Four in five English local authorities face effective bankruptcy due to rising special educational needs and disability (Send) spending unless the government implements significant reforms, council leaders have warned. The Local Government Association (LGA) said 95% of top-tier councils are operating Send deficits, with many forced to cut services or take out loans to cover overspends.
Accumulated Send deficits are projected to reach £14bn by 2028, when an accounting override allowing councils to keep deficits off balance sheets expires. The LGA survey indicates that without debt clearance, 79% of councils would become insolvent overnight. Even if debts are written off, ongoing spending would exceed budgets in 95% of council areas, with the Office for Budget Responsibility estimating a £6bn funding gap in 2028-29.
One council, Bournemouth, Christchurch and Poole, has requested permission to raise council tax by 7.5%—above the 4.99% cap—to cover loan costs for its £184m Send deficit, which is expected to reach £380m by March 2028. The council has been technically insolvent since April 2025 and plans to borrow £95m over the next year.
Guardian analysis reveals huge deficits in other areas: Hampshire County Council projects a £706m deficit by March 2028, West Sussex £414m, and Suffolk £250m. The LGA noted that despite record investment, there is no clear evidence of improved outcomes for children with Send.
The government is expected to publish an education white paper soon, outlining Send system overhauls. However, reforms are politically sensitive, with ministers seeking to curb spending while avoiding clashes with parents and charities over children's rights. Any debt write-off may require councils to shift more Send provision to mainstream schools, reducing reliance on expensive private specialist schools.
Amanda Hopgood, chair of the LGA's children and young people committee, said: “Councils are committed to supporting every child... but under the current system, the rise in support need has left many councils buckling under the strain.”
