Budget Pledge for SEND Sparks School Funding Fears
The government's Budget announcement to centralise funding for spiralling special educational needs and disabilities (SEND) costs has triggered alarm among schools, with warnings of a potential 4.9 per cent real-terms cut to mainstream school funding per pupil. This move, intended to prevent dozens of local authorities from financial collapse, shifts responsibility for future SEND spending from councils to central government starting in the 2028-29 financial year.
The Financial Precariousness of Local Authorities
The policy change follows urgent warnings about the financial stability of local councils, which have been struggling under the weight of an 80 per cent surge in pupils requiring Education, Health and Care Plans (EHCPs) since 2019. This dramatic increase has been largely driven by rising diagnoses of autism and ADHD. The Office for Budget Responsibility (OBR) highlighted that 59 local authorities face potential bankruptcy when current accounting measures, known as the 'statutory override', expire in 2028-29, potentially revealing accumulated deficits of up to £14 billion.
While the government has committed to managing future SEND funding implications from central coffers, the OBR raised significant concerns in its analysis report. The watchdog noted that the government 'has not set out' how this would be paid for, with the initiative carrying a starting cost of £6.3 billion per year. The critical uncertainty lies in whether this substantial sum will be drawn from the Department for Education's existing budget.
Potential Impact on Mainstream School Funding
The OBR presented a stark scenario: if the Department for Education, under Secretary Bridget Phillipson, were required to absorb these costs within its £69 billion core schools budget for 2028-29, it would result in a 4.9 per cent real-terms reduction in mainstream school spending per pupil. This would effectively reverse the government's planned 0.5 per cent real increase into a significant cut, roughly equivalent to £400 per student annually.
Education unions have responded with grave concern. Pepe Di'Iasio, general secretary of the ASCL heads' union, described the potential transfer of this financial risk to schools as 'catastrophic'. He emphasised that several local authorities are already at risk of financial collapse due to SEND-related deficits. Shadow education secretary Laura Trott warned the move could 'push already struggling schools further into the red'.
In response to these concerns, a DfE spokesman stated the OBR's claim was 'incorrect', clarifying that 'any deficit will be absorbed within the overall government budget' rather than specifically from the schools budget. The spokesman also noted that the projections do not account for upcoming SEND reforms the government plans to introduce.
The Local Government Association welcomed the government's commitment to absorb future SEND costs but stressed it does not resolve the existing deficits currently pushing many councils toward financial ruin. They have urged the government to address these historic shortfalls in the upcoming Local Government Finance Settlement.
Other education-related announcements in the Budget included an additional £5 million in 2026-27 for new books in secondary schools and £18 million over two years to upgrade 200 playgrounds across England.
