Local authorities across England are raising concerns about escalating financial pressures related to special educational needs and disability (Send) support in schools. Councils project accumulated deficits will reach a record £10bn within 18 months, even after the government cleared more than £5bn in historic Send debts. The County Councils Network, which published these forecasts on Tuesday, attributed the surge primarily to rapidly growing demand for education, health and care plans (EHCPs) rather than council overspending.
The acceleration in EHCP applications—which provide formal support mandates for conditions including speech difficulties, learning disabilities, autism, and ADHD—is partly attributed to parents and schools seeking to secure support before upcoming government reforms take effect. In January, the number of young people holding EHCPs reached 718,000, representing a 12.5% increase over the previous 12 months and the largest year-on-year growth since the plans were introduced in 2014. The Fonagy report, published recently, confirmed that increases in neurodevelopmental and mental health conditions are real but cautioned that demand for services would be unsustainable without new management approaches.
Under current arrangements, accumulated Send deficits remain off council balance sheets through a special Treasury override, but this expires in April 2028. The government has agreed to cover 90% of debts accumulated through March 2026, but future debt support remains unclear. The CCN is calling for ministerial guarantees to cover 90% of future overspending, warning that anything less would constitute a “financial catastrophe” for local authorities. Several councils, including Hampshire, which is forecasting a £200m deficit for the current year, project they could face insolvency even if retaining only 10% of accumulated Send debts.
Government reforms aim to gradually shift toward more inclusive Send support in mainstream schools, potentially reducing the need for formal EHCPs. A government spokesperson acknowledged inherited pressures within the Send system and committed to setting out further deficit support details before March 2028, stating that fixing the system would require continued council support alongside ongoing investment in early specialist access and tailored local reform plans.
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