Schools across the UK are expressing serious concerns about a potential drop in per-pupil funding, estimated at £400, following the government’s recent announcement to cover local councils’ increasing expenditures on special educational needs and disabilities (SEND). The Chancellor’s plan aims to address the financial challenges faced by councils dealing with a significant rise in autism and ADHD diagnoses, but it also raises questions about future funding for schools.
The recent Budget revealed that from 2028-29, local councils will no longer be required to operate with deficits to cater to SEND costs. Instead, central government will manage these expenses, with plans to be outlined later for addressing existing debts. This decision comes amid warnings that multiple local authorities are nearing financial collapse due to soaring SEND-related expenses.
The Office for Budget Responsibility (OBR) has indicated that the government has not clarified how these financial commitments will be funded, projecting an initial annual cost of approximately £6.3 billion. Should the Department for Education, led by Bridget Phillipson, be required to absorb these costs, it could lead to a substantial reduction in mainstream school funding. The OBR noted, “If it were fully funded within the DfE’s £69 billion core schools budget in 2028-29, this would imply a 4.9 percent real fall in mainstream school spending per pupil rather than the 0.5 percent real increase planned by Government.”
A reduction of this magnitude would equate to about £400 less per pupil, according to the OBR. In response, the Department for Education has contested this claim, asserting that the additional funding will come from across the government budget rather than the schools’ budget.
Union leaders have raised alarms about the potential consequences of dipping into the schools budget. Pepe Di’Iasio, general secretary of the heads’ union ASCL, emphasized the severity of the situation: “Several local authorities are seemingly at risk of financial collapse as a result of deficits relating to SEND spending. Were this risk to be transferred onto schools, in the form of budget cuts to cover the cost of SEND provision being absorbed into departmental spending, it would be catastrophic.”
Shadow Education Secretary Laura Trott echoed these concerns, stating that the funding changes would “push already struggling schools further into the red.”
The current crisis has been exacerbated by a staggering 80 percent increase in the number of pupils eligible for council-funded care since 2019, driven largely by the rise in diagnoses of autism and ADHD. The OBR has warned that this situation is likely to reach a critical point in 2028-29, when councils must formally acknowledge their deficits, as the statutory override that allowed them to ignore these debts will come to an end.
In the past, councils benefited from a statutory override, which enabled them to overlook deficits. However, this will conclude in 2028-29, potentially leading to a total deficit of around £14 billion. The OBR has highlighted that without a clear plan from the government on how to manage these debts, it poses a significant fiscal risk.
Earlier this month, the County Councils Network reported that 59 local authorities could face “total collapse” once their deficits are officially accounted for. As a response, the government has announced plans to reform the SEND system, with further proposals expected in the New Year aimed at providing additional support at the school level.
While the government has committed to absorbing SEND costs from 2028-29, many are urging for clarity on how existing deficits will be addressed. A spokesperson for the Local Government Association remarked, “While it is positive the Government has committed to absorbing the costs of SEND spending from 2028/29, this does not address existing deficits, which are pushing many councils to the financial brink.”
In an effort to alleviate some of the financial pressures, the government has also announced an additional £5 million for new books in secondary schools and £18 million over two years for upgrading playgrounds across England, although these measures may not sufficiently address the critical funding issues facing schools.
As the education sector braces for potential changes, the implications of these funding decisions will be closely monitored by educators, parents, and policymakers alike.
