(England) 79% of local councils have SPED deficits; "rising numbers of pupils" with special needs

Feb 5, 2026, GBN: Councils threatened with insolvency as special needs spending blows £14billion [$19B] hole in local budgets

https://www.gbnews.com/money/councils-in-crisis-special-needs-spending 

Nearly 70 local authorities across England have warned they will become insolvent unless Labour provides a multibillion-pound rescue package to tackle rapidly rising special educational needs and disabilities (SEND) deficits.

A survey conducted by the Local Government Association (LGA) found 79 per cent of councils with education responsibilities cannot produce balanced budgets once current emergency accounting measures expire in 2028.

Accumulated deficits built up over years of overspending on SEND provision are projected to reach £14billion [$19B], according to analysis by the Office for Budget Responsibility (OBR).

Of the 87 councils that participated in the survey, just seven expressed confidence in their ability to balance their finances when the statutory override mechanism ends.

The remaining councils reported uncertainty about their financial stability once existing protections are removed.

The financial pressure stretches across the majority of upper-tier councils responsible for education spending in England, highlighting the widespread scale of the issue facing local authorities.

Among the 153 authorities with education responsibilities, 95 per cent of those responding to the LGA survey confirmed they had exceeded their special needs budget during the current financial year.

Looking ahead, 77 councils said they expect to continue running deficits into the 2028/29 financial year without major structural reforms, based on 82 responses to that specific question.

Rising numbers of pupils are now receiving education, health and care plans that entitle them to additional specialist support funded by local authorities.

This support can include one-to-one classroom assistance or placements at specialist schools designed to meet complex educational needs.

Growing demand has pushed annual spending on special needs education above £12billion [$16B] in 2023/24, with a further 13 per cent real-terms increase forecast for the current financial year.

Ministers are expected to unveil reforms later this month that could limit children’s legal rights to specialist assistance in certain circumstances.