Camden schools face funding squeeze as council warns of burgeoning costs

Camden’s schools budget is creaking despite a recent £20 million funding boost from the government, according to a new report.

At a schools panel meeting last week, councillors discussed updated financial predictions for the borough, including an additional spending forecast for schools’ ‘higher needs block’.

This refers to top-up funding for schools and colleges that support pupils with special educational needs (SEND).

The report states that the budget excess is mainly due to inflationary pressure, but also a nine per cent increase in the number of young people identified as having high needs.

Camden Council previously estimated an overspend of £2.1 million, but this has now grown by a further £500,000.

Local authorities receive ring-fenced funding for education through the dedicated schools grant.

Total government funding for Camden is £251.1 million – an increase of £20.3 million from the previous year.

Executive director of corporate services, Jon Rowney, predicts that the local authority’s financial reserves for schools’ higher needs block could be wiped out by 2026/27.

The report adds: “If funding fails to increase in real terms, combined with unusually sharp increases to costs from high levels of general inflation and utility costs, then Camden schools may need to continue to plan for a reduction in spending power.”