As reported by the Guardian, with councils drowning in mounting SEN deficits, the government is gearing up for a major reform to prevent financial collapse
Labour is preparing a significant reform to the special educational needs (SEN) system in English schools, as councils across the country warn of mounting debts that are pushing them to the brink of bankruptcy.
Recent analysis has revealed that most English upper-tier councils are facing severe deficits in SEN spending, with at least 12 authorities projecting deficits of over £100 million, some reaching as high as £312 million. These debts, which must be settled within the next year, have sparked urgent calls for reform.
The government is understood to be working on a white paper, expected to be published later this spring, which will outline a “complete recalibration” of the SEN and disabilities (SEND) system. Sources suggest that the proposed changes could include adjustments to existing SEND legislation, which would help alleviate the growing financial pressures on local councils.
The government is also considering a series of measures designed to reduce costs, particularly by prioritising provision within state schools and cutting reliance on expensive private specialist needs schools.
Local authorities are lobbying for even more drastic action, calling on the government to write off a £5 billion deficit forecast on SEND budgets. This deficit has been temporarily deferred since 2018 through a credit facility arrangement known as an “override,” but it is set to hit council balance sheets on March 31, 2026. The looming financial crisis could push more than 60 councils into insolvency, according to experts.
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