‘System on its knees’: Councils warn SEND crisis could hit £4.4billion a year

Local authorities raise alarm as rising SEND demand and delayed reforms push England’s support system towards breaking point
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England’s special educational needs (SEND) provision is facing what council leaders say is a looming financial crisis, with warnings that the system could reach breaking point without urgent Government action.
The County Councils Network, which represents the country’s largest local authorities, said accumulated deficits could rise to £4.4billion a year by the end of the decade.
Council leaders said ministers must stop "ducking" reforms as demand for statutory support grows significantly.
The concerns come as the Government delays a long-awaited white paper intended to set out changes to the system, pushing publication into next year.
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The postponement has fuelled political tension, with Labour MPs urging ministers not to water down children’s support provisions.
They warned of political consequences should the Government scale back existing entitlements.
Department for Education (DfE) figures highlight the level of rising need.
There are now 638,745 active Education Health and Care Plans (EHCP) across England, a rise of 10.8 per cent compared with the previous year.
New plans issued in 2024 reached 97,747, marking a 15.8 per cent increase on 2023.
The County Councils Network believes that by the end of the decade one in 20 children may require such support, placing considerable pressure on local authority budgets.

Council leaders warn England’s SEND system faces a looming financial crisis and risks collapse without urgent Government intervention
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Specialist school enrolments have risen sharply.
Around 194,000 pupils now attend specialist settings, compared with 109,000 in 2014/15.
Council spending on these placements could reach £8billion by 2030 according to CCN estimates.
The network said rising EHCP numbers are only part of the financial challenge.
Increased reliance on costly placements and private school provision is also contributing to the strain facing councils.
Families across England report long and difficult processes to secure the help their children require.
Amanda Quick, whose twelve-year-old son Ezra has ADHD and autism, said: "My mental health took a hit. I couldn't cope with all the paperwork so I ended up getting a solicitor, which is about £200 an hour."
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Labour are yet to commit to EHCP reforms
| GETTYClaire Naylor, who runs a Taunton café supporting SEND families, described her experience seeking support for her six-year-old son MJ, who has non-verbal autism.
She said: "The EHCP process became a real fight and a real battle to get those provisions put in place. We ended up having to go to court which took us over a year.
"We had to spend thousands of pounds on private reports just to prove what we already knew."
The future of EHCPs has become a central political issue.
Education secretary Bridget Phillipson has not confirmed whether the Government plans to change or replace the documents.
Campaigners and several MPs have asked ministers to guarantee that the legal entitlements remain.
Helen Hayes, Labour chair of the Education Select Committee, is among those supporting the calls to retain EHCPs.
Rachel Filmer, founder of the Save Our Children’s Rights campaign, said: "Without [EHCPs] children have no legal right to any support, so things could be catastrophic."
Some MPs believe the delay to the white paper reflects internal disagreements over possible changes to EHCPs.
One parliamentarian said the level of resistance to modifications would be "serious and significant" while warning that families’ trust in the system is already fragile.
Campaign organisations fear proposals could maintain EHCPs but reduce their specificity, potentially turning them into more generic documents offering less individualised support.
Conservative MPs have criticised the postponement of the white paper, calling it "seriously damaging" for children and families.
Tory MP Saqib Bhatti said: "SEND provision is vital to so many children and that's why we all need the Government to get its reforms right."
He said speculation about possible changes had caused "further anxiety to families that already face a struggle to get their children the support they need."
Reform UK is preparing to publish its own SEND proposals.
Deputy leader Richard Tice recently said some parents were "abusing" the system, limiting support for those with "genuine need".
His comments drew criticism from families and advocacy groups who said the remarks misrepresented the challenges faced by parents navigating the system.
A Department for Education spokesperson said the Government had inherited a SEND system "on its knees".
They added: "We're determined to put that right by improving mainstream inclusion so every child can thrive at their local school."

The Reform UK deputy leader came under fire for the comments
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Officials said they had held more than one hundred listening sessions with families and promised continued engagement ahead of reforms in the forthcoming Schools White Paper.
Schools minister Georgia Gould, who has recently taken responsibility for SEND, has begun visits to schools and community groups as part of the consultation process.
Labour MPs remain cautious.
Neil Duncan-Jordan said: "If SEND reform is about saving dough rather than improving the system then it's not headed in the right direction."
Rachael Maskell said she would not support reforms unless future budgets provide sufficient funding for schools, councils and specialist staff.
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