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Special needs children forced out of school by ‘crumbling’ system, figures show

A huge gap in funding is leaving special educational needs children and their families without support, the public spending watchdog said

The special education system is “failing children and their families”, experts have said, after researchers warned of a funding gap worth billions.

Schools for children with special educational needs and disabilities (SEND) are running at well over capacity and struggling to stay in education, according to complex disabilities charity Sense.

Two-fifths of England’s local authorities could be forced to effectively declare bankruptcy within two years, when the SEND funding deficit could hit £4.6bn, National Audit Office (NAO) figures showed.

Councils are currently being protected by a government accounting measure known as a statutory override – due to end in March 2026.

But the system is already falling short of what nearly two million children and their families need, the public spending watchdog said, forcing some parents to leave their jobs to educate their children at home.

The report is “further evidence that the specialist education system is failing” the people who rely on it, said Richard Kramer, chief executive of Sense.

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“The toll trying to navigate this crumbling system can have on families shouldn’t be underestimated. Parents are often forced to educate their children at home out of desperation, which is emotionally and financially taxing. 

“We’ve had parents tell us that they are spending savings put aside for their children’s future before they even start school, and others who end up leaving their own careers to fight for their children’s basic rights.”

There are “stark disparities in attendance figures between disabled and non-disabled pupils”, Kramer added. “And, importantly, the system is not improving and families have totally lost confidence in it.”

The SEND system is financially unsustainable and in urgent need of reform, NAO researchers said. 

Demand for support for children with special educational needs has soared well beyond budget capacity in recent years, despite high-needs funding increasing by 58%. Most of the surge in demand is related to autistic spectrum disorders, speech and communication needs and mental health needs.

“It’s clear that the budget at the end of the month must set out an urgent injection of cash for SEND,” Kramer said. “And in the longer term, the upcoming Children’s Wellbeing Bill must have the welfare of disabled children at its core and include a commitment to ring-fenced funding for a national improvement plan for SEND.”

The system is being hindered by different institutions taking a mismatched approach to the issue, according to the report – supporting children with SEND is a strategic priority for the Department for Education (DfE), for example, while the NHS considers it across just two of its 32 priorities for 2024-25.

DfE officials don’t know how many spaces are available for children with special educational needs in mainstream schools.

The report is “yet another indictment of a failing SEND system that is not meeting the care and support needs of children with special needs”, said councillor Arooj Shah, chair of the Local Government Association’s Children and Young People Board.

The government must set out how it will reform and adequately fund the SEND system “so children get the support they desperately need”, Shah added.

“In particular we are hoping this will include writing off all high needs deficits to ensure councils are not faced with having to cut other services to balance budgets through no fault of their own, or their residents. 

“With councils currently able to keep these off their balance sheets, we have serious concerns that many will face a financial cliff-edge, when this flexibility ends in March 2026.”

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