Councillor Paul Bellenger: The growing financial concerns of SEND services in local authorities

These services, designed to support children and young people with a range of complex needs, are vital for fostering inclusivity and ensuring every individual has the opportunity to thrive. However, delivering such support is placing an unsustainable strain on local councils.

The past decade has seen a dramatic surge in the number of young people requiring SEND support. The issuing of Education, Health, and Care Plans (EHCPs) (legal documents outlining an individual’s needs and entitlements) has soared by around 140 per cent since 2015. This increase is due to a combination of factors, including advancements in medical diagnosis, greater awareness of SEND among parents and educators, and expanded criteria for eligibility.

While the rise in demand highlights the growing recognition of the importance of SEND services, it has also created significant financial challenges. Local authorities are legally required to meet the provisions of EHCPs, making it impossible to reduce services without breaching these obligations.

However, funding for SEND services has not kept pace with the sharp increase in demand. Government funding allocations for high-needs budgets have increased by 58 per cent since 2015, but this has been insufficient to cover the additional costs incurred. In real terms, funding per EHCP has declined by 35 per cent, forcing councils to stretch their resources ever more thinly.

As a result, most local authorities are operating with significant budget deficits in their high-needs funding blocks. These deficits collectively amount to an estimated £3.3 billion, with nearly half of all councils reporting that they are overspending on their SEND budgets. The Department for Education's "statutory override", which temporarily prevents these deficits from impacting councils' overall financial positions, is set to expire in March 2026. Without a long-term solution, many councils face the prospect of insolvency.

The Path Forward

Addressing the financial challenges of SEND services requires collaborative and comprehensive action. The government must work with local authorities to develop a sustainable funding model that reflects the true cost of providing SEND support. This includes investing in early intervention measures, streamlining the EHCP process, and ensuring equitable access to resources across regions.

In addition, systemic reform is needed to improve the efficiency and effectiveness of the SEND system. This includes enhancing training for educators, expanding specialist school provision, and fostering greater collaboration between local authorities.

The financial stability of councils and the quality of SEND services are intertwined. Without urgent action, the current trajectory risks not only the collapse of council finances but also the loss of crucial support for some of the most vulnerable members of society. Safeguarding the future of SEND services is not just a financial imperative, it is a moral one.