The Government has committed to resolving 90 per cent of councils’ historic deficits in respect of provision for children with special educational needs and disabilities (SEND) – projected to be worth more than £5 billion.
All local authorities with a SEND deficit will be eligible to receive grant funding subject to submitting and securing the Department for Education’s approval of a local SEND reform plan.
Resolving dedicated schools grant high needs deficits accrued to the end of 2025/26 could cut the cost of financing those existing deficits by an estimated £300 million by 2027/28, according to the Government.
Ahead of the announcement, the LGA had warned the deficits threatened the viability of social care councils, with four out of five councils responding to an LGA survey saying they would not have been able to set a balanced general fund budget in 2028/29.
Cllr Louise Gittins, LGA Chair, said: “We are pleased the Government has announced a significant funding package to tackle 90 per cent of the historic high-needs deficits which removes the immediate threat of insolvency for many councils.
“This is recognition that these costs are not of councils’ making and have accrued due to a broken system that is urgently in need of reform. However, fully writing off historic and future high needs deficits remains critical.
“Councils continue to work hard to use their finite resources in the best way possible to ensure the best outcomes for children and to meet their legal duties to support children and young people with SEND.
“It is important the [forthcoming] Schools White Paper delivers the much-needed reform of the SEND system, leading to better outcomes for children and families, both now and in the future, and that is financially sustainable for councils.”
Cllr Gittins added: “Overall budget-setting will be another hugely challenging task for many councils this year and beyond. It is crucial that government works with councils on reform of key services, including SEND and adult social care.
“Long-term reform of the overall local government finance system is also needed to ensure all councils have adequate funding to meet demand pressures, deliver the services communities expect and help deliver on national priorities.”