Send System Overhaul Urgently Needed as Councils Face Financial Collapse
The government is poised to release a long-awaited education white paper in the coming weeks, outlining proposals to reform the special educational needs and disability (Send) system. This move comes amid stark warnings from council leaders that rising Send costs could effectively bankrupt eight in 10 English local authorities.
Mounting Deficits Threaten Council Solvency
Local authorities have called on ministers to write off Send deficits accumulated over recent years, which are forecast to reach £14bn by 2028. The Local Government Association (LGA) reports that 95% of top-tier councils are operating under Send deficits, with four-fifths forced to cut services or take out loans to cover daily overspends.
One council, Bournemouth, Christchurch and Poole (BCP), has requested special permission to raise council tax by 7.5% from April, exceeding the 4.99% limit, to finance its £184m Send deficit, expected to grow to £380m by March 2028. BCP council has been technically insolvent since April 2025, when its Send deficit surpassed its financial reserves, and plans to borrow £95m over the next year to bridge funding gaps.
Imminent Crisis as Accounting Override Ends
By the end of March 2028, an accounting "override" that allows councils to keep Send deficits off balance sheets will expire. The LGA survey indicates that if deficits are not cleared by then, 79% of councils will become effectively insolvent overnight. Even with debt clearance, ongoing spending is projected to exceed budgets in 95% of council areas, with a funding gap estimated at £6bn in 2028-29 by the Office for Budgetary Responsibility.
Guardian analysis reveals the scale of these deficits: Hampshire County Council projects a £706m deficit by March 2028, West Sussex County Council £414m, and Suffolk County Council £250m.
Reforms Politically Fraught Amid Rising Needs
The Send reforms are politically sensitive, with ministers aiming to curb spending growth while avoiding backlash from backbenchers, parents, and charities concerned about diluting children's rights. The LGA notes that despite increased investment and higher assessment rates, there is no clear evidence of improved outcomes for children with Send.
A key issue is the rapid growth in education, health and care plans (EHCPs), which guarantee support for pupils. Numbers have surged from 240,000 in 2014 to about 640,000, driving much of the spending increase. Amanda Hopgood, chair of the LGA's children, young people and families committee, stated: "Councils are committed to supporting every child and young person to achieve their potential, but the current system leaves many buckling under the strain."
Debt Write-Offs and Fairness Concerns
It remains uncertain whether the government will wipe historical Send debts without guarantees from councils to reduce costs, such as shifting provision to mainstream schools and reducing reliance on private specialist schools. A no-strings-attached write-off raises fairness issues, as a Guardian investigation found that 24 of the 32 councils with deficits over £50m are in England's wealthiest areas.
The government has been approached for comment on these pressing matters, highlighting the urgent need for systemic reform to prevent widespread council insolvency and ensure sustainable support for children with special educational needs.
