School leaders have launched a scathing attack on government ministers, accusing them of 'robbing Peter to pay Paul' following a damning analysis that reveals special educational needs funding is being systematically diverted from mainstream school budgets. The explosive findings come from a comprehensive new report by the Institute for Fiscal Studies (IFS), which warns that the education system has reached a critical 'crunch time' over the unsustainable financing of special needs provision.
Funding Crisis Deepens as Send Costs Skyrocket
The IFS analysis paints a stark picture of a funding system in crisis, with spending on special educational needs and disabilities (Send) expected to more than double in real terms between 2015 and 2028. Alarmingly, the majority of this additional funding is being taken directly from everyday school budgets, creating a damaging squeeze on resources for mainstream education. This diversion of funds means schools have significantly less money available for essential classroom expenses, including basic supplies like pencils, books, and glue sticks that form the backbone of daily learning.
Education Leaders Voice Their Concerns
Pepe Di'Iasio, General Secretary of the ASCL heads' union, responded forcefully to the research findings, stating: 'We clearly cannot continue with a situation where spiralling costs are being funded by squeezing mainstream school funding – effectively robbing Peter to pay Paul – and where even then the level of need outstrips the money available for Send support.' He highlighted how the funding pressure has forced many schools to implement damaging cutbacks across their curriculum, reduce pastoral support, limit extracurricular activities, and increase class sizes.
Daniel Kebede, general secretary of the National Education Union, echoed these concerns, adding: 'Increases in Send funding have been paid for by starving mainstream funding. This just isn't good enough. Our most recent survey shows that schools are running on empty with shortages of even basic supplies like glue sticks and pens.'
Government Faces Difficult Choices
The IFS report presents ministers with three stark options to address the growing crisis: slow the rapid growth in Send spending, accept continued pressure on mainstream school budgets, or inject additional funding through higher taxes or cuts elsewhere in public spending. While school funding has seen increases in recent years that have reversed cuts made between 2010/11 and 2019/20 – bringing funding back to 2010 levels in real terms – the picture becomes less positive when Send spending is accounted for.
Despite a 10 per cent real-terms increase in spending per pupil between 2019/20 and 2025/26, once planned Send expenditure is factored in, funding for mainstream schools actually only grew by 5 per cent. This leaves mainstream school funding at a similar level to 2015/16, effectively erasing years of promised investment.
Experts Warn of Systemic Dysfunction
Luke Sibieta, IFS Research Fellow, emphasised the severity of the situation: 'The most important education issue facing the Government is the growing dysfunction in the Send system. The problems here are not new, but they have been growing, and the Government is right to stress the importance of reform for the sake of everyone involved – children, families, schools and councils. But we have now reached crunch time.'
Josh Hillman of the Nuffield Foundation added a further warning: 'Without decisive action, rising Send costs will dwarf available resources and undermine the promise of high-quality education.'
Projected Funding Gap Reaches Billions
The scale of the financial challenge is underscored by Office for Budget Responsibility (OBR) forecasts, which indicate a staggering £6 billion gap between expected funding and the projected costs of Send provision in 2028/29. The OBR previously warned that if this gap were to be funded from the core schools budget, it could result in a 4.9 per cent fall in per pupil spending – a devastating blow to educational quality across the country.
While the Government has insisted that deficits will be absorbed within the overall government budget rather than directly from school allocations, education leaders remain deeply sceptical. The crisis comes at a pivotal moment, ahead of Education Secretary Bridget Phillipson publishing her long-awaited Schools White Paper, which is expected to address the chronic overspend on special educational needs and disabilities.
Local Authorities Sound the Alarm
Sean Gaul, Oxfordshire County Council's cabinet member for children and young people, described the situation as 'unsustainable', calling it 'a national problem, a national crisis, impacting many families and children across the country.' His comments reflect growing concern among local authorities who are struggling to manage Send provision within increasingly constrained budgets.
The funding crisis represents one of the most significant challenges facing the education system, with implications for millions of pupils, teachers, and families across the United Kingdom. As pressure mounts on ministers to find sustainable solutions, the fundamental question remains: how can the government adequately fund special educational needs without compromising the quality of mainstream education for all students?
