A report by the National Audit Office has found that England’s special educational needs and disabilities (SEND) system is not delivering better outcomes for children and young people.
It also warned it is not financially sustainable and is in urgent need of reform.
The report said there has been “soaring demand” for support for children with SEND, with a 140 per cent increase in children with education, health and care plans between 2015 and 2024.
Over the past decade, councils’ ‘high needs’ funding has increased by more than half (58 per cent) to £10.7 billion in 2024/25, while councils’ dedicated schools grant deficits could reach £4.6 billion by March 2026.
This is when accounting arrangements stopping these deficits impacting councils’ financial position come to an end. The NAO warns that this will leave two-fifths of councils at risk of issuing a section 114 notice, indicating they cannot set a balanced budget.
The LGA has called for high needs deficits to be written off to ensure councils are not faced with having to cut other services to balance budgets through no fault of their own, or their residents.
Cllr Arooj Shah, Chair of the LGA’s Children and Young People Board, said: “With councils currently able to keep these [deficits] off their balance sheets, we have serious concerns that many will face a financial cliff-edge when this flexibility ends in March 2026.”
She added: “The NAO report is yet another indictment of a failing SEND system that is not meeting the care and support needs of children with special needs.”
