SEND Spending Skyrockets by 60% to Nearly £14 Billion, Report Warns
A new report from the Policy Exchange think tank has uncovered a dramatic escalation in local authority expenditure on support for pupils with Special Educational Needs and Disabilities (SEND). Town hall spending in this area has surged by 60 per cent in recent years, reaching close to £14 billion. The study, which has garnered backing from two former education secretaries, sounds a stark alarm about the financial sustainability of the current system.
Rising Numbers and Soaring Costs
The analysis indicates that approximately one in five pupils is now classified as having SEND. In real terms, spending ballooned by over £5 billion, climbing from £13.6 billion in the 2018/19 financial year to the present level. Remarkably, half of all new funding allocated to schools since 2015 has been directed towards SEND support. The report projects that without significant systemic reform, this expenditure could surpass £18 billion by 2028.
Geographic Disparities in Funding Increases
Despite clear evidence linking higher SEND prevalence to areas of deprivation, the report identifies a counterintuitive trend. Spending increased fastest, by 65 per cent, within the most affluent half of local authorities. By comparison, the 50 per cent most deprived council areas saw a 51 per cent rise. This discrepancy suggests resources may not be optimally targeted towards those with the greatest need.
Around one in twenty children in England now have needs severe enough to require an Education, Health and Care Plan (EHCP). These legal documents, which outline the support a young person with SEND is entitled to, have seen issuance numbers nearly double, from 353,995 in 2019 to 638,745 as of January 2025.
Mounting Debts and Council Insolvency Risks
The financial strain is manifesting in substantial deficits for local authorities. By March 2025, councils in England had accrued £4 billion in SEND-related debts. Researchers project this figure could escalate to a staggering £17.8 billion by 2029. A recent survey of town halls revealed that 79 per cent of councils fear they will be unable to set a balanced budget in 2028. This is the year the government plans to transfer SEND spending and deficits onto the national balance sheet.
Case Studies and Specific Cost Drivers
The report highlights extreme examples of spending growth. Eleven councils witnessed SEND spending increases exceeding 100 per cent over six years. The largest real-term percentage changes occurred in:
- The Isles of Scilly (235 per cent)
- Herefordshire (161 per cent)
- Worcestershire (130 per cent)
Spending on SEND transport, including home-to-school travel, more than doubled in 42 councils, a trend likely driven by the rising number of EHCPs. Calderdale Council experienced a 385 per cent surge in this category. Furthermore, administrative spending on SEND schemes grew by 300 per cent in a quarter of local authorities.
Expert Calls for Urgent Reform
Former Labour Education Secretary Ruth Kelly, who endorsed the report, stated: ‘Dramatic spending increases on SEND have placed an unsustainable burden on local authorities. The courageous decision to bring SEND spending and deficits onto the Government balance sheet from 2028 necessitates a clear plan to make the new funding system sustainable.’
Ex-Labour Education Secretary Baroness Morris of Yardley added: ‘The increased expenditure in recent years is greatest in areas of least deprivation which adds to the evidence for the need for radical change.’
Zachary Marsh, Research Fellow in Education at Policy Exchange and author of the report, provided critical insight: ‘EHCPs are driving spending in wealthy council areas, with 9 out of 10 local authorities with the highest number of applications last year amongst the wealthiest 50 per cent of councils. The Government must grip the system and target resources earlier and on those who need it most – rather than those sharp-elbowed enough to work the system.’
The report concludes with a firm directive: ‘The Government must not delay in bringing forward its long-trailed reforms to the SEND system.’ The findings paint a picture of a system under severe financial pressure, requiring immediate and decisive action to ensure support reaches the pupils who need it most while safeguarding the fiscal health of local government.
