The special education bill in England has reached £10 billion a year, and the number of children and young people eligible for government support in the form of education, health and care schemes will double to one million within a decade, according to a historical report. has found.
The National Audit Office (NAO) investigation found that despite record levels of spending, there were no signs of improvement in the lives of children with special educational needs (SEN).
The report said local authorities were being forced into insolvency by growing demand for special school places and “much-needed” funding for specialists such as therapists, psychologists and teaching assistants.
“Although the Department for Education has increased funding for the most important needs, the SEN system is still not delivering for children and their families, and the DfE's current actions are unlikely to resolve the challenges,” said Gareth Davies, director of the NAO.
“The government has not yet identified a solution to manage local authority deficits arising from SEN costs, which ongoing savings programs will not address. With the current system costing more than £10 billion a year, and demand for SEN provision expected to rise further, the government needs to urgently think about how its current investment can be best spent, including through a more inclusive education and the development of a cohesive whole. -systemic approach”.
Bridget Phillipson, the education secretary, said the previous government had “neglected the system to the point of causing a crisis”.
“I am determined to rebuild families' trust in a system that so many people depend on, so that there are no more band-aid policies or short-termism when it comes to the life chances of some of our most vulnerable children,” she said.
“The reform that families are crying out for will take time, but with a greater focus on mainstream provision and earlier intervention, we will achieve the much-needed change.”
The NAO report revealed that the number of children and young people requiring statutory support – set out in documents known as education, health and care plans (EHCP) – could rise from 576,000 this year to more than 1 million in 2032-33, according to the internal forecasts of the Department of Education.
Autism spectrum conditions are expected to see the fastest growth, after the number of children diagnosed in England's public schools soared from 57,000 in 2015-16 to 132,000 last year.
The report said there was no comprehensive explanation for the sharp rise in autism diagnoses, but said factors included increased awareness of the condition and needs, “potentially accelerated” by the impact of Covid, as well as incentives for Schools seek EHCP for pupils in order to access high needs funding.
Education leaders and experts said the NAO report showed the system was in crisis, with responsibilities and costs piling up on councils, schools and families.
Tom Rees, chief executive of Ormiston academy trust, said: “The NAO report is further evidence of the urgent and overdue need to reform the SEN system. “The magnitude of the challenge is significant: this is the most important and most complex educational reform of the next decade.”
Richard Kramer, chief executive of Sense, a charity that supports people with complex needs, said the report explained why families had “totally lost confidence” in the system.
“The toll that trying to navigate this crumbling system can take on families should not be underestimated,” Kramer said.
“We have had parents tell us they are spending savings set 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.”
The NAO analysis came days after the SEN warned that SEN spending shortfalls were pushing local authorities into bankruptcy.
The most affected councils can currently keep deficits out of their accounts through a legal override known as a “safety valve”. But the repeal is set to expire in March 2026, requiring government intervention before then to prevent savage cuts being imposed on councils.
Arooj Shah, chair of the LGA children and young people board, said: “We hope that in next week's budget the government will set out how it will reform and adequately fund the Ship programme. [special educational needs and disabilities] system, so that children get the support they desperately need.
“Explicitly, we hope this includes canceling all high-need deficits to ensure councils do not have to cut other services to balance budgets through no fault of their own or their residents. “Given that councils can currently keep them off their balance sheets, we are seriously concerned that many will face a financial cliff edge when this flexibility ends in March 2026.”
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