In a recent development, government officials have strongly defended their plans that aim to integrate funding for children with special educational needs and disabilities (SEND) into broader educational spending. This initiative is seen as part of an effort to address the financial challenges surrounding local authorities. The Department for Education (DfE) has dismissed projections from the Office for Budget Responsibility (OBR) that imply such a strategy may adversely affect school budgets. According to the government, improvements to the SEND framework are imminent and will emerge in the new year.
The DfE has asserted that by 2028, it plans to take over full SEND funding from local councils, a move projected to incur additional costs approaching £6 billion. Local authorities have generally welcomed this change, acknowledging that current financial commitments are becoming unsustainable due to ballooning costs. However, teaching unions express apprehension, aligning with the OBR’s warning that this could result in reduced financial resources for schools.
Currently, local councils rely on a specified grant from the DfE, known as the dedicated schools grant, which is meant to cater to SEND support. Nonetheless, the overwhelming demand has compelled local authorities to expend billions more than provided by the central government. The number of young individuals with council-funded education, health, and care plans (EHCPs) has effectively doubled since 2016, complicating the financial landscape further.
In response to the escalating SEND costs, local councils have benefited from a “statutory override” since 2020, which allowed them to indefinitely defer accounting for their SEND debts. This measure was recently extended to 2027-2028, yet many councils are bracing for escalating expenditures, which could potentially lead to bankruptcy without this safety net. According to the OBR, local authorities could face cumulative deficits totaling £14 billion by the end of the 2027-2028 financial year, a situation compounded by uncertainty over who will bear responsibility for these debts.
The government announced during the recent Budget that it would assume the total cost of SEND provision by 2028-2029. This translates to the impending cost pressures associated with SEND being handled directly on the government’s balance sheet rather than the councils’. Nevertheless, the OBR highlighted that the government has not yet identified savings to counterbalance the additional £6 billion expenditure anticipated from this transition. Should this money come from existing school budgets, the OBR predicts a significant decline in spending per pupil in mainstream schools.
However, the DfE has robustly refuted these forecasts, claiming they overlook the “much-needed SEND reforms” that are forthcoming. A spokesperson emphasized that the current system is strained to its limits and changes will be instituted to ensure timely support for children, ultimately leading to financial sustainability for councils.
In the interim, uncertainty looms over how the government will navigate the conflicting pressures between escalating SEND requirements and the burgeoning costs associated with providing appropriate educational support. Cllr Matthew Hicks, chair of the County Councils Network, described the government’s commitment on SEND spending as a potentially positive measure but cautioned that uncertainty persists regarding the fate of SEND debts incurred prior to 2028.
Despite these assurances from government officials, concerns continue to mount, particularly from educational leaders and parents. For instance, the Association of School and College Leaders (ASCL) has warned that any reduction in school funding would have dire consequences for educational quality. The National Education Union (NEU) has gone as far as to indicate that it might consider strike action if issues regarding funding are overlooked.
Parents, such as Aimee Bradley, who runs a campaign group focused on SEND, are voicing their unease regarding the vague details surrounding government plans. Many require clear answers, especially as the educational landscape seems increasingly precarious. As the government strives to roll out comprehensive reforms to the SEND system, clear guidance will be essential for the various stakeholders involved, including parents, teachers, and local councils.
Looking forward, leaders in the educational sector stress the need for dialogue and transparency as the government embarks on its task of reformulating the SEND funding strategy. With strong resistance anticipated from various political entities, including opposition MPs, adherence to sound funding practices while enhancing SEND provision will be integral to avoiding potential crises in the education system. The government bears the weighty responsibility of addressing these challenges head-on to cultivate a fair and efficient educational framework for all children.
