Revised arrangements for the Dedicated Schools Grant

Closed 15 Nov 2019

Opened 11 Oct 2019

Feedback updated 3 Jun 2020

We asked

We asked for views about strengthening the arrangements for ring-fencing DSG so that it is clear that DSG deficits do not have to be met from local authorities’ general funds.

You said

The majority of respondents agreed with the proposals but thought they needed further strengthening to achieve what was intended.

We did

The department put the ring-fencing requirement into the School and Early Years Finance Regulations 2020 to give it statutory backing.  DSG deficits can no longer be paid off from general funds without requesting permission from the Secretary of State, and the DfE will work with authorities to enable them to pay off their deficits from within DSG funds.


We're seeking views on changing the dedicated schools grant.

Why your views matter

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

It also clarifies that any deficit an authority may have on its DSG account is expected to be carried forward, and does not require to be covered by the authority’s 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 financial year 2020-21.


  • Headteachers
  • Local authorities


  • Education