A recent survey reveals that nearly four in five local councils in the United Kingdom are on the brink of bankruptcy due to escalating costs associated with special educational needs (SEND). According to research conducted by the Local Government Association (LGA), approximately 79 percent of councils are unlikely to achieve a balanced budget by 2028 when the statutory override, which currently allows SEND overspends to remain off their balance sheets, is set to end.
The LGA’s findings highlight a critical financial crisis. Almost all councils—around 94 percent of the 87 local authorities surveyed—indicated they would likely continue to overspend on SEND even if their existing deficits were resolved by 2028. Alarmingly, nearly half of these councils anticipate an accelerated rate of overspending on their SEND budgets.
Councillor Amanda Hopgood, chairman of the LGA’s children, young people, and families committee, emphasized the urgency of the situation, stating, “Under the current system, the rise in support need has left many councils buckling under the strain. The huge costs in providing support are threatening most councils with insolvency.”
The financial burden is further compounded by the fact that 95 percent of councils are currently operating with a deficit on their dedicated schools grant for the 2025/26 fiscal year. The LGA is advocating for the government to address these deficits in the final local government finance settlement, as well as to ensure that reforms outlined in the Schools White Paper will allow more children with SEND to receive adequate support within mainstream schools.
In a related development, Paul Whiteman, general secretary of the school leaders’ union NAHT, pointed out that even councils grappling with deficits are often unable to meet the needs of schools and families. “It’s urgent that this is addressed in the forthcoming White Paper, both through systemic reform and significant investment,” he stated.
Concerns have also emerged regarding the education, health, and care plans (EHCPs), which serve as legal documents outlining the support entitled to young people with SEND. The rapid increase in the issuance of EHCPs has led to soaring expenses for councils. As of January 2025, there were 638,745 EHCPs in existence, a significant jump from 353,995 in 2019. Some have suggested legislative changes to focus EHCPs solely on those with the highest needs, a proposal that has raised alarms among SEND parents.
In response to the crisis, Education Minister Georgia Gould has assured that there will always be a legal right to additional support for young people with SEND. Meanwhile, new polling data from Teacher Tapp, commissioned by the Social Market Foundation, found that over half (58 percent) of teachers support reducing the number of EHCPs to instead allocate funds for earlier intervention or classroom-based support.
Forecasts from the Office for Budget Responsibility suggest a looming £6 billion shortfall between anticipated funding and the costs associated with SEND by 2028/29. The government has indicated that this gap will be absorbed within the overall budget rather than impacting schools directly. The anticipated Schools White Paper, which will outline the government’s plans for SEND reforms, is expected to be published in the coming weeks.
A spokesperson from the Department for Education stated, “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.” With the future of local councils hanging in the balance, many are watching closely to see how these reforms will unfold.
