Council Finances Under Strain as SEND Costs Soar: Urgent Reforms Needed

Grace Kim, Education Correspondent
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A recent study by the Local Government Association (LGA) has revealed that nearly 80% of local councils in England are at risk of financial collapse due to escalating costs associated with the Special Educational Needs and Disabilities (SEND) system. The LGA is calling on the government to address these mounting deficits and implement substantial reforms to ensure sustainable support for children with additional needs.

Understanding SEND: An Overview

Special Educational Needs and Disabilities (SEND) encompasses a range of support required by children and young people who face challenges in areas such as physical health, communication, social interaction, and emotional well-being. In England, parents or guardians can apply for an Education, Health and Care Plan (EHCP) if a child requires assistance beyond what is typically available in mainstream education. These plans outline the specific needs of the child and the necessary support, remaining valid until the age of 25, provided the individual remains in education.

The Rise in SEND Support Needs

Currently, over 1.7 million pupils—approximately one in five students—receive some form of SEND support across England. Of these, roughly 483,000 students benefit from the most comprehensive level of assistance via EHCPs. The total number of young individuals with EHCPs has more than doubled over the past decade, now standing at 639,000. A significant factor driving this increase is the rise in diagnoses of autism spectrum disorder (ASD), which is now cited as the primary need in a third of all EHCPs. Additionally, there has been heightened demand for speech and language services and support for social, emotional, and mental health issues, particularly following the disruptions caused by the Covid-19 pandemic.

Financial Implications of SEND

The financial burden of SEND support is set to escalate dramatically. Projections indicate that councils will spend £14.8 billion on SEND in the 2025/26 fiscal year, a significant rise from £5 billion in 2015/16. It is mandated that mainstream schools cover the initial £6,000 for each pupil with SEND, while local authorities are responsible for the costs associated with EHCPs and the full expenses of special schools. For many councils, this has resulted in growing deficits, as their funding from central government has failed to keep pace with rising demands.

Councils currently provide independent special school placements for around 38,000 pupils, a situation exacerbated by a lack of available specialist places in the state sector. The average annual cost for a place in an independent special school is approximately £61,500, compared to £24,000 for state-funded institutions. Furthermore, transportation costs for SEND pupils have surged, with councils spending £1.5 billion on transport in 2023/24, more than double the expenditure from eight years prior.

Systemic Challenges

The SEND system is grappling with multiple challenges, as highlighted by the National Audit Office in 2024, which deemed it “financially unsustainable.” Despite a 58% increase in funding over the past decade, the system has not yielded the expected improvements in outcomes for SEND children. Mainstream schools are increasingly pressured to accommodate these students, yet they face shortages of both specialist staff and dedicated school placements. The process of obtaining an EHCP is often protracted, with fewer than half being issued within the legally mandated 20 weeks. This has resulted in a record number of tribunal cases in 2024/25, where parents contest the level of support provided or the refusal of assistance altogether.

Proposed Reforms to the SEND System

In light of these challenges, the government has proposed reforms aimed at enhancing the SEND framework in England. These reforms include a commitment to making mainstream schools more inclusive and ensuring earlier interventions to reduce reliance on EHCPs. The government has allocated £3 billion in capital funding to create 50,000 new specialist places, many located within mainstream schools, and has earmarked £200 million for SEND training for educators. While some policymakers advocate for the preservation of EHCPs, others suggest that these plans may be replaced entirely.

The Situation Across the UK

Education is a devolved matter, leading to distinct approaches to supporting students with additional needs throughout the UK. In Scotland, for example, children are assessed based on “additional support needs,” with legally binding “coordinated support plans” reserved for those with the most complex requirements. Meanwhile, Wales has implemented substantial reforms for children with “additional learning needs,” and Northern Ireland utilises the term SEND but refers to legally binding plans as “statements of special educational needs.”

Why it Matters

The financial and systemic pressures faced by local councils in providing SEND support not only jeopardise their fiscal stability but also compromise the quality of education and resources available to vulnerable children. Without immediate government intervention and comprehensive reforms, the SEND system risks failing those it is designed to assist, leaving countless families without essential support and exacerbating existing inequalities in educational outcomes. The urgency for change has never been clearer, as councils navigate an unsustainable landscape of rising costs and increasing demand.

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Grace Kim covers education policy, from early years through to higher education and skills training. With a background as a secondary school teacher in Manchester, she brings firsthand classroom experience to her reporting. Her investigations into school funding disparities and academy trust governance have prompted official inquiries and policy reviews.
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