Local authorities across England are raising alarms about rapidly accumulating deficits tied to special educational needs and disability services, with projections indicating debts could reach £10 billion within the next 18 months. This anticipated shortfall comes even after the government recently cleared more than £5 billion in historic Send debts owed by councils, highlighting the accelerating pace of new financial obligations in this area.
The surge in demand stems largely from a sharp increase in applications for education, health and care plans, which provide mandated support for conditions including autism, ADHD, speech difficulties, and learning disabilities. Officials attribute part of this acceleration to parents and schools rushing to secure formal support before government reforms to Send provision take effect. Data shows that in January, the number of young people with such plans reached 718,000, representing a 12.5 percent increase over the previous 12 months—the largest year-on-year rise since the system’s introduction in 2014.
The County Councils Network has called on ministers to guarantee that future Send debts will be covered by the government, warning that without such assurance, some authorities face potential bankruptcy. Several councils are already projecting individual overspends exceeding £100 million for the current year, with Hampshire forecasting a £200 million deficit alone. The network emphasized that if councils are forced to absorb these costs, the consequences will extend beyond local government finances to affect taxpayers and frontline service delivery.
A government-commissioned report released recently confirmed that increases in mental health and neurodevelopmental conditions are genuine and causing distress, but warned that resulting demand for services would become unsustainable without new approaches. Ministers have committed to covering 90 percent of Send debts accumulated through March 2026, but have not yet clarified how much future overspending they will address. A government spokesperson indicated that further details on deficit support would be provided before March 2028, when current temporary accounting arrangements are scheduled to expire.
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