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The UK government has unveiled a significant initiative to address the mounting debts incurred by English councils in supporting children with special educational needs and disabilities (SEND). The £5 billion package aims to alleviate 90% of these debts by the end of the current financial year, a move that follows alarming warnings from the Local Government Association (LGA) about potential bankruptcies among councils facing unsustainable SEND deficits.
Urgent Financial Relief for Councils
The LGA recently highlighted that a staggering eight out of ten councils in England could find themselves on the brink of insolvency if forced to repay their SEND debts in full. This announcement from the government is seen as a crucial step in preventing widespread financial collapse among local authorities. Cllr Louise Gittins, chair of the LGA, expressed relief, stating that this decision acknowledges the systemic issues contributing to the rising costs that councils have faced.
Under current regulations, councils are legally obligated to identify and support children with SEND; however, the financial burden has escalated significantly, with local authorities spending billions more than they receive from central government. Currently, councils are permitted to defer these deficits from their financial statements due to a statutory override, which is set to expire in 2028. Projections from the Office for Budget Responsibility (OBR) indicate that the total SEND-related debt could soar to £14 billion by the time this override ends.
The new funding initiative will provide councils with grants covering 90% of their SEND deficits accrued up to the end of the financial year, specifically targeting the high needs block of the dedicated schools grant.
A Broken System in Need of Reform
Cllr Gittins described the government’s plan as a “recognition that these costs are not of councils’ making,” attributing the financial strain to a broken system that requires urgent reform. Despite this relief, she emphasized that completely writing off both historic and future deficits remains essential for long-term sustainability.
Currently, over 1.7 million pupils in England are receiving some form of support for special educational needs, with those requiring higher levels of assistance through education, health, and care plans (EHCPs) having more than doubled in the last decade. This surge in demand has placed immense pressure on council budgets, prompting calls from various MPs for increased funding for mainstream schools to bolster the SEND system.
In response to these challenges, the government has previously announced a £3 billion investment aimed at creating 50,000 new specialist school places within mainstream settings. The Department for Education maintains that any reforms must be rooted in robust funding structures, as they work collaboratively with councils to enhance the educational landscape for SEND students.
Looking Ahead: Future Plans for SEND
The government has pledged to provide further details regarding how it intends to manage SEND deficits incurred between April 2026 and April 2028, coinciding with the expiration of the statutory override. These plans are expected to be outlined in the forthcoming Schools White Paper, which aims to establish a more inclusive education system that supports all children while ensuring financial viability for local councils.
As part of its broader strategy, the government is also under pressure to inject additional funds into mainstream school budgets to facilitate an overhaul of the SEND framework.
Why it Matters
The government’s decision to relieve councils of a significant portion of their SEND debts is a pivotal moment in addressing the urgent financial crises facing local authorities across England. By alleviating these burdens, the administration not only safeguards the financial stability of councils but also aims to ensure that support for vulnerable children remains a priority. As the SEND landscape continues to evolve, these reforms could mark a crucial turning point in providing equitable educational opportunities for all children, regardless of their needs.
