The government failed to properly assess the financial consequences for councils of 2014 reforms to the system for supporting young people with special educational needs and disabilities (SEND), according to the National Audit Office (NAO).
In a report released today, the NAO said 81.3% of councils overspent their SEND budgets compared with 47.3% in 2013-14.
It said increases in funding from the Department for Education have not kept pace with the rise in demand, as well as an increasing number of SEND pupils attending independent special schools.
The report said changes under the Children and Families Act 2014 were aimed at identifying needs earlier, better integrating education, health and social care services and involving families more in decisions.
However, the NAO said: “The department expected that the benefits and savings would significantly outweigh the costs of moving to the new system.
“It believed that more collaborative working between agencies and greater engagement with families would lead to cost savings.
“However, it did not quantify these or validate its assumptions before implementing the changes.”
As an example, the NAO said that the government assumed there would be fewer challenges to local authorities’ decisions about support due to more cases being resolved through mediation.
However, the number of cases being taken to tribunal increased by 80.5% between 2014/15 and 2017/18.
The NAO said that between 2013/14 and 2017/18 government funding increased the high-needs funding block by £349m (7.2%) in real terms.
However, against a rise of 10% in the number of pupils qualifying for support, per-pupil funding fell by 2.6% over the period.
In 2013/14, 71 councils overspent their SENDs budgets, but that number has risen to 122 in 2017/18.
The net overspend across all local authorities was £282m that year, compared with a net underspend of £63m in 2013/14.
The main way councils have funded overspending against their high-needs budgets is by using dedicated schools grant reserves accumulated in previous years, the NAO said.
However, the report added: “Schools forums, whom local authorities consult about funding transfers, appear increasingly unwilling to support moving money to the high-needs block, as this reduces funding for mainstream schools.”
Chair of the Local Government Association’s Children and Young People Board, Judith Blake, said: “This report underlines the significant financial pressures councils face to support children with special educational needs and disabilities (SEND).”
She welcomed the extra £700m announced for SEND in last week’s spending statement, along with a pledge to review the system..
She said: “Reform is needed and councils want to work with the government and families and children with SEND on the forthcoming cross-government review to get a clear picture of why demand and cost pressures are continuing to rise and what can be done to make the system work more effectively for everyone.”
Carl Les, County Councils Network spokesman for children’s services and education, and leader of North Yorkshire County Council said: “Looking longer term, the Department for Education’s recently-announced review of SEN shows that the funding challenges we are facing are clearly on the government’s radar.
“We look forward to engaging with the review and advocating for sustainable long-term funding for SEN.”
In April, a court ruled that local authorities can legally allocate funding for special educational needs and disabilities (SEND) using banding levels rather than having to calculate individualised provision costs.
