The government has pledged write off 90 per cent of councils’ historic SEND deficits – estimated to be worth £5 billion.
The Ministry of Housing, Communities and Local Government said the deficits on councils’ dedicated schools grant up to 2025-26 will be written off through “the largest intervention on SEND deficits ever”.
All local councils with a SEND deficit will be eligible to receive a “high needs stability grant” in the autumn, subject to securing approval of a “local SEND reform plan”.
Schools Week revealed last week how government had quietly asked councils to begin working up these plans, ahead of the delayed schools white paper.
MHCLG said the intervention will “will protect councils’ ability to support children and young people with SEND, alongside delivering wider services and tackling deprivation.
“This is a first step. The government will set out full plans in the schools white paper, which will outline reforms to create an inclusive education system that enables all children to achieve and thrive, while bringing about financial sustainability for councils.”
In funding documents, it added: “Resolving deficits accrued to the end of 2025-26 could cut the cost of financing those existing deficits by an estimated £300 million by 2027-28.”
Support ‘not unlimited’
Councils had been waiting for news on what would happen to historic deficits, after government announced SEND cost pressures would sit on its own books from 2028.
The Office for Budgetary Responsibility had warned historic deficits could reach £14 billion by then and pose a “significant fiscal risk”.
Deficits have been kept off councils’ main books by a statutory override for many years. The budgeting mechanism effectively prevents councils from going bust.
The override is due to end in 2028, at which point councils will have to meet the cost of any leftover deficits not covered by the government write-off.
MHCLG also said SEND reform will take time to “fully embed” and councils will need further support.
They added: “For deficits that arise in 2026–27 and 2027–28, local authorities can expect
that we will continue to take an appropriate and proportionate approach, though it will not be unlimited.
“Whilst recognising the challenges of the current system, it remains vital that every
authority provides appropriate high-quality support for children and young people’s education whilst ensuring robust controls as we work together to reform the SEND system.
“We will support local authorities and their partners to do this through their local SEND reform plans.”
Safety valve programme ‘to end’
A technical note published today states that the controversial £1 billion safety valve programme “will end”.
The government had previously said it would make no new agreements, which involved the most cash-strapped councils making sweeping SEND reforms in exchange for extra government funding.
The note said: “Given this new approach to DSG deficits, which is more generous than the support most local authorities would have received through safety valve agreements, the programme will end.
“No local authority will be disadvantaged by its participation: every safety valve local authority will receive at least the same amount of grant through this arrangement as they would have through Safety Valve.
It added that “any local contributions already made will count as part of the 10 per cent remaining deficit that will fall to local authorities to cover, meaning no safety valve local authority will be expected to contribute more”.
Having been involved in both a personal (2 children with high needs, one with EHCP – 2 years fighting to secure the obviously needed support) and professional capacity for around 40 years, I am fully aware much of the SEND financial issues are not how they appear.
There are so many unscrupulous ‘companies’ callously operating highly profitable ‘Special Education and Care’ businesses at the expense of high needs kids, families, education and care staff it beggars belief that neither Ofsted nor any other inspectorate has even noticed it.
Likely too pre-occupied applying the hyper-stress of ridiculously misaligned standards onto the fantastic staff who actually already know what they’re doing and what to do.
I can’t think why it hasn’t been noticed that large proportions of the SEND budget end up in the pockets of vested interests.
Hidden in plain sight? I think clear and
obvious in plain sight and simply checked off as ‘acceptable.’
Thousands of GBP to ‘care-educate’ individual children with sub-standard and often under-qualified staff considering the specialism required. Baby-sitting passing as ‘education.’ If just one-tenth of these budgets were properly, creatively and professionally allocated (See ANY article, book, speech, communication by Sir Ken Robinson) the picture would be so much brighter.
So, so sad for these kids, their families, schools, communities and cheated futures.
Let’s not talk about it though, eh? Too close to some vested bones, I suspect.