Half of councils warn of insolvency over SEND spending

Over half of councils have warned they face insolvency when an exemption for SEND spending expires in March 2026.

(c) Ben Wicks/Unsplash

(c) Ben Wicks/Unsplash

The Local Government Association (LGA) said 53% of councils will not be able to balance their books when a ‘statutory override' that keeps SEND deficits off their balance sheets come to an end.

Cllr Arooj Shah, chair of the LGA's Children and Young People Board, said: ‘The ending of the statutory override threatens councils' financial viability.

‘Only by taking bold and brave action in the Spending Review and writing off councils' high needs deficits can councils have the financial stability they need to ensure children with SEND get the support they need.'

Since reforms in the Children and Families Act 2014, the number of children and young people with Education, Health and Care plans (EHCPs), which outline the support a person is entitled to, has risen by 140% from 240,183 in 2014/15 to 575,973 in 2023/24.

While the LGA welcomed the £1bn funding for SEND announced in the Budget it said this would be consumed by partially plugging existing deficits.

Cllr Shah said funding was only one of the challenges facing the SEND system, adding: ‘Putting councils on a stable financial footing has to be part of a comprehensive reform plan, which focusses on boosting inclusion in mainstream schools, early years settings and colleges, ensuring they have the capacity and expertise to meet the needs of children with SEND.'

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