Send Funding Crisis Threatens Bankruptcy for Majority of English Councils
Council leaders across England have issued a stark warning that eight in ten local authorities will face effective bankruptcy due to escalating special educational needs and disability (Send) costs unless the government implements substantial reforms to the system. This urgent call comes as deficits accumulated by councils are projected to reach a staggering £14 billion by 2028, creating what many describe as a financial time bomb for local government.
Mounting Financial Pressures and Council Responses
The Local Government Association (LGA) has revealed that 95% of top-tier councils are currently operating with Send deficits, with four-fifths reporting they must either cut essential council services or take out loans simply to meet daily financing requirements for Send overspends. This unsustainable situation has reached a critical point where some councils are considering extraordinary measures to address their financial shortfalls.
One particularly striking example comes from Bournemouth, Christchurch and Poole (BCP) council, which has requested special permission to raise council tax by 7.5% from April, significantly exceeding the standard 4.99% limit. This unprecedented request aims to cover the £10 million annual costs of financing loans needed to address their Send deficit, which currently stands at £184 million and is anticipated to balloon to £380 million by March 2028.
The Impending Accounting Deadline
A crucial factor in this crisis is the approaching end of an accounting "override" that currently allows councils to keep Send spending deficits off their balance sheets. When this provision expires at the end of March 2028, the LGA survey indicates that 79% of councils will become effectively insolvent overnight if their deficits remain unresolved. Even if accumulated debts were miraculously cleared by that deadline, the LGA warns that ongoing spending would still exceed budgets in 95% of council areas, with the Office for Budgetary Responsibility estimating this funding gap at £6 billion for 2028-29.
Geographical Disparities and Systemic Issues
Analysis reveals significant geographical disparities in how this crisis affects different regions. A Guardian investigation discovered that among the 32 councils with accumulated Send deficits exceeding £50 million, 24 were located in England's wealthiest areas, raising important questions about fairness and resource allocation. This distribution challenges assumptions about which communities are most vulnerable to funding crises.
The root causes of this financial strain are complex and multifaceted. Much of the increased spending relates to the dramatic growth in children and young people receiving education, health and care plans (EHCPs), which theoretically guarantee support for pupils. Numbers have surged from 240,000 in 2014 to approximately 640,000 today, representing a nearly threefold increase that has placed unprecedented pressure on council budgets.
Government Response and Proposed Solutions
The government is expected to publish a long-awaited education white paper in the coming weeks, outlining proposals to overhaul what is widely regarded as a broken Send system. These reforms are considered politically sensitive, with ministers attempting to balance the need to control spending growth against avoiding backbench rebellions and damaging conflicts with parents and charities concerned about potential dilution of children's existing rights.
Amanda Hopgood, chair of the LGA's children, young people and families committee, emphasised: "Councils remain committed to supporting every child and young person to achieve their potential, and ensuring children receive the support they need is paramount. However, under the current system, the dramatic rise in support requirements has left many councils buckling under unsustainable strain."
Despite record levels of investment and high rates of needs assessment and identification, the LGA notes there is no clear evidence that outcomes for children with Send have been improving, suggesting fundamental systemic issues beyond mere funding levels. The government faces difficult decisions about whether to write off historical Send debts without guarantees from councils that they will reduce ongoing costs, potentially by shifting more Send provision into mainstream schools and decreasing reliance on expensive private specialist institutions.
