Learning Disability Today
Supporting professionals working in learning disability and autism services

SEND system in urgent need of reform, says NAO

The soaring demand for support for children with special educational needs and disabilities (SEND) has put the system in a ‘financially unsustainable’ position, according to a new report by the National Audit Office (NAO).

The report reveals there are now 576,000 children with an Education, Health and Care Plan (EHCP) – a 140% increase since 2015 – with most of this increase related to autism; speech, language and communication needs; and social, emotional and mental health needs. This surge in demand for EHCPs has created long waiting lists, with only half of plans issued within the statutory 20-week target in 2023.

Report director, Emma Willson, says the new research shows that the special educational needs is in “urgent need of reform”, and despite a decade of increased funding “it is still not delivering for children or their families.”

Two fifths of local authorities at risk of bankruptcy

The NAO estimates that 1.9 million children and young people aged 25 and younger have special educational needs, with 1.14 million requiring SEND support in schools.

In light of the growing number of children requiring support, the Department of Education has increased funding by 58% over the past decade to £10.7 billion in 2024-25. However, the NAO says the system is still not delivering better outcomes for children and young people or preventing local authorities from facing significant financial risks.

The report found the system to be ‘financially unsustainable’ with deficits related to SEND costs estimated to reach £4.6 billion by March 2026. By this time, accounting arrangements (termed ‘statutory override’) will end, leaving 43% of local authorities at risk of issuing Section 114 notices, effectively declaring bankruptcy.

Although the Department for Education has introduced initiatives such as the Safety Valve and Delivering Better Value programmes to address the immediate financial pressures, the NAO says these initiatives are not generating savings quickly enough, and by 2027-28, a funding shortfall of up to £3.9 billion could emerge.

The National Audit Office is now warning that schools could be incentivised to exclude pupils with SEND, which conflicts with local authorities’ duties to find children school places and ensure value for money.

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Indeed, while the Department of Education has committed to improving the system, none of the 60 stakeholders the NAO engaged with believed current plans would sufficiently address the problems they saw.

Decision-makers must work with families to ‘shape a future system that works for all’

To put the system on stable financial footing and ensure children with SEND receive the help and support they need, the NAO report has made nine recommendations for the government.

This includes a whole system reform which improves outcomes and ensures financial stability, and developing a long term plan which clearly depicts how children with SEND will be prioritised going forward, both in the education and healthcare system.

Gareth Davies, head of the NAO, says the report shows how the Department of Education’s current actions are “unlikely to resolve the challenges” faced by children and families with SEND.

“The government has not yet identified a solution to manage local authority deficits arising from SEN costs, which ongoing savings programmes will not address,” he said. “Given that the current system costs over £10 billion a year, and that demand for SEN provision is forecast to increase further, government needs to think urgently about how its current investment can be better spent, including through more inclusive education, and developing a cohesive whole system approach.”

Jolanta Lasota, Chief Executive of Ambitious about Autism, said: “This government must do more to fix the unsustainable problems within the education system, but any reform must protect and prioritise young people and families’ existing rights to support. We urge decision-makers to work with autistic children and young people and their families to shape a future system that works for all.”

author avatar
Lauren Nicolle
Lauren is a qualified journalist who writes primarily across the health and social care sectors. She is passionate about exposing the injustices faced by people with a learning disability, with a particular focus on equal access to healthcare.

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