Report Warns of Rising Special Education Costs Putting Financial Stability of Councils at Risk

July 25, 2024 TruthUSA

The report highlighted that despite a threefold increase in the costs of supporting special education needs pupils, there has been no improvement in educational outcomes over the past decade.

Local councils are facing the risk of insolvency due to a significant rise in demand for support for pupils with special education needs and disabilities (SEND), as revealed in a recent report.

By 2026, councils are projected to spend £12 billion on SEND services—up from £4 billion ten years ago—yet they will still encounter a £5 billion “funding black hole” as a result of high demand, according to a report by Isos Partnership published on Thursday.

In 2014, reforms were introduced to enhance support for children through the implementation of Education, Health, and Care Plans (EHPs), detailing the needs and support for children with SEND funded by local authorities.

The report, commissioned by the Local Government Association (LGA) and the County Councils Network, indicated that the number of children receiving EHPs more than doubled, increasing from 240,183 in 2015 to 575,973 in 2023/2024.

Additionally, there are around 1.2 million children in schools requiring SEND support, falling below the statutory level for EHCP eligibility.

Due to rising costs surpassing budgets, councils have been running deficits which have been excluded from their balance sheets through temporary statutory overrides expiring in March 2026. The report warned of a financial crisis for local governments, as there is no clear solution to settle the money already spent or reduce future expenditures.

A press release from the LGA accompanying the report indicated that if the statutory override ceased tomorrow, “one in four councils surveyed for the report said they would become insolvent within a year or less, with half stating they would cease to be solvent within three years or less.”

Attainment for SEND Has Not Improved

The report also noted that despite the tripling of SEND spending, the outcomes for special needs pupils have not shown improvement.

“There is limited evidence to indicate that increased identification of SEND, more placements in specialized provision, and higher expenditure have resulted in better outcomes for children, young people, and families,” the report stated, highlighting a flatline or decline in performance across key educational milestones for children with EHPs over the past decade.

By the end of primary school in 2022/23, only 8 percent of pupils with EHPs achieved the expected level in reading, writing, and mathematics, mirroring the proportion achieved in 2016/17.

At the secondary school level, only 30 percent of young people with EHPs achieved Level 2 (e.g., GCSE or equivalent) by age 19, compared to nearly 37 percent who met this benchmark in 2014/15.

Calls for Mainstreaming More SEND Pupils

Councils emphasized the urgent need for reform within the SEND system, advocating for the Labour government to fulfill its manifesto promise and endeavor to mainstream more pupils with special needs into community schools.

Since 2014/2015, there has been a 60 percent rise in children with EHPs attending state-run special schools and a 132 percent increase in those enrolled in independent special schools.

Such placements incur an average annual cost of £25,000 for state-run schools and £58,500 for private schools, in contrast to £8,200 for supporting a child in a mainstream school.

Yet, the authors acknowledged that “mainstream schools and settings currently lack the necessary resources, capacity, or support to include children and young people with SEND to the fullest extent possible.”

Education Secretary Bridget Phillipson responded to the findings, affirming that the new Labour government is actively working on educational reforms to assist special needs children, including enhancing early interventions.

“We will rebuild parents’ confidence that their child will receive the necessary support in a mainstream school if deemed appropriate. Moreover, there will always be a place in special schools for children with the most complex needs,” added Ms. Phillipson.

Tribunal Disagreements

The report further highlighted the burden of tribunal disputes in the current system, where parents challenge local authorities’ decisions regarding special education needs provision.

The report proposed that a reformed SEND statutory framework should incorporate new independent, non-judicial mechanisms to address disagreements in decision-making. It suggested focusing the SEND Tribunal’s efforts on resolving disability discrimination cases.

Disability advocates expressed apprehension that altering the disputes system could result in the removal of parents’ legal rights. The Disabled Children’s Partnership posted a response to the report on X, signed by numerous charities including Mencap, Sense, and the National Autistic Society, cautioning that changes to the arbitration system “might lead to more children and families being let down, as these rights serve as a crucial safeguard when all else fails.”

Recent government data revealed that in 98 percent of cases, tribunals ruled in favor of families over local authorities.

PA Media contributed to this report.

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