State schools in England are bracing for significant funding cuts as the government shifts the financial responsibility for special educational needs and disabilities (SEND) provisions to the Department for Education (DfE). Starting in the academic year 2028/29, the costs associated with SEND will be absorbed into the existing DfE budget, which raises concerns about potential school closures, increased class sizes, and reduced extracurricular activities.
The announcement was made by Chancellor of the Exchequer Rachel Reeves, who has not specified how the government plans to manage the estimated £6 billion cost of these changes. The Office for Budget Responsibility (OBR) highlighted that “no savings have been identified” to offset this financial burden, which could lead to a 1.7 percent decrease in per-pupil spending instead of the planned 2.4 percent increase.
Education leaders are sounding the alarm over the potential impact of these funding cuts. The National Education Union (NEU) has indicated that it may call for strikes in response to the cuts, which they describe as “catastrophic.” Julia Harnden, deputy policy director at the Association of School and College Leaders (ASCL), warned that even without the proposed cuts, many schools are already facing financial pressures due to rising costs associated with SEND provision, declining student enrollments, and increasing staff expenses. She stated that if funding rates fall in real terms, the consequences would be severe, potentially leading to more primary school closures, larger class sizes, and cuts to both curricular and extracurricular programs.
Concerns Over SEND Reforms
The Chancellor’s announcement signals impending changes to how SEND support operates, including revisions to eligibility for statutory support and adjustments to how children receive additional help. Parents are increasingly anxious that these reforms may jeopardize the support their children currently receive through education, health, and care plans (EHCPs).
Currently, SEND is financed through the dedicated schools grant (DSG), which comprises a “schools block” for mainstream schools and a “high-needs block” supplemented by local authority funding. However, local authorities have been under increasing financial strain due to a rise in the number of children requiring EHCPs, resulting in mounting deficits. In 2020, the government implemented a system allowing local authorities to overlook SEND deficits, a measure that has been extended twice and is set to expire in 2028. By that time, cumulative deficits are projected to reach £14 billion.
The recent changes will prevent local authorities from accumulating new SEND deficits, but they will still have to acknowledge existing historic deficits once the statutory override is lifted. This situation could compel many councils to issue bankruptcy notices.
Union Responses and Future Implications
In addition to the funding changes, Rachel Reeves also announced initiatives to improve secondary school libraries and upgrade playgrounds. Nevertheless, education unions have criticized the budget for failing to provide adequate support for schools, which they argue are “running on empty.” The NEU has declared that it will not tolerate ongoing underfunding and is prepared to ballot for strike action if necessary.
Daniel Kebede, general secretary of the NEU, emphasized the urgency of convincing the government to alter its course, stating, “We must – and we will – save our schools.” Similarly, Paul Whiteman, general secretary of the NAHT, commented that the budget lacks a focus on public spending, leaving many school leaders with difficult choices regarding cuts to staff and resources.
As discussions around funding and SEND reforms continue, the educational landscape in England faces uncertainty and potential upheaval. Schools and families alike are left to navigate these changes, with many concerned about the long-term impact on educational quality and access to necessary support services.
