59 councils warn they will go bust when Send deficits no longer kept off books
Council Send debts are projected to hit a cumulative deficit of £17.8 billion by 2029
The special educational needs and disabilities (Send) system faces “total collapse”, it has been warned, as 59 councils say they would go bankrupt overnight when deficits are no longer kept off their books.
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The County Councils Network (CCN) has warned the Government “cannot keep ducking reform”, and must use the delay to the Schools White Paper to set out major changes to the Send system.
Council Send debts are projected to hit a cumulative deficit of £17.8 billion by 2029, CCN research conducted with Isos Partnership found.
This would equate to debt of nearly £1,000 for every child and young person in England, or more than what councils spent on children’s social care last year, CCN said.
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Councils have been able to keep high needs deficits off their balance sheets using an accounting arrangement called a statutory override.
This had been due to end in 2026, but was extended in the summer until March 2028.
More than half (59) of the councils surveyed by CCN said they will go bankrupt overnight when the statutory override ends in 2028.
CCN is calling for the Government to completely wipe total Send deficits to give councils a clean slate for system reform.
The research shows “the system is heading towards total collapse in little over four years,” Councillor Matthew Hicks, chairman of the CCN, said.
“This could mean families facing even longer waits for support, councils facing a level of demand that the system was never designed for, and local authorities staring down unimaginable deficits of almost £18 billion,” he added.
“Now is the time to be bold and act decisively: Government cannot keep ducking reform and ministers must use the delay to set out comprehensive and long-lasting change to the system.”
Councils have been facing spiralling high needs spending over the last decade.
The number of education, health and care plans (EHCPs), which are legal documents setting out support required for young people with Send, has risen 80 per cent since 2019 to hit 638,745 as of January this year.
Local authorities have increasingly been having to rely on private special school provision to meet needs of young people with Send, because of a lack of effective provision in mainstream schools.
Councils are on course to be spending £3.2 billion a year on private school placements for young people with EHCPs by 2029, CCN found.
Because of pressures on high needs spending, councils are increasingly saying they have had to take money from budgets for mainstream schools.
Last year, £150 million was rerouted, largely from mainstream schools, to high needs budgets, the report found.
CCN recommends the Government invest in things such as educational psychologists and preventative support to help build capacity in mainstream schools to support children with Send.
There should be legislative change to focus EHCPs on those most in need, CCN added.
The Government had been expected to set out its reforms to the system this autumn as part of the Schools White Paper.
However, Education Secretary Bridget Phillipson announced this would be delayed until 2026 to allow more time to test reform proposals.
A Department for Education spokesperson said: “This Government inherited a Send system on its knees, with thousands of families struggling to get the right support.
“We’re determined to put that right by improving mainstream inclusion so every child can thrive at their local school.
“We’ve held over 100 listening sessions with families and will continue engaging parents as we deliver reform through the Schools White Paper.
“We’re already making progress – with better training for teachers, £740 million for more specialist places, earlier intervention for speech and language needs, and Send leads in every Best Start Family Hub.”