The Dedicated Schools Grant (DSG) is paid by the Secretary of State for Education (the Secretary of State) to local authorities (LAs). It is split into four “blocks”. One of these is the High Needs Block. This provides for funding for LAs to support children with SEND/EHCPs. In recent years there have been significant financial pressures on High Needs Block spending. Many LAs now have significant DSG deficits, due to their High Needs Block overspends. The Secretary of State has sought to tackle this problem through a “Safety Valve” intervention programme, under which, at the invitation of the Secretary of State, 38 LAs have entered into “Safety Valve Agreements” (SVAs) with the Secretary of State. These include Devon and Bristol. Under SVAs, the LA agrees to take action to bring its DSG back into balance, and to monitoring by the Secretary of State, and the Secretary of State agrees to pay additional DSG to the LA, with a view to eliminating the deficit according to a specified timetable.
The decisions by Devon and by Bristol to enter into their respective SVAs have been challenged by judicial review. At a “rolled-up” hearing beginning on 28 January 2025 James Goudie KC, Oliver Jackson and Rita Dias represent Devon. Joanne Clement KC and Peter Oldham KC have advised and represented Bristol, where permission has been granted to argue one ground of claim only – namely that Bristol was required to consult under section 27 of the Children and Families Act 2014 before entering into the SVA.
