London Daily

Focus on the big picture.
Tuesday, Sep 08, 2026

Councils in England facing funding gaps plan to cut special needs support

Councils in England facing funding gaps plan to cut special needs support

Cash-strapped local authorities, dealing with years of accumulated shortfalls, are having to reduce education and care packages
Councils in England, facing a funding shortfall of more than half a billion pounds for educating children with special needs, are planning spending cuts and service reviews, according to figures compiled by the Observer.

Campaigners fear children could lose some of their support as local authorities try to clear yawning historical deficits, with government rules stopping them using other reserves to help to fund the special educational needs and disabilities (Send) system.

Figures covering 131 of England’s 151 “upper tier” local authorities show the combined forecast “overspend” on high needs budgets comes to £503m for the 2020-21 financial year.

The figures were obtained from freedom of information requests and council documents, and show forecasts made late in the financial year.

Surrey council confirmed it overspent its high needs budget by £35m in 2020-21, and is forecasting a further overspend of £24m in 2021-22. Kent forecast an overspend of £35.8m in 2020-21, and 14 other councils forecast overspends of £10m to £18m.

Cambridgeshire has a forecast deficit of £13.7m in 2020-21. It is planning to reduce top-up funding for Send children in mainstream schools, as well as launching a variety of reviews covering individual support packages. A council spokesperson said: “In addition to the continuing rise in the number of education, health and care plans (EHCPs) being allocated to those in need, we are seeing an increase in the complexity of need among our children and young people. Our funding allocation is not sufficient to adequately match the increase in demand.”

Cheshire East is planning to encourage older students with EHCPs to take up “supported internships”, which normally last a year and include unpaid work placements of at least six months, as an explicit way of reducing the council’s support costs and shortening the time for which it has to fund EHCPs.

“You can expect councils to look much more closely and engage in more sharp practice around when and how to cease post-16 placements,” said Tania Tirraoro, co-director of campaigning website Special Needs Jungle. “Because long-term structurally that’s a large part of the increase in costs.”

Many councils are increasing the number of local special school places to cut costly placements outside the area. Annual reviews of EHCPs are also set to increase. “The strong implication from some of these plans is that the local authority will be seeking to cease to maintain EHCPs more aggressively than they previously have been,” said Tirraoro.

The Send system has been engulfed in a crisis of underfunding since 2014, when the Children and Families Act increased the range of ages of children and young people with Send that councils had to support – but the government didn’t provide the necessary money.

The government is now sharply increasing high needs funding – by £780m in 2020-21, with a further £730m in 2021-22 – but while overspends have fallen since last year, they remain doggedly high.

“The additional funding is not sufficient,” a Surrey council spokesperson said. “The 2021-22 increase for Surrey was 9%. However, as demand for EHCPs is increasing at 10%, it does not address the historic shortfall. To put this in context, demand and inflation is likely to lead to increased costs of £34m compared with the grant increase of £16m.”

Surrey now has a high needs deficit of more than £80m, accumulated over successive years. It is not among the five councils to have reached a “safety valve” agreement with the government that will provide additional funding in return for under taking certain savings measures.

Gillian Doherty, of campaign group Send Action, said: “Early intervention and the strengthening of mainstream provision can only happen if there is serious and sustained investment in support. What we’re actually seeing is the opposite, with the Department for Education using safety valve agreements to coerce councils into making cuts in return for financial bailouts, for example by driving mainstream schools to meet a higher level of need in a more cost effective way while miraculously maintaining the quality of provision.”

A spokesperson for the department said: “We recognise that pressures on high needs have contributed to some councils facing large deficits on their dedicated schools grant. We are working through a range of means to tackle these, which includes a targeted intervention programme for those local authorities with the highest deficits to rapidly improve their high needs systems and make them more sustainable long-term.”
Newsletter

Related Articles

0:00
0:00
Close
Counter-Terrorism Police Lead Salford Investigation After Two Teenagers Charged
UK Rejects Financial Reparations for Transatlantic Slavery
UK and Egypt Step Up Diplomacy Over Escalating West Bank Tensions
UK Pauses Council Reorganisation Across Four English Counties
Jaguar Land Rover Plans 4,000 Job Cuts in Major UK Restructuring
UK Unveils Planning and Regulatory Overhaul to Speed Infrastructure and Economic Growth
University of Bristol Opens £500 Million Innovation Campus
Families Give Evidence to Independent Review of Sussex Maternity Failures
Sweden Confirms Deportation of 458 British Citizens Over Post-Brexit Residency Rules
UK Launches £3 Million Challenge for Long-Duration Energy Storage
Reform UK Proposes £100 Billion in Spending Cuts and Brownfield Deregulation
Andy Burnham Warns Macron That EU Procurement Rules Could Hurt British Steel
Andy Burnham Faces Major Decision on Future North Sea Oil and Gas Drilling
SEND Support in England Projected to Reach One in 10 Pupils
England’s Housing Courts Struggle With Surge in No-Fault Eviction Cases
Violent Clashes Erupt in Portsmouth During Protest Against Asylum Processing
Three-Quarters of NHS Emergency Staff Report Regular Violence or Aggression
UK Considers Converting Female Prison Space for Male Inmates as Overcrowding Worsens
UK House Prices Record First Annual Decline in Nearly Three Years
UK Government Reassesses Policy Toward Israel Amid Calls for Diplomatic Shift
Reform UK Faces Police Scrutiny Over Alleged Foreign Donations Scheme
University of Bristol Opens £500 Million Temple Quarter Enterprise Campus
Online Bookmakers Accused of Privacy Breaches Through Cookie Consent Practices
Health Campaigners Urge UK Government to Abandon U.S. Pharmaceutical Agreement
Three-Quarters of UK A&E Staff Report Regular Violence or Aggression
Far-Right Demonstrations Target Portsmouth as Small-Boat Crossings Fuel Tensions
UK Records Hottest Summer on Record After Severe Heatwaves
UK Travellers Face Renewed EU Border Delays as Temporary Flexibility Ends
UK Rejects Calls to Pause AI Data Centre Expansion Despite Energy Concerns
UK Defence Figures Push for 3% Spending Target Amid Falklands Concerns
England Faces Rising Financial Pressure as Special Educational Needs Plans Surge
Metropolitan Police Consider Reform UK Probe Over Overseas Donations
Keir Starmer to Leave Parliament, Triggering By-Election
UK Treasury Weighs Windfall Taxes on Banks and Oil Companies Amid Bond Market Turmoil
Jaguar Land Rover to Cut Thousands of Jobs as UK Government Rules Out Bailout
OpenAI Unveils GPT-6 and Says: "We May Already Have Reached AGI"
Congressman Accused Andrew of Sex Crimes in the United States
Donald Trump: "I'm Glad Harry and Meghan Left the United States"
Spicy Food Is Linked to Lower Death Risk — but It Is Not a Miracle Cure
AfD Enters Saxony-Anhalt Election at 41% in Historic Test for German Politics
Gen Z Turns to Investing as America's First-Home Dream Moves Further Out of Reach
Thousands Join London March Calling for Tighter Abortion Restrictions
Institute of Directors Says Tax and Regulatory Uncertainty Still Weighs on UK Investment
Bank of England Faces Rate Dilemma as Weak Growth and Persistent Inflation Raise Stagflation Risks
Masked Anti-Immigration Protesters Block Roads to Port of Dover
Prime Minister Andy Burnham Sets Out Devolution and Re-Industrialisation Agenda
British Chambers of Commerce Forecasts UK Growth of Just 1% Through 2027
UK Government Advances Bill to Tighten Rules on Overseas Political Donations
Nigel Farage Faces Scrutiny Over Alleged Reform UK Donation-Law Evasion
Thousands Join Anti-Abortion March Through Central London
×