(England) Schools using mainstream funding for 'mountainous' costs of SPED

Feb 10, 2026, tes Magazine: Third of areas cut core school funding to prop up SEND 

https://www.tes.com/magazine/news/general/councils-cut-schools-funding-to-pay-for-send-provision 

DfE urged to fix the ‘scandal’ of mainstream school funding being diverted to support councils’ ‘mountainous’ SEND debts

Schools in more than one in three areas of the country face cuts to their core funding next year as local authorities grapple with “mountainous” deficits in special educational needs spending.

Tes can reveal there are more than 60 areas of the country where councils are set to transfer money away from their core schools funding block into the high-needs block to meet special educational needs and disabilities cost pressures.

High-needs funding is used by local authorities to fund specialist places and to provide top-up funding for pupils whose needs cannot be readily met in mainstream schools.

The government last night announced plans for 90 per cent of council deficits in high needs spending accrued to the end of 2025-26 to be covered by central government.

A Tes investigation has revealed how councils across the country are already planning to move money out of their core schools funding pot in 2026-27 as they grapple with ongoing deficits.

Leaders warn that moving money away from mainstream schools puts their budgets under strain and makes it harder for them to meet the needs of pupils with SEND - at a time when the government is focused on inclusion.

Taking core schools funding for SEND

Councils are allowed to transfer up to 0.5 per cent of their core schools funding block into their high-needs block with the support of their local schools forum - a group that makes decisions on local funding allocations.

Transfers above 0.5 per cent require the education secretary’s approval.

Responses to questions from Tes and an analysis of schools forum minutes show that there are at least 73 areas of the country where councils have consulted on plans to transfer funding to the high-needs block for 2026-27.

These transfers are going ahead in at least 61 areas and there are three more where Tes is still chasing an update on the decision.

There are at least nine councils where local schools forums rejected plans for a transfer, but in at least three of these - Manchester, Hillingdon and Somerset - the authority is now seeking approval from the education secretary to make the transfer without forum support.