Labour's Welfare Overhaul: IFS Delivers Damning Verdict on Special Needs Funding Crisis
IFS: Labour's special needs reform 'not fit for purpose'

The Institute for Fiscal Studies (IFS) has issued a stark warning to the Labour Party, declaring its current proposals for special needs funding reform "not fit for purpose" and likely to exacerbate the very crisis they aim to solve.

A System Already on the Brink

The report highlights an education system already buckling under immense pressure. Local authorities across England are projected to overspend their dedicated high-needs budgets by a staggering £3.5 billion, forcing them to raid other essential school funds to cover the shortfall. This unsustainable practice has created a vicious cycle of cuts and deficits.

The Flaw in Labour's Plan

Central to the IFS's criticism is Labour's focus on transferring accountability from local councils to central government. While intended to streamline support, the think tank argues this approach fails to address the root cause of the problem: a chronic and severe lack of funding.

"Simply shifting the deck chairs on the Titanic is not enough," the analysis suggests. Without a significant cash injection, the proposed reforms risk creating a damaging postcode lottery where the support a child receives depends heavily on their location.

Key Concerns from the Experts

  • Deepening Inequality: The reforms could widen the gap between different regions, leaving vulnerable children in disadvantaged areas with even less support.
  • Insufficient Funding: The core issue remains the multi-billion pound black hole in SEND funding, which the current proposals do not adequately fill.
  • Administrative Chaos: A poorly managed transition from local to central control could disrupt the education of thousands of children with complex needs.

A Call for Fundamental Change

The IFS is urging a complete rethink. Instead of mere structural tinkering, they call for a fundamental overhaul that prioritises clear, national standards for support backed by the necessary financial commitment from the Treasury. The future of an entire generation of children with special educational needs and disabilities hangs in the balance.