SEND crisis: Vast majority of councils warn of insolvency and call for reform amid huge deficits - London Business News | Londonlovesbusiness.com
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SEND crisis: Vast majority of councils warn of insolvency and call for reform amid huge deficits - London Business News | Londonlovesbusiness.com
"Eight in 10 councils warn they will become insolvent over mounting deficits related to the cost of supporting children and young people with special educational needs and disabilities, a new survey by the Local Government Association suggests. The LGA said cost pressures reflect a sharp rise in need for support. There were nearly 640,000 Education, Health and Care Plans as of January 2025. The number has increased each year since their introduction in 2014."
"Councils are firmly committed to upholding the entitlements of all children and young people with SEND but are clear that the system needs urgent reform so children and young people receive the high quality support they need and experiences are improved for families. Councils are currently able to keep high needs deficits - an overspend where SEND costs exceed the budget available - off their main balance sheets through a temporary accounting mechanism known as a "statutory override"."
Eight in ten councils expect to become insolvent because of mounting deficits from supporting children and young people with special educational needs and disabilities. Cost pressures reflect a sharp rise in need for support, with nearly 640,000 Education, Health and Care Plans as of January 2025 and numbers rising since 2014. Ninety-five percent of councils have high needs Dedicated Schools Grant deficits. A temporary accounting 'statutory override' currently keeps those deficits off main balance sheets but ends in March 2028; 79 percent of councils say they will be unable to set a balanced general fund budget for 2028/29 without debt relief and system reform.
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