Labour's Send Overhaul: Costs, Challenges, and the Future of Special Needs Education in England
There are currently 1.7 million children and young adults within the special educational needs and disabilities (Send) system in England, with many more expected to seek education, health, and care plans (EHCPs) over the next decade. This surge in demand underscores the pressing need for a reformed approach to support, as the existing framework has been criticized for traumatizing families with its rigid, one-size-fits-all methodology.
The Financial Burden of Send Services
Delivering a tailored service, as Labour proposes, inevitably incurs additional costs. The Department for Education has pledged to abandon the current system in favor of one that provides "experts at hand" to assess individual pupil needs. However, parents and educators are left questioning where the resources for such a bold transformation will originate, especially given that Whitehall budgets were solidified last year under a three-year agreement.
In the last financial year, Send services cost approximately £11 billion, according to the Institute for Fiscal Studies. This represents a nearly 60% increase, or £4 billion, from 2015–16 to 2024–25 after adjusting for inflation. Since the Tories established the current system in 2014, the dedicated schools grant has struggled to keep pace with escalating expenses. By 2020, the situation had spiraled out of control, prompting then-Prime Minister Boris Johnson to permit local authorities to offload costs into a separate facility known as the override, which allowed borrowing off the books to manage overspends.
New Funding and Ongoing Challenges
Labour recently extended the override to provide breathing room ahead of a new financial deal. This month, the government announced it would clear £5 billion of historical Send debt, offering relief to local authorities who had warned that 90% faced bankruptcy without intervention. Despite this, overspending is projected to reach £14 billion by 2027, with the annual shortfall expected to hit £6 billion by 2029, according to the Office for Budget Responsibility. Chancellor Rachel Reeves has committed to phasing out the override by 2029, integrating all Send spending into Whitehall budgets.
Additional funding includes £200 million for teacher training in mainstream primary and secondary education, equating to about £450 per teacher. This is complemented by a £1.8 billion "experts at hand" fund to support educational psychologists and a £1.6 billion inclusion grant for schools to address common Send needs, such as speech and language support. Collectively, these measures are estimated to add £1 billion in extra funding by 2026–27, rising to £1.5 billion annually by 2028–29. Furthermore, a £750 million per year capital budget will create inclusion bases in schools, aiming to provide over 60,000 more specialist places.
Hurdles and Skepticism
The source of this funding remains a critical question, with MPs on the Treasury committee seeking clarity from Chancellor Reeves. Concerns persist about the adequacy of debt write-offs and the transparency of financial interactions, especially given the OBR's estimate of an £18 billion historical spending backlog by 2028–29. Education Secretary Bridget Phillipson has pledged to honor existing Send plans, but how new spending will mesh with current allocations is unclear.
Ministers argue that shifting services from expensive private providers to mainstream school units can improve outcomes and reduce costs. However, skepticism abounds, mirroring reactions to recent welfare proposals. Key challenges include teacher shortages, as schools already grapple with retention and recruitment issues, and a scarcity of educational psychologists due to low pay relative to required qualifications. The success of the inclusion grant hinges on collaboration with head teachers and unions, while potential savings from reduced reliance on private providers remain uncertain.
In summary, Labour's Send overhaul represents a significant shift toward personalized support, but it faces substantial financial and logistical hurdles. The coming years will test whether the proposed reforms can deliver on their promises while managing the growing demands of England's special needs education system.
