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Local councils across England have raised alarms about impending financial turmoil linked to soaring expenses associated with special educational needs and disabilities (SEND). With an anticipated £14 billion deficit looming by 2028, leaders are urging the government to take decisive action, including the potential cancellation of existing SEND debts.
A System on the Brink
In a stark warning, council leaders have stated that eight in ten local authorities could face insolvency due to escalating SEND expenditures unless significant reforms are enacted. The Local Government Association (LGA) reported that a staggering 95% of top-tier councils are currently grappling with SEND deficits. Four-fifths of these councils are reportedly making cuts to essential services or resorting to loans to manage daily costs associated with SEND overspending.
The government is poised to release a much-anticipated white paper outlining proposals aimed at reforming the SEND system, which has been widely criticized by parents, educational institutions, and local authorities for its inefficiency and unsustainability. However, the process is politically sensitive, with ministers keen to curtail spending while avoiding backlash from both backbenchers and advocacy groups concerned about the potential erosion of children’s rights.
Councils Seek Relief from Debt
Bournemouth, Christchurch and Poole (BCP) council is among those seeking relief, having requested special permissions to exceed council tax limits to manage its SEND-related debts. The council has proposed a 7.5% tax increase, significantly above the permitted 4.99%, to cover annual costs of £10 million linked to loans taken out to address a mounting SEND deficit. Currently standing at £184 million, BCP’s deficit is projected to escalate to £380 million by March 2028, raising serious concerns about the council’s financial viability.
The LGA’s findings paint a dire picture: without reform, 79% of councils could find themselves effectively insolvent overnight when an accounting rule permitting them to keep SEND deficits off their balance sheets expires in 2028. Even if historical debts were wiped clean, ongoing budget shortfalls are expected to persist in 95% of local authority areas, with estimates from the Office for Budget Responsibility suggesting a funding gap of £6 billion for the 2028-29 fiscal year.
The Scale of the Challenge
Recent analyses reveal the staggering magnitude of SEND deficits faced by councils. Hampshire County Council anticipates a deficit of £706 million by March 2028, while West Sussex County Council and Suffolk County Council project deficits of £414 million and £250 million, respectively. Despite substantial investment and an increase in the assessment and identification of needs, the LGA has indicated a troubling lack of improvement in outcomes for children with SEND.
The government’s response to these mounting pressures remains uncertain. There are concerns that any unconditional write-off of historical SEND debts could raise equity issues, particularly as investigations have shown that a significant number of councils with substantial deficits are located in some of England’s wealthiest areas. Furthermore, the rapid increase in the number of education, health, and care plans (EHCPs)—from 240,000 in 2014 to approximately 640,000 today—has put immense strain on local authorities.
Council Leaders Demand Change
Amanda Hopgood, chair of the LGA’s children, young people and families committee, emphasized the commitment of councils to support every child in reaching their potential. However, she noted that the current system has left many councils struggling to cope with the rising demand for support. “The rise in support need has left many councils buckling under the strain,” she stated, underscoring the urgent need for reform to ensure sustainable support for vulnerable children.
The government was approached for comment but has yet to respond.
Why it Matters
The looming SEND crisis not only threatens the financial stability of local councils but also jeopardises the educational support available to vulnerable children across England. Without immediate and effective reforms, the system will not only become unsustainable but could result in reduced access to vital services for those who need them most. The outcome of the forthcoming white paper will be pivotal in determining whether local authorities can navigate this financial storm while continuing to provide essential support for children with special educational needs.
