The financial crisis jeopardizing special needs education in England.

Laleham Gap school in Kent does not have the typical noisy and bustling atmosphere of most schools in the UK. Headteacher Les Milton explains that this is because the students at his school, who have autism and communication needs, are highly sensitive to noise, touch, and light.

“The building is designed with sound-absorbing materials, wide corridors, no bells, and specific lighting. Most schools are not as autism-friendly as ours,” said Milton, who has witnessed a significant increase in demand for places at Laleham Gap since it opened in 2016.

“The school was originally built to accommodate 168 pupils. Today, we have 237 pupils, so we have had to expand significantly to meet the demand.”

The growing demand for places at state-funded schools like Laleham Gap is a trend seen across England due to a sharp increase in the number of children diagnosed with autism, communication, and mental health issues.

Official data shows that the number of education, health, and care plans, which provide specialized support for children with the most severe needs, has risen by 83 percent since 2015.

This surge in demand has surpassed available funding, despite a more than 50 percent increase in the government’s high-needs budget over the past decade, growing from £6.8bn in 2015 to over £10bn in 2024.

This financial strain on councils has led to a growing crisis in managing special educational needs and disabilities (Send) provision.

New data from the County Councils Network reveals that 26 of England’s 38 county and rural councils are at risk of bankruptcy before 2027 if Send deficits are not addressed by the central government.

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A temporary change to accounting rules was implemented in 2018 to keep these costs off council balance sheets, but this is set to expire in March 2026. Kate Foale, CCN special educational needs spokesperson, emphasized the need for the government to provide “immediate clarity” on plans to eliminate or manage deficits.

“We also need a comprehensive reform of the system to address the key issues driving demand and cost, including making mainstream schools more inclusive for Send pupils,” she added.

Almost all council chief executives surveyed by CCN agreed that “comprehensive and fundamental reform” was necessary, with Send deficits at county and rural councils projected to increase from £2.7bn to £3.8bn by March 2027 without significant changes to the system.

The Department for Education stated that it is focused on “fixing the foundations” of local government by providing long-term stability through multi-year funding settlements and eliminating the need for councils to compete for government funding.

However, with the number of children with EHC plans in England surpassing 434,000 over the past eight years, mounting Send deficits have left many councils facing difficult decisions to meet their obligations.

Sam Freedman, a former government education policy adviser, attributed the rapid increase in EHC plans to a decade of cuts to other Send support in mainstream schools, leading to a “vicious cycle” in educational funding as parents seek EHC plans for support.

The surge in demand has overwhelmed the capacity of state-funded special schools, forcing councils to pay for more expensive privately run alternatives. In Kent, these private special schools cost almost £50,000 on average, compared to £23,000 for state-funded provision.

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Nationally, Department for Education data shows that councils in England are expected to pay £2.1bn for placements at independent schools this year, a threefold increase since 2015.

The increasing burden on councils has made it increasingly challenging for parents to obtain plans for their children, leading to a rise in parents disputing council decisions at tribunals. A record 14,000 parental appeals against Send judgments were registered in 2022-23, with parents winning 98 percent of cases taken to tribunal.

The Department for Education acknowledged that children with Send have been “let down” by the system and expressed determination to address the issues through better inclusivity and expertise within mainstream schools.

“There is no ‘magic wand’ to fix these deep-rooted issues, but we have already taken steps with Ofsted reform, our curriculum review, and more training for early years staff,” the department added.

Freedman emphasized that any solution must involve providing parents with alternative options to seeking an EHC plan for their child, although he acknowledged the challenge of doing so during a period of fiscal constraint.

Reform is underway in Kent following a “safety valve” program agreed upon last year, securing a £140mn bailout from the Department for Education on the condition of reducing its Send deficit.

The council has outlined plans to reintegrate many Send children into mainstream education, but these proposals have faced criticism from special needs headteachers and risk backlash from parents of non-Send children unless adequately resourced.

Roger Gough, leader of Kent County Council, stated that the council is already slowing the growth in spending by supporting more children in mainstream schools, providing staff training, and sharing best practices from other schools.

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“We need to think differently, and in many ways, what is required to make the ‘safety valve’ work is what is needed to make the entire system function effectively,” he added.

Kent County Council is also exploring ways to broaden admission criteria for specific special schools, mixing different types of special needs students to meet more students’ needs locally.

However, Milton from Laleham Gap cautioned that while he recognizes the need for reform, the current plans risk negative outcomes for children, citing the challenges of mixing children with mental health and behavioral issues with those who have sensory sensitivities.

“Funding for Send in mainstream schools has been continually reduced, making it difficult to meet the needs of these children. If inclusivity is the goal, significant investment in the environment and support services is necessary,” he concluded.

The plans have received criticism from the heads of 22 other Kent Send schools, including Stone Bay in Broadstairs, which currently supports students with autism and severe learning difficulties.

Headteacher Jane Hatwell expressed concerns that these changes would lead many parents to once again resort to tribunals to fight for the appropriate provision for their child.

“Our school is located in a Victorian building on a steep road leading to the sea. I am astonished that the local authority is considering altering our designation to accommodate students with a range of medical equipment, poor mobility, or sensory impairments,” she remarked.

“Like many special schools, we are operating at full capacity, and this is already having a negative impact on our current students.”