Consultation on changing the dedicated schools grant

The Department for Education is consulting on changing the conditions and regulations applying to the dedicated schools grant (DSG), to clarify that it is a ring-fenced specific grant, separate from the general funding of local authorities.

It will also clarify that local authorities are expected to carry forward any deficits they may have on their DSG accounts, and the deficit does not have to be covered by their general reserves.

The government will then make a decision on the proposed changes, in time to inform the setting of local authorities’ budgets for the 2020 to 2021 financial year.