah Dyke]

I will touch on that. Delivering education in a huge rural county has so many pressures and complexities and my hon. Friend is absolutely right to bring that up.

Let me give a couple of examples of children who are suffering and whose educational needs are not being met in my constituency of Glastonbury and Somerton. One of them is Jensen from Ilchester. He is only seven years old, but has been experiencing severe mental health distress while awaiting a long overdue neurodevelopmental assessment. His mother told me that he has lost all enjoyment in life. He misses his education and his friends, and all the while he is being passed between services. Jensen is not alone in that situation.

Many other children in Glastonbury and Somerton face similar challenges: Charlie from Castle Cary, for example. He has an EHCP, but his school is simply not able to meet his needs. His mother said that he has been left for months without his educational needs, as specified in his EHCP, being met. As a result, his behaviour at school and his mental health are declining. The differential in DSG funding means that children like Jensen, Charlie and many others heartbreakingly cannot get the support that they deserve. Families are being left to suffer alone, fighting a system that is just not working for them.

We know that the system is broken. The Isos report released last year found that all actors within the system are behaving rationally—schools, councils and parents—but the system is just not up to scratch. The funding model needs to be reformed to make it more responsive to changes so that individual schools can receive funding based on need. I urge the Minister to consider reviewing the funding formulas for both schools and high needs.

The Liberal Democrats have a plan to invest in our education sector above the rate of inflation so that we can ensure that all schools have the capacity to operate sustainably. We must also give our local authorities the financial support that they need. The previous Conservative Government left schools to crumble and forced councils to do more with less, impacting our children’s education. The persistent budgetary strain does not allow local authorities to create long-term plans for children with SEND, so we would also set up a dedicated national body for SEND to act as a champion for children with complex needs and ensure that they receive tailored support.

Without major reforms and changes to funding, we will continue to see a landscape with uneven funding where children are badly let down and schools cannot provide the support that is needed. I urge the Minister to take action, invest in education, invest in our children and invest in our future.

--- Later in debate ---

[Catherine McKinnell]

The hon. Gentleman makes his point well.

As a Government, we are determined that local authorities will be able to deliver those high-quality services for children and young people with special educational needs and disabilities, but in a financially sustainable way. Those two elements go hand in hand to create a stronger and more prosperous future for children and families. Many hon. Members have spoken about their constituents’ experiences, and we recognise that too many families and children are not experiencing the quality of SEND services and provision that they should expect, and that the rising cost of SEND provision is putting a significant strain on both local authority and school finances.

[Sarah Dyke]

The Minister describes the additional funding but, as I have explained, many parents and children are suffering with severe mental health issues; it is heartbreaking to see. The Liberal Democrats want to provide a dedicated mental health professional in every school, so that every child and parent has somebody to turn to when they need it. What steps are the Government putting in place to support parents and children who are facing mental health challenges?

[Catherine McKinnell]

The hon. Lady identifies an important issue. Yes, we have a big challenge in relation to special educational needs and disabilities, but we also face much wider challenges relating to young people’s mental health right across our school system. The Government are committed to ensuring that we have mental health professionals in every school and community so that children and families can get that support, whether it be within a school setting or outside if that is where they want to access it.

Hon. Members will appreciate that the spending review is ongoing. It is due to conclude in June, but our objective is to ensure that local authorities, schools and colleges can deliver high-quality services for children and young people with SEND. We will set out in more detail how local authorities will deal with their historical deficits as part of that consideration.

I again thank the hon. Member for Tewkesbury for bringing this matter forward, and all those who contributed to what has been a very thoughtful debate. I think there is a large amount of consensus on what we want to achieve for children and young people: getting the best outcomes from our dedicated schools grant. The Government have made clear our commitment to addressing the challenges as part of supporting children and young people to achieve and thrive. I am determined that progress will be made.

I want to give my final word of thanks to all those who work in our school system in the interests of our children and young people, in Gloucestershire and across the country. Indeed, I realise I meant to come back to my hon. Friend the Member for Hexham to particularly commend the staff at Prudhoe community high school, who have been working incredibly hard to minimise the impact on the children and young people who are taking their GCSEs, A-levels, BTECs, T-levels and all the assessments going on this summer. We know that school leaders and teachers are working tirelessly, regardless of any debate we have in this place about school funding or otherwise, to deliver the best outcomes for the children in their area. They should know that they have a Government who are on their side, who will support them to deliver that, despite the very challenging economic circumstances that we have inherited. We need to deliver the very best for all our children and young people. We have pledged to review the funding system to help to support and achieve that.