Government Commits to Paying 90% of Councils’ SEND Deficits

The government has outlined how it intends to manage councils’ accumulated special educational needs and disabilities (SEND) deficits and has announced it will pay 90% of these deficits.

This a direct recognition of County Councils Network (CCN) advocacy over the past few years the network said.

The network has published agenda-setting research on the impact of growing SEND deficits on local authorities and what the future looked like without government action.
The CCN’s research, published last Autumn, projects that these deficits are set to reach £6.6bn next month.

The government has said that it will provide a grant for councils to pay off their deficits in Autumn 2026, subject to each local authority submitting and securing the Department for Education’s approval of a local SEND reform plan.

Cllr Bill Revans, SEND spokesperson for the County Councils Network, said:
“The County Councils Network (CCN) has long called for government to address the worsening special educational needs and disabilities (SEND) deficits crisis, and today’s commitment is a very welcome and crucial step in solving the issue. A pledge that the government will eliminate 90% of councils’ historic deficits will be a significant relief to our member councils with the deficit set to reach £6.6bn nationally by the end of next month and direct recognition of the CCN’s advocacy.

“The CCN will now engage with its member councils on the impact of these proposals and it is crucial that any long-term solution is also fair to all councils. Alongside this, the government should reform the outdated dedicated schools grant formula to recognise the disproportionate SEND pressures faced by county and rural unitary councils.

“Looking ahead, it is vital that the Schools White Paper sets out comprehensive reform to the SEND system. Councils will do all they can to improve local services and control future expenditure through local SEND reform plans, but previous initiatives such as Delivering Better Value have shown in the absence of comprehensive changes to the system at a national level, councils will be doing so with one arm tied behind their backs.”

For deficits that arise in 2026–27 and 2027–28, the government has said it will ‘take an appropriate and proportionate approach, though it will not be unlimited.’ From 2028–29, SEND spending will be covered within the government’s DEL budget so local authorities will not be expected to fund future SEND costs from general funds.