Tackling The High Needs Funding Crisis

Accounting business school funding audit analysis

Amid recent revelations regarding budgetary errors and ongoing challenges in the education sector, the issue of high needs funding emerges as a critical concern. In this article, Kevin Parker delves into the complexities of high needs funding and explores potential avenues for addressing this pressing issue

Despite the Department for Education (DfE) announcing in October 2023 that it had made a £370m error in the calculation of the National Funding Formula (NFF) for the 2024-25 academic year, the ‘high needs’ element of the Core Schools Budget (CSB) for 2024-25 remains unaffected… or so we are led to believe!

  • Crumbling estates including the most recent RAAC issue
  • Partially funded pay rises at lower than inflation rates
  • The numbers of professionals leaving the sector

I think it’s fair to say the education sector has had a lot to deal with recently!

In this piece, I’m going to focus on high needs funding.

The demand for high needs funding is outweighing the budgets available to schools, resulting in deficits in the high needs block in over half of all local authorities – some with over £100m deficits. Given that the complexity of high needs services across the country, which are being demanded more and more by parents, and schools, is far greater than just a few years ago, something has to give soon.

The number of specialist provision places, and providers that can handle these increasingly complex cases is out of sync with the demand for these places. In a demand-led market, this is driving the cost of provision up, which is further impacting school budgets.

Whilst it’s recognised the government has increased funding substantially in this area in recent years, and with further policy changes on the horizon due to multiple change programmes that came out of the SEND review, it’s easy to see how demand and expectation are far outweighing available funding and capacity in the system.

So, what can we do about it?

Continue to highlight and speak out about the issue. Rather than doing what educational professionals naturally try and do, which is fix an issue (or put a green paper towel on it), it feels to me as if putting a plaster over a large hole isn’t going to work this time.

It is predicted that an extra £4.6bn high needs funding is required each year, to stop the system that supports our most vulnerable children spiralling out of control. F40, which is a group representing the lowest 42 local authority members, is campaigning for fair funding in all areas of education, including primary, secondary, early years, 16-19 and high needs up to the age of 25.

Is change realistic to expect?

£4.6bn extra equates to 0.2% of our national income. Currently we spend 4.2% of this income on the education sector, compared to 5% with other members within the ‘Organisation for Economic Co-Operation and Development (OECD).

There are some good suggestions within the Governments SEND & Alternative Provision Improvement Plan, such as mainstream schools becoming more inclusive, and the introduction of benchmarks. However, there is no mention of the additional funding and resources to make this happen.

‘Levelling Up’

In a time when ‘levelling up’ the economy has become the buzz phrase, if we want mainstream schools to be more inclusive, we need to ensure all schools are funded properly, to enable them to start interventions as soon as a concern is raised.

All staff need to be given the training and access to resources that will enable them to support children with additional needs, quickly and effectively. Of course, schools should be held accountable for their support of SEND and inclusivity, but they must receive the right tools to enable them to provide it.

The answers are not easy, and the demands on the treasury are great, but all children deserve the very best education we can give them. By doing so, we give our future workforce, the best chance to succeed in the future.

Byline to be included at Kevin’s request: All views expressed in the above article are the author’s own.

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