The government will outline how it intends to plug an estimated £6 billion shortfall in SEND funding at the next spending review in 2027, it was announced yesterday.
It follows an announcement last week that it would take on deficits caused by SEND spending from local authorities by 2028, and that school budgets won’t be affected.
It was not made clear how this would be paid for, and the Office for Budgetary Responsibility warned this could leave the Treasury with an annual £6 billion shortfall.
Ministers have insisted the money won’t be taken from the core schools budget but faced further questions yesterday over which part of the government’s budget it will come from.
Speaking in Parliament yesterday, Bridget Phillipson said: “I could not be more clear. This will come from across government budgets, and it is a matter for the next spending review.”
There isn’t £6 billion down the back of the sofa
However, it remained unclear where the money to plug the shortfall will be found.
Laura Trott, the shadow education secretary, told the Commons yesterday that the June spending review “has set departmental budgets for the year in question. There isn’t £6 billion down the back of the sofa.
“So unless she can say where else this £6 billion is coming from, and clearly she just failed to do so, it must be coming out of schools or SEND.
“So let’s try again. Will she be straight with teachers and parents and her own back benchers and tell us what is being cut? Is it SEND or is it schools?”
Phillipson responded that the OBR had “published projections about SEND costs alongside the budget”.
“They were hypothetical illustrations which the right honourable lady would know if she went away and read the OBR document,” she said.
“The Treasury has been clear that the costs will be covered across overall budgets.”
A white paper will set out government reforms of the SEND system earlier in the new year.
