Funding rates for pupils with special educational needs would be around 40 per cent higher today if they had kept pace with inflation, a committee of MPs has found, warning the freeze is pushing up education, health and care plan (EHCP) numbers.
The amount of “notional” funding in a mainstream school’s budget for delivering SEND support has remained at £6,000 since the system was reformed in 2013, as has the £10,000 base rate special schools receive for each pupil.
A report out today from the All-Party Parliamentary Group for Special Educational Needs and Disabilities warned that “despite increases in funding, the system remains fragmented and under-resourced, with significant weaknesses in coordination, staffing, accountability and early intervention”.
The document warned that the “lack of inflationary increases in budgets such as the school notional funding and the special school place funding” have resulted in the “increasing and earlier pursuit” of EHCPs.
This in turn has also led to an increase in the “subsequent high needs top-up that come with them than when they were first introduced over a decade ago”.
The spending power of the notional and special school place funding has “reduced since it began in 2013.
“If we were to consider the Bank of England inflation calculator, notional funding, if it reflected inflation over that period would now be worth £8,386 in 2025, and special school place funding would be worth £13,998,” the report said.
“For a special school that had retained 100 pupils on roll for that period, the difference in their budget would be an additional £399,800 in 2025.”
The group called on the government to base funding allocations on “on robust assessments of need”, and said local areas should be empowered to “innovate”.
“To fully realise the government’s drive for inclusion in schools, core mainstream school budgets need to reflect the level of need they are now expected to support.
“For the majority of pupils with low-complexity, high-frequency SEN, core mainstream school budgets must be sufficient to meet their needs without recourse to high-needs top up funding.”
Government will set out SEND reforms in a white paper later this term. A government adviser previously said proposals to scrap EHCPs were being considered.
A report by the Institute for Fiscal Studies last week said EHCP reforms were “long overdue”. The number issued has risen by 80 per cent since 2018.
However, the study warned the changes risk turning into “welfare reforms mark 2” if they are focused on solely cutting costs.
“To avoid this, the government needs to be candid: the current system is failing many of the children it is meant to support, despite billions in additional spending and a complex framework of legal entitlements.
“A successful reform should articulate a clear vision for a system that supports all children while delivering better value for money.”
Labour MP Olivia Blake, chair of the SEND APPG which is funded by the NAHT union, said the system is in “urgent need of reform. Despite increases in funding, the system remains fragmented and under-resourced, with significant weaknesses in coordination, staffing, accountability and early intervention.”
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