The organisation representing local authorities has again called for an end to education, health and care plans (EHCPs) in a bid to stop councils going further into debt due to mounting SEND costs.
According to a new survey from the Local Government Association, eight in 10 local authorities in England have warned they will become insolvent because of mounting debts caused by supporting SEND pupils.
It said cost pressures reflect a sharp rise in need for support, and the growing numbers of children receiving education, health and care plans (EHCPs).
The LGA is calling for reforms to SEND, which will be spelled out in the Schools White Paper being published this month, to reduce or withdraw children’s entitlement to EHCPs so that councils won’t be legally required to meet their needs.
Campaigning groups have voiced strong opposition to the suggestion, which has been widely mentioned ahead of publication of the White Paper, claiming it will weaken or remove children’s legal rights to support.
Councillor Amanda Hopgood, chair of the Local Government Association’s Children, Young People and Families Committee, said: “The Schools White Paper must deliver brave and bold reform where more children are able to get the support they need in a mainstream school, without having to go down the route of needing a statutory plan.”
Balancing budgets
As things currently stand, councils can maintain overspends on special needs costs that exceed the available budgets through a temporary accounting mechanism called “statutory override”. An estimated 95% of councils have these deficits.
However, with the override due to end in March 2028 and these deficits moving to councils’ balances, 79% said they would not be able to set balanced budgets, which risked further undermining services for children and families.
The Office for Budget Responsibility estimated that cumulative overspends will have reached £14 billion by then.
Moreover, the LGA said that “despite record levels of investment and the high rate of assessment and identification of needs, there is no clear evidence that outcomes for children with SEND have been improving”.
The LGA is urging the Government to write-off councils’ high needs deficits, after councils indicated that the removal of deficits without writing-off debt would mean they would continue having to overspend and risked going back into the red.
Hopgood added: “There is a widely held consensus that the SEND system is broken and not working for children, their families and councils.
“Councils are committed to supporting every child and young person to achieve their potential and clearly what is important is that children and young people get the support they need.
“But under the current system, the rise in support need has left many councils buckling under the strain.
“The huge costs in providing support are threatening most councils with insolvency.
“This is why we are urging government to write off councils’ high needs deficits in the final Local Government Finance Settlement.”
Campaigners have been contacted for comment.
