Councils on Brink of Collapse as SEND Costs Spiral Out of Control
A devastating new report has revealed that dozens of local authorities across England face immediate bankruptcy when massive SEND education deficits are formally added to their books. The County Councils Network (CCN) warns that at least 59 councils could collapse overnight when deficits approaching £18 billion become official.
The crisis stems from an 80% surge in Education, Health and Care Plans (EHCPs) issued since 2019. These legally binding documents entitle children with conditions like autism and ADHD to specific support, but the dramatic expansion hasn't led to significant improvements in outcomes for vulnerable children.
Financial Time Bomb Set for 2028
Council SEND debts are projected to reach a staggering cumulative deficit of £17.8 billion by 2029, according to research conducted with Isos Partnership. This equates to nearly £1,000 of debt for every child and young person in England - more than what councils spent on children's social care last year.
Local authorities have been using an accounting arrangement called a statutory override to keep these massive high needs deficits off their balance sheets. The mechanism was due to end in 2026 but was extended until March 2028. When this protection ends, more than half of the councils surveyed by CCN confirmed they would face immediate bankruptcy.
Councillor Matthew Hicks, chairman of the CCN, didn't mince words: "The research shows 'the system is heading towards total collapse in little over four years.' This could mean families facing even longer waits for support, councils facing a level of demand that the system was never designed for, and local authorities staring down unimaginable deficits."
Spiralling Costs and Failed Outcomes
The number of EHCPs has skyrocketed to 638,745 as of January this year, placing unprecedented pressure on local authority resources. Councils are increasingly forced to rely on expensive private special school provision due to inadequate support in mainstream schools.
By 2029, councils are projected to spend £3.2 billion annually on private school placements for young people with EHCPs. The financial strain has become so severe that local authorities are increasingly raiding mainstream school budgets to cover SEND shortfalls.
Last year alone, £150 million was rerouted, largely from mainstream schools, to high needs budgets. This robbing Peter to pay Paul approach highlights the systemic failure of current funding arrangements.
Urgent Reforms Demanded
The report delivers a stark warning to government, insisting ministers "cannot keep ducking reform" after Education Secretary Bridget Phillipson delayed the Schools White Paper until the new year. The CCN is demanding the government wipe out SEND deficits while pushing through comprehensive reforms.
Recommended solutions include investment in educational psychologists and preventative support to build capacity in mainstream schools. The report also calls for legislative change to focus EHCPs on those most in need, ensuring resources reach the children who need them most.
Mr Hicks emphasised the urgency: "Now is the time to be bold and act decisively: Government cannot keep ducking reform and ministers must use the delay to set out comprehensive and long-lasting change to the system."
The issue remains politically sensitive, with many Labour MPs insisting the EHCPs system and funding must be maintained despite the escalating costs. A Department for Education spokesperson responded: "This Government inherited a Send system on its knees, with thousands of families struggling to get the right support. We're determined to put that right by improving mainstream inclusion so every child can thrive at their local school."
With the statutory override ending in 2028 and deficits continuing to mount, the clock is ticking for both local authorities and the government to find a sustainable solution before the entire system faces collapse.
