A recent survey indicates that four in five councils in the UK are at risk of insolvency due to increasing costs associated with special educational needs (SEND). The research, conducted by the Local Government Association (LGA), found that 79 percent of councils believe they will be unable to balance their budgets by 2028, when a statutory override that currently allows SEND overspending to remain off their balance sheets is set to expire.
The findings are concerning for local authorities, which are grappling with the financial strain of educational support needs. Almost all respondents, 94 percent of the 87 local authorities surveyed, indicated that they are likely to continue overspending on SEND services even if their deficits were eliminated by 2028. Furthermore, nearly half of these councils reported that they expect to increase their overspending rates.
Councillor Amanda Hopgood, chair of the LGA’s children, young people and families committee, emphasized the urgent need for reform. She stated, “Under the current system, the rise in support needs has left many councils buckling under the strain. The huge costs in providing support are threatening most councils with insolvency.”
The situation is exacerbated by the fact that 95 percent of councils currently have deficits on their dedicated schools grant for the 2025/26 financial year. The LGA is advocating for the government to address these deficits in the upcoming local government finance settlement. They also urge reforms outlined in the Schools White Paper to ensure that more children with SEND can receive adequate support in mainstream schools.
Paul Whiteman, general secretary of the school leaders’ union NAHT, noted the shortcomings in the current support systems, stating, “Even where councils are accumulating deficits, the support they are stretching to still often falls short of what schools and families require. It’s urgent that this is addressed in the forthcoming White Paper, both through systemic reform and significant investment.”
The rise in educational health and care plans (EHCPs) is a significant factor contributing to the financial pressure on councils. These legal documents outline the support that children with SEND are entitled to receive, but the soaring number of EHCPs has resulted in escalating expenditure. The total number of EHCPs issued reached 638,745 as of January 2025, a sharp increase from 353,995 in 2019.
Education minister Georgia Gould has assured that there will always be a legal right to additional support for young people with SEND. Meanwhile, a recent poll conducted by Teacher Tapp for the Social Market Foundation, involving 9,000 teachers, revealed that over half of the participants (58 percent) would support reducing EHCPs in favor of investing in early intervention or classroom-based support.
According to the Office for Budget Responsibility, there is a projected funding gap of £6 billion between anticipated funding and the costs of SEND services by 2028/29. The government has stated that this gap will be absorbed within the overall budget, rather than being sourced from schools.
The Schools White Paper, outlining the government’s plans for SEND reforms, is expected to be released in the coming weeks. A spokesperson for the Department for Education remarked, “We’re changing the school system and ending the postcode lottery so children with SEND get the right support earlier, when and where they need it.”
As councils continue to face unprecedented pressures, the need for effective reform and sustainable funding solutions has never been more critical.
