Cheshire East could see up to 90 per cent of its whopping £156 million special needs deficit wiped by the government in October 2026.

The DSG (dedicated schools grant) overspend was £156.596 million at the end of the 2025/26 financial year.

Earlier this year, the government pledged to cover up to 90 per cent of historic SEND (special educational needs and disability) deficits accrued up to the end of 2025/26 for all councils, on condition they submitted a SEND reform plan which had to be approved by the Department for Education (DfE).

On Thursday (30 July) at a meeting of the corporate overview and scrutiny committee, Bollington councillor Ken Edwards (Labour), asked when Cheshire East could expect to receive any payments and how much.

Executive Director of Resources, Ashley Hughes, said: "It is up to 90 per cent. The government will, most likely because of our position, move us into the 90 per cent number. We'll await that number coming out."

He said the council had submitted its SEND reform plan.

"I think it's September 25, we're expecting a decision as to whether or not our SEND reform plan has been accepted in full," the finance boss told the committee.

"If it has been so, a payment of up to 90 per cent, they will tell us exactly what that number is, will be due in October.

"If it is not accepted, we have a second bite of the cherry before Parliament rises for Christmas, and then a payment would then be forthcoming in January 2027."

The DSG is a ring-fenced grant handed out by the DfE for school budgets.

The high needs funding block of the DSG is used to pay for SEND provision.

But, for many councils, the cost of SEND provision over recent years has outstripped government funding by tens of millions of pounds.

To stop local authorities going bust, any deficit associated with the DSG has been kept off their books thanks to a statutory override.

This was agreed by the former Conservative government and councils such as Cheshire East are holding this deficit in a 'negative reserve' but paying interest on it.

Labour's decision this year will see up to 90 per cent of that deficit removed.

Mr Hughes told councillors the residual, which would be about £15 million for Cheshire East if the government does agree to cover 90 per cent, 'is ours to manage'