Schools across the UK are expressing alarm following the government’s recent announcement regarding special educational needs and disabilities (SEND) funding. The Chancellor revealed plans to relieve councils of deficits associated with rising SEND costs, which have surged due to increasing diagnoses of conditions such as autism and ADHD. This move could potentially lead to a significant drop in per-pupil funding, estimated at around £400, or a 4.9 percent reduction, according to the Office for Budget Responsibility (OBR).
Under the new plan, starting in 2028-29, local councils will no longer be allowed to operate with deficits to cover SEND expenditures. Instead, the central government will manage “future funding implications” related to these costs. As local authorities grapple with overwhelming financial pressures, many are on the brink of financial collapse, with the number of pupils requiring council-funded care increasing by 80 percent since 2019.
Despite the government’s commitment to support local councils, the OBR cautioned that there is currently no clear plan for how these costs, projected to reach £6.3 billion annually, will be funded. Should the Department for Education, led by Bridget Phillipson, be required to absorb these expenses, it could severely impact funding for mainstream schools. The OBR stated, “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.”
Union leaders have voiced strong concerns that any cuts to school budgets to cover SEND costs would be disastrous. Pepe Di’Iasio, general secretary of the Association of School and College Leaders (ASCL), remarked, “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.”
The Labour Party’s shadow education secretary, Laura Trott, echoed these sentiments, stating that the new funding arrangement would “push already struggling schools further into the red.” The urgency of the situation is underscored by the fact that councils will have to formally acknowledge their deficits by 2028-29, a change from the previous allowance of ignoring such deficits due to a “statutory override.”
The OBR has indicated that these deficits could accumulate to a staggering total of £14 billion by the deadline. Earlier reports from the County Councils Network revealed that at least 59 local authorities could face total collapse when their deficits are officially recorded.
In response to these financial challenges, the government has announced plans to reform the SEND system, with proposals expected to be released in early 2026. Ministers aim to provide more support directly at the school level, ensuring that only high-needs cases receive Education, Health and Care Plans (EHCPs).
A spokesperson for the Local Government Association welcomed the government’s commitment to absorbing future SEND costs but emphasized that existing deficits remain a pressing issue. The spokesperson urged the government to consider writing off these deficits as part of the upcoming Local Government Finance Settlement.
In contrast, a spokesperson from the Department for Education refuted claims that school budgets would be squeezed, asserting that any deficits would be managed within the overall government budget. They emphasized that projections did not account for anticipated SEND reforms that the government intends to implement.
In addition to the SEND funding announcements, the recent Budget included provisions for an extra £5 million in 2026-27 to purchase new books for secondary schools and £18 million over two years to upgrade 200 playgrounds across England. The educational landscape is poised for significant changes as schools navigate these financial challenges and the government prepares to unveil reforms aimed at improving SEND support.
