A report from the County Councils Network warns England’s SEND system is on track for a cumulative deficit of £17.8 bn by 2029, potentially collapsing without urgent “root and branch” reform to funding and structure
England’s SEND (Special Educational Needs and Disabilities) system is teetering on the edge of a financial catastrophe, with projected deficits approaching a staggering £18 billion by the end of the current Parliament. A new report by the County Councils Network underscores the urgency of the situation, warning that surging demand, rising costs, and a growing reliance on expensive private school placements could overwhelm local services unless the Government commits to sweeping reform.
Billions spent on SEND, yet families are still unhappy
The report found that even with councils investing £30bn more on SEND services over the last ten years, educational outcomes have not improved, and families feel increasingly hostile about the system.
In October, the UK Government delayed publication of planned reforms to the SEND system. However, the County Councils Network argues that the Government’s inaction further ‘compounds the difficult experiences for families, letting down thousands of young people and pushing councils to the financial brink’. This delay is not just a bureaucratic issue, but a real and immediate problem for families and young people in need.
The report, produced by CCN and Isos Partnership, found that:
- The dramatic rise in Education, Health and Care Plans (EHCPs) is leading to increased costs. EHCPs reached 638,000 this year, and the number of young people is on course to reach almost 840,000 by the end of this Parliament.
- Councils are increasingly relying on costly private school placements, which have risen 165% since 2015. Nearly 34,000 pupils, almost one in five of special school placements, are affected, with costs expected to reach £72,000 per pupil by 2029, compared to £10,000 in mainstream schools, pushing councils’ spending to £3.2 billion annually.
- In March 2025, the debt accrued by councils for SEND services stands at £4bn.
- The in-year deficit that councils accrue every 12 months is set to reach £4.4 billion in 2029, unless changes are made, which is why the Government must outline reforms to contain costs, alongside eliminating the total debt pile accumulated.
- Despite investing over £30 billion more over the last decade, neither educational outcomes nor family satisfaction with the system has improved.
Councils are increasingly having to divert funds from mainstream schools to support SEND services, while incurring hundreds of millions of pounds in annual costs to address high-needs deficits. This diversion of funds is not only affecting the quality of education in mainstream schools but also hindering the provision of other essential services by local authorities.
The SEND system is set up to fail
The Government has confirmed it will ‘work with councils to manage their SEND deficits’ and promised further details later in 2025.
However, the CCN argues that the Government must completely wipe out the total deficit that councils have accrued across the country. However, simply wiping out the deficits will not be enough if the issues that drive the rising costs are not addressed. The failure to tackle and curtail costs will set the system up to collapse.
Cllr Matthew Hicks, Chair of the County Councils Network, said: “Last month’s delay to the Schools White Paper was massively disappointing not only for councils, but for families too. Time is of the essence: the Government’s continuing inaction only compounds the difficult experiences for families, letting down thousands of young people whilst pushing councils to the financial brink.
“As today’s research shows, the system is heading towards total collapse in little over four years. This could mean families facing even longer waits for support, councils facing a level of demand that the system was never designed to handle, and local authorities staring down unimaginable deficits of almost £18 billion.
“Now is the time to be bold and act decisively: government cannot keep ducking reform and ministers must use the delay to set out comprehensive and long-lasting change to the system.”
“Alongside wiping councils’ deficits, this will mean tough but necessary reforms that extend beyond making mainstream schools more inclusive – including legislative change to focus EHCPs on those most in need, underpinned by reforms to the tribunal system”.
