Local authorities in England fear their deficits in special educational needs (SEN) have become “unmanageable” with a funding shortfall estimated to be £2.4bn in 2022-23, according to a new analysis by the County Councils Network (CCN).
CCN said the deficit was a result of rising demand for support from young people and legislative changes in 2014, which increased the eligibility of Education, Health and Care Plans (EHCPs). Since the amendment, the number of EHCPs has risen by a third from 354,000 to 473,000.
The analysis outlined that the SEN deficit is six times higher than levels in 2018 and, if nothing changes, the figure could rise to £3.6bn in 2025.
Cllr Keith Glazier, CCN children’s services spokesperson, said: “Over the last five years, councils have not shirked from taking hard decisions on SEN support in order to try and make services financially sustainable, but we are swimming against the tide.
“Rising demand each year has meant our deficits have increased six-fold since 2018.
“With councils’ deficits now at £2.4bn, many council leaders believe the scale of their debts are unmanageable.”
The shortfall comes as the government looks to reform the SEN system to reduce the demand-led pressures that councils face. The reforms include providing £1.4bn of funding to support new SEN school places, building more special schools, and working towards ensuring that mainstream schools can help more children with SEN.
But, CCN warns that these measures will only help councils in the long term and will not address the present funding shortfall.
Glazier added: “We are urging the government to write off these deficits, otherwise we face catastrophic financial decisions through no fault of our own or local parents.”
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