The Special Educational Needs and Disabilities (SEND) deficits in England are set to increase by almost £2 billion over the coming year. This shocking trend toward insolvency is driving many councils right to the precipice of doom. Right now, SEND deficits amount to £3.4 billion, with forecasts that they will jump to £5.2 billion within the next year. Many councils are struggling with huge financial challenges. At least 18 of them have unequivocally announced that they would go bankrupt without federal assistance.
The average forecast accumulated deficit across all councils will climb to £40 million by March 2026. This fiscal time bomb will officially impact 112 councils who expect to see their severely high needs deficits grow larger over the next year. Council’s own estimates indicate that tens of thousands more are at risk of financial ruin if things don’t turn around. Previously, in 2020-21, no fewer than 101 English councils spent more than their assigned Send budgets. Of these, 18 councils were over their annual allocations by over £30 million.
The former government’s policies drove up education and healthcare plans (EHCPs) at lightning speed. So the cause of Send deficits blowing up is largely due to these alterations. The provisions contained within these plans give children and young adults up to the age of 25 legal rights. They should be funded by local councils to help with the likes of autism and speech and language disorders. In response, Tory ministers rolled out a statutory override that temporarily removed Send deficits from council balance sheets. This measure only lasts through March 31, 2026. As such, these debts will get transferred back to town hall balance sheets, further intensifying the fiscal pressure on councils.
“The deficits are pushing councils all over England to the financial brink. The clock is ticking, and councils are being left in limbo with significant uncertainty over the future of services,” – William Burns, social care policy adviser for the Chartered Institute of Public Finance and Accountancy (Cipfa)
Risk of insolvency puts tremendous pressure on councils. They are having to deal with multibillion-pound deficits after years of overspending on special educational needs provision. When councils do declare a de facto bankruptcy, the decisions are extremely painful. Otherwise, they will have to make deep cuts across districts within the local schools and across all local public services.
“The evidence is clear that the Send system has been on its knees for years – with too many children not having their needs met and parents forced to fight for support.” – A Department for Education spokesperson
Admittedly, the Department for Education have recently acknowledged that there are systemic issues with the SEND framework. They’re currently working on a Plan for Change to address these challenges head on. Our plan will reform the SEND system, reverse the loss of confidence in families around the country, and provide these vital improvements.
“It will take time, but as part of our Plan for Change we are thinking differently about what the Send system should look like, to spread opportunity, restore the confidence of families up and down the country and deliver the improvement they are crying out for.” – A Department for Education spokesperson