Sixteen Knowsley schools started the current financial year carrying debt after overspending their allocated budgets, fresh figures reveal. The council is facing a £43.788m deficit between 2024/25 and 2025/26, made up of £17.655m from 2025/26 and £21.133m from 2024/25.
High needs block drives overspend
For 2025/26, the biggest reason for the deficit is overspending in the high needs block of the dedicated school grant (DSG). An extra £18.127m was spent largely due to a greater number of pupils with education and health care plans (EHCP) across schools. EHCPs are legally binding documents issued for children and young people aged from birth to 25 who need more support than is available through standard special educational needs (SEN) support.
The council’s school forum report says this level of demand “is being experienced across the region and nationally”. Each school is allocated a DSG, and amounts differ per school. It covers daily running costs like salaries, energy bills, and classroom materials. Schools rely on separate government funding grants for major repair and maintenance works.
If schools spend more than their DSG, they carry debt. While the council temporarily covers this debt, the school must eventually make up for it, such as through saving money in the next year.
24 schools overspent in 2025/26
The schools forum report shows 24 Knowsley schools overspent their allocated budgets during the 2025/26 financial year, while 16 ended the year in a deficit position, meaning they started the current financial year in debt.
These are the 24 schools and how much they overspent by:
- Eastcroft Park – £195,814
- Knowsley Village – £159,873
- Evelyn Primary – £150,537
- Holy Family – Cronton – £150,357
- St Joseph the Worker – £145,315
- St Aloysius – £145,031
- St John Fisher – £141,986
- St Michael & All Angels – £131,621
- Saints Peter & Paul’s – £122,947
- St Andrews the Apostle – £105,065
- St Aidan’s – £86,938
- Meadow Park (PRU) – £60,432
- St Leo’s – £45,331
- All Saints (Secondary) – £45,106
- St Columba’s – £41,667
- Westvale Primary – £38,081
- St Mary and St Pauls – £18,978
- St Brigid’s – £15,809
- Hope Primary – £15,472
- St Joseph RC – £12,408
- Kirkby CE – £10,165
- Roby Park – £7,418
- Ravenscroft Primary – £4,817
- St Alberts – £155
Historical debt carries over
Although some schools may not have overspent in the last year, or overspent by only a small amount, historical debt from previous years carries over until it is paid off through saving money in following years. For example, St Andrews the Apostle started 2025/26 with a debt of £254,900. After overspending by £105,065, they ended the year with a final debt of £359,965.
The 16 schools in debt as of March 31, 2026:
- St Andrews the Apostle – £359,965
- Saints Peter & Paul’s – £265,109
- St Michael & All Angels – £237,441
- Kirkby CE – £233,588
- Evelyn Primary – £228,414
- Knowsley Village – £220,683
- Holy Family – Cronton – £149,181
- St John Fisher – £105,775
- Eastcroft Park – £104,587
- St Aloysius – £100,789
- St Joseph the Worker – £90,928
- St Aidan’s – £13,532
- St Leo’s – £4,705
Forum decides against clawback
On Thursday, October 1, the Knowsley school forum considered whether to recover money saved by schools to distribute to those which had overspent, but decided against this. When schools save money from their allocated DSG, they end the year in excess balance, which they can carry into the next school year.
Primary schools, special schools and pupil referral units (PRU) are allowed to save a maximum of 8% of their annual DSG, while this is 5% for secondary schools. This is the standard national guidance from the Department for Education.
However, when schools hold onto savings for multiple consecutive years, the council’s school forum must decide whether to claw back the money above the threshold, unless the school can explain how this money is being designated and approved for long-term plans or projects. The Local Democracy Reporting Service understands the council forum looks to create its own policy for dealing with schools with excess balance, as is the council’s right. Therefore, they will not take back any savings from schools until they know what that policy will be.
Currently in Knowsley, the council allows a one-year grace period, letting schools retain the money and roll it over. Any time longer than this and the school forum must vote on whether to recover the money. Some schools have held excess balances for multiple years, including Hope Primary for a third year, St Luke’s for a fourth year, and Meadow Park for a fifth year.
