What is the Dedicated Schools Grant (DSG)? by Gordon Forsyth
The Dedicated Schools Grant is money given by the government to Lincolnshire County Council. This money can only be used to support education in schools, nurseries, and for children with extra needs.
Where does the money go?
The money is split into 4 pots:
- Schools Block – Pays for day-to-day running of mainstream primary and secondary schools – like staff wages, books, and heating.
- High Needs Block – Supports children and young people who need extra help (e.g. those with an Education, Health and Care Plan, or EHCP).
- Early Years Block – Pays for free childcare and nursery places for 2-4-year-olds.
- Central Services Block – Used for behind-the-scenes services like sorting out school places and improving schools.

What’s happening with the money in Lincolnshire?
- Last year (March 2024), there was a small extra of £1.47 million.
- But this year, Lincolnshire is expecting to overspend by over £16 million – mostly because more children need extra help than before.
- This means by next year (March 2025), they expect to be £3.4 million in the red (that means they’ve spent more than they got).
- What is Lincolnshire doing about it?Lincolnshire is trying to balance the books by:✔️ Moving money between pots
- Some money (£2.8 million) is being moved from the schools pot to help the high needs pot. This was agreed after talking with local schools.
✔️ Changing funding rates
- The amount of money schools get per child has been slightly reduced so the council can spread the money better.
- Money to support new schools or expanding schools has also been reduced.

- What does this mean for parents?
- Lincolnshire is struggling to keep up with the number of children needing extra support, like those with autism, ADHD, or other special educational needs.
- They’re trying to make the money go further, but this could affect how quickly support is given or what’s available.
- Schools are being asked to do more with less money, especially when it comes to children who need extra help.
Why should you care?
If you’re a parent of a child with special needs, or one in a local school or nursery:
- These decisions could affect the support your child gets.
- It helps to know where the money is going and why schools may be under pressure.
- It also explains why waiting lists for support might be longer than before.

What is the Dedicated Schools Grant (DSG)? by Gordon Forsyth








