Knowsley Council predicts £4m school budget overspend

The council will be required to prepare a recovery plan for the government

A cash-strapped Merseyside council is set to overspend on part of its school budget by more than £4m.

Knowsley Council's overspend relates to special educational needs (SEN) provision for pupils, a report said.

The borough has the third highest number of children in receipt of education, health and care plans (EHCPs) in the country.

The deficit means the council will be required to put forward a recovery plan to the Department of Education.

It includes an overspend of nearly £1.5m carried over from 2021-21 which the report states "is largely due to a continued increase of children with Education and Health Care Plans... and the additional support needed to meet their needs".

Knowsley had the third highest proportion of deprived neighbourhoods in England, after Middlesbrough and Liverpool, a 2019 report showed.

In 2017, nearly 20% of pupils in the borough were identified as having special educational needs and 3.8% as having EHCPs, compared to a national average of 2.8%, the Local Democracy Reporting Service said.

The council receives a portion of its dedicated schools grant from the government for what is referred to as a "high needs block".

The report states "there are particular concerns" with this funding and a forecast overspend of £4.2m by the end of the year.

The report said the appointment of a principle educational psychologist had allowed for greater early intervention and communication with schools in the borough, meaning the council now has a "more accurate picture of the true cost" of SEN provision and the pressures informing it.

"Given the numbers currently being experienced, it is unlikely that significant reductions in the overspend can be achieved in the current year," it added.