Dedicated schools grant (DSG) management plan
Source: gov.uk (2025-03-26)

Template and guidance for local authorities for the Department of Education (DfE) DSG management plan.

The Education and Skills Funding Agency (ESFA) closed on 31 March 2025. All activity has moved to the Department for Education (DfE). You should continue to follow this guidance.

The dedicated schools grant (DSG): conditions of grant 2025 to 2026 (https://www.gov.uk/government/publications/dedicated-schools-grant-dsg-2025-to-2026) (paragraph 5.2), require that any local authority with an overall deficit on its DSG account at the end of the 2024 to 2025 financial year, or whose DSG surplus has substantially reduced during the year, must be able to present a plan to the Department for Education (DfE) for managing their future DSG spend.

DSG management plan template

You can now view and download the new version of the template directly from this GOV.UK page, without the need to access Document exchange.

We have worked with local authorities to develop a supportive standard DSG management plan template. Please read the accompanying guidance, when completing it.

We have designed the template to help local authorities manage their DSG and form evidence-based and strategic future plans for the provision of children and young people with special education needs and disabilities.

We encourage all local authorities to use the template as a planning tool. It will be useful when discussing proposals and sharing complex funding information in a simple way with internal and external bodies, parent and carer forums and elected members. We expect the plan to be updated and presented at schools forum meetings and any high needs sub-groups regularly, and at least on a termly basis.

Local authorities should aim to present an up to date version of the plan to the schools forum in time for budget planning discussions and before the deadline for block movement requests, if they are submitting one. The template should be updated regularly throughout the year to reflect the most recent forecast position and be viewed as an on-going live document.

DSG management plan: guidance for local authorities

This guidance document is a step-by-step guide to help local authorities complete the DSG management plan template.

Further information

Relevant departmental advice and statutory guidance

DSG: conditions of grant 2025 to 2026 (https://www.gov.uk/government/publications/dedicated-schools-grant-dsg-2025-to-2026)

High needs funding arrangements: 2025 to 2026 (https://www.gov.uk/government/publications/high-needs-funding-arrangements-2025-to-2026)

Pre-16 schools funding: local authority guidance for 2025 to 2026 (https://www.gov.uk/government/publications/pre-16-schools-funding-local-authority-guidance-for-2025-to-2026)

section 251 budget and outturn returns for 2024 to 2025 (https://www.gov.uk/government/publications/section-251-2024-to-2025)

section 251 budget and outturn returns for 2023 to 2024 (https://www.gov.uk/government/publications/section-251-2023-to-2024)

section 251 budget and outturn returns for 2022 to 2023 (https://www.gov.uk/government/publications/section-251-2022-to-2023)

Other departmental resources

High needs benchmarking tool (https://www.gov.uk/government/publications/high-needs-benchmarking-tool)

The School and Early Years Finance (England) Regulations 2025 (https://www.legislation.gov.uk/en/uksi/2025/42/contents/made)