The SEND Funding Situation

WHY ARE COUNCILS WARNING THAT DEBTS COULD REACH £10 BILLION?

Behind every discussion about SEND provision is a question that is becoming increasingly difficult to ignore: where is the money going to come from?

For years, families have spoken about difficulties accessing support, schools have raised concerns about stretched resources and local authorities have struggled to balance the cost of meeting children's needs. Now, the financial pressures facing the SEND system are becoming increasingly visible, with warnings that local authority debts in England could reach extraordinary levels over the next few years.

In October 2026, reporting highlighted warnings from English councils that SEND-related debts could reach approximately £10 billion by 2028. The figures are particularly concerning because the Government has already agreed to cover 90% of more than £5 billion in historic SEND deficits accumulated up to March 2026.

Yet despite this intervention, councils are warning that rising demand could see those debts build up again.

To understand why this is happening, we need to look at the growing number of children and young people who require additional educational support. Education, Health and Care Plans are legally binding documents designed to identify a child's needs and specify the provision required to meet them. The number of children and young people with EHCPs has increased substantially, reaching approximately 718,000 in January 2026, representing a 12.5% rise over the previous year.

Alongside this, a further 1.3 million young people have identified special educational needs without an EHCP.

These figures demonstrate the scale of demand facing the system. However, it is important to remember that every number represents a child or young person who needs appropriate support to access education and achieve their potential.

The rising cost of SEND provision is influenced by several factors. Some children require specialist school placements, while others need speech and language therapy, occupational therapy, communication support, specialist equipment or additional staffing. Transport can also represent a significant expense, particularly when suitable specialist provision is not available close to home.

There is also a growing reliance on independent specialist placements in areas where local provision is insufficient. These placements can be considerably more expensive, particularly when children have to travel long distances to access an appropriate setting.

For families, the financial debate can sometimes feel disconnected from the reality of their experiences. Parents are not applying for EHCPs because they want additional paperwork. They are often doing so because they have exhausted other options and need a legal framework to ensure their child receives the support they require.

The proposed SEND reforms have also introduced another layer of uncertainty. Some families and schools appear to be seeking EHCP assessments now because they are worried about how the system may change in the future. This has contributed to concerns about an increase in applications before the new arrangements are introduced.

The Government argues that its reforms will improve early intervention and strengthen mainstream provision, reducing the need for some children to require an EHCP. However, the important question is whether schools will receive sufficient funding and specialist support to make this possible.

A system that identifies needs earlier but cannot afford to meet them will not solve the problem.

There is also a wider impact on local authority services. When councils are under pressure to meet statutory SEND responsibilities while managing substantial deficits, difficult decisions may have to be made elsewhere in their budgets. This creates a wider risk for communities, not just for families directly accessing SEND provision.

The real challenge is finding a sustainable funding model that recognises the complexity of children's needs and provides the resources required to meet them. That means investing in early support, developing local specialist provision, improving access to professionals and ensuring mainstream schools are properly equipped.

It also means recognising that the cost of failing to support children can be far greater in the long term. Children who are unable to access education, who experience prolonged periods of distress or who leave school without the skills and confidence they need may require additional support throughout adulthood.

The SEND funding crisis is not simply a debate about council finances. It is a question about the kind of education system and society we want to create.

Families should not have to fight for support because the system is struggling financially, and children should never be left waiting for provision because their needs are considered too expensive.

A sustainable SEND system must be properly funded, properly planned and built around the needs of the children it exists to serve.