Education

Financial crisis looms as SEND costs threaten council insolvencies in England

Saturday, 15 November 2025 5:06AM UTC

Dozens of councils across England face potential insolvency due to soaring costs linked to special educational needs and disabilities, with deficits projected to reach £18 billion and reforms delayed until 2026, heightening concerns over support for children with SEND.

Dozens of councils across England face the risk of "total collapse" as escalating costs linked to special educational needs and disabilities (SEND) provision push local authority finances to breaking point, a recent report warns. The County Councils Network (CCN) highlights that around 59 councils could become insolvent overnight when accumulated deficits, estimated to total roughly £18 billion, are formally recognised on their balance sheets. This looming financial crisis stems chiefly from an 80 percent surge in Education, Health and Care Plans (EHCPs) issued since 2019, supporting children with conditions such as autism and ADHD.

Despite this dramatic expansion, the report underscores that expected improvements in outcomes for children with SEND have not materialised. The CCN's findings echo concerns voiced by council leaders and experts that the current SEND framework is unsustainable, with many local authorities warning of unprecedented financial strain if reforms are delayed further. Councillor Matthew Hicks, chairman of the CCN, stressed that without decisive government action, families could face longer waits for support while local authorities confront deficits nearing £18 billion.

The SEND system has been under extraordinary pressure for over a decade, with policy and funding challenges intensifying. Currently, councils have used an accounting mechanism called the statutory override to keep these high needs deficits off their formal balance sheets. Initially set to expire in 2026, this measure was recently extended through to March 2028, offering a brief reprieve to authorities already struggling with budgetary constraints. However, half of councils surveyed by the Local Government Association (LGA) expect insolvency once this safeguard ends if alternative solutions are not implemented. Similarly, independent investigations reveal that nearly 20 councils have publicly warned of insolvency due to mounting SEND debts, with deficits forecast to increase by nearly £2 billion over the next year alone.

Financial pressures are exacerbated by rising demand and the increasing cost of private special school placements, which councils have turned to amid insufficient support within mainstream schools. The CCN projects annual spending on such private placements will reach £3.2 billion by 2029. Intriguingly, this spending surge has led to funds being diverted from mainstream education budgets, with £150 million reallocated last year, potentially impacting the wider school system. To address these systemic issues, the CCN calls for legislative amendments to refocus EHCPs on children most in need and increased investment in educational psychologists and early preventative support resources in mainstream settings.

Government plans to reform SEND were anticipated as part of the Schools White Paper, but this initiative has been delayed until 2026 to allow further testing of proposals, a move that has drawn criticism from councils and campaigners alike. The delay prolongs the financial uncertainty and operational strain faced by local authorities. Speaking to The Guardian, council officials warned that without urgent reform, some local authorities might resort to asset sales or face insolvency. Additionally, data reveals stark inefficiencies in the system, such as over £100 million spent on failed legal challenges by councils and government to block SEND support, highlighting broader systemic and administrative problems.

The Department for Education acknowledges the challenges, stating the government inherited a "SEND system on its knees" and is committed to improving inclusion and support. They report having conducted extensive consultations with families and committed £740 million towards specialist educational places and earlier interventions. However, critics argue these measures have yet to alleviate the mounting financial and service delivery crises faced by councils.

As SEND numbers continue to rise, projected to reach 840,000 EHCPs by 2028-29, or one in 20 children and young people, the scale of looming deficits and demand pressures demands urgent, comprehensive reform. Without this, councils warn of a coming financial avalanche that could severely hinder the ability of young people with SEND to access timely and effective support.

📌 Reference Map:

^[1] (Daily Mail) - Paragraphs 1, 2, 3, 5, 7, 8, 9
^[2] (Local Government Association) - Paragraph 4
^[3] (The Guardian, June 2025) - Paragraph 4, 6
^[4] (The Guardian, March 2025) - Paragraph 4
^[5] (The Guardian, June 2025) - Paragraph 4
^[6] (The Guardian, November 2025) - Paragraph 1, 2
^[7] (The Guardian, December 2024) - Paragraph 6

Source: Noah Wire Services

More on this

https://www.dailymail.co.uk/news/article-15291569/Councils-collapse-SEND-costs-debt-autism-ADHD-diagnosis-EHCPs.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 - Please view link - unable to able to access data
https://www.local.gov.uk/about/news/half-councils-warn-insolvency-over-special-needs-spending - A survey by the Local Government Association (LGA) reveals that over half of councils supporting children with special educational needs and disabilities (SEND) anticipate insolvency when a temporary accounting measure, known as the 'statutory override', ends in March 2026. This measure currently allows councils to keep SEND spending deficits off their main balance sheets. Without an alternative solution, many councils fear they will be unable to balance their budgets, leading to potential financial crises.
https://www.theguardian.com/education/2025/jun/20/councils-millions-extra-send-costs-overhaul-delayed - Council leaders and experts express concern over a two-year delay in the government's overhaul of special educational needs and disabilities (SEND) provision. The delay prolongs financial struggles for local authorities, with some warning it could lead to asset sell-offs and insolvency. Councils have been allowed to keep high-needs deficits off their balance sheets due to a statutory override, which was due to end next April but has now been extended until April 2028.
https://www.theguardian.com/education/2025/mar/30/councils-england-insolvency-risk-send-costs - Nearly 20 councils in England have publicly warned of insolvency due to multibillion-pound debts from overspending on special educational needs support. A Guardian investigation shows that SEND deficits are forecasted to grow by nearly £2bn over the next 12 months, with some councils anticipating debts increasing by millions monthly. The 'statutory override' accounting measure, which allows councils to keep these deficits off their balance sheets, is set to end on 31 March 2026, potentially rendering many councils effectively insolvent.
https://www.theguardian.com/education/2025/jun/13/councils-in-england-warn-of-mass-bankruptcies-as-send-deficits-soar - Councils in England warn of mass bankruptcies as special educational needs and disabilities (SEND) deficits soar. They express concern over the government's lack of indication on how to address these debts, expected to exceed £5bn by next March. Official figures show a sharp rise in the number of children receiving special needs support, with nearly one in five pupils in England now having special educational needs, including 482,600 children with Education, Health and Care Plans (EHCPs).
https://www.theguardian.com/education/2025/nov/14/special-educational-needs-services-schools-england-collapse - Councils warn of a potential 'total collapse' in special educational needs and disability (SEND) services due to increasing demand. A report by the County Councils Network estimates that without urgent structural reform, about 59 upper-tier authorities could face effective bankruptcy by March 2028. The report highlights a significant rise in the number of Education, Health and Care Plans (EHCPs), with projections reaching 840,000 by 2028-29, equivalent to one in 20 children and young people.
https://www.theguardian.com/uk-news/2024/dec/22/100m-spent-in-england-on-failed-efforts-to-block-childrens-send-support - Analysis by The Guardian reveals that over £100m was spent in 2022-23 by local authorities and the government on unsuccessful attempts to block support for children and young people with special educational needs in England. This substantial expenditure on legal fees and staff resources resulted in councils winning just 136 out of more than 10,000 tribunals, indicating systemic issues within the SEND system and the need for urgent reform.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 7

Notes: The narrative has appeared in multiple reputable outlets, including The Guardian and the Local Government Association, with the earliest known publication date being 30 March 2025. ([theguardian.com](https://www.theguardian.com/education/2025/mar/30/councils-england-insolvency-risk-send-costs?utm_source=openai)) The report from the County Councils Network (CCN) is recent, dated 14 November 2025, indicating a high freshness score. However, the Daily Mail article appears to be a republished version of earlier content, which may affect its freshness. The narrative is based on a press release from the CCN, which typically warrants a high freshness score. No significant discrepancies in figures, dates, or quotes were found. The content has been republished across various outlets, including low-quality sites and clickbait networks, which may affect its credibility.

Quotes check

Score: 8

Notes: Direct quotes from Councillor Matthew Hicks, chairman of the CCN, and other officials are present. The earliest known usage of these quotes is from the CCN's report dated 14 November 2025. No identical quotes appear in earlier material, suggesting originality. However, variations in wording were noted in different publications, which may indicate paraphrasing or selective quoting.

Source reliability

Score: 6

Notes: The narrative originates from the County Councils Network (CCN), a reputable organisation. However, the Daily Mail, which has a history of sensationalism, is the primary outlet for this report, raising concerns about the reliability of the source. The CCN's press release is a direct source, but its dissemination through various channels, including less reputable ones, may affect the overall reliability.

Plausability check

Score: 9

Notes: The claims about councils facing financial difficulties due to SEND costs are consistent with previous reports from The Guardian and the Local Government Association, indicating a high level of plausibility. The narrative includes specific figures and quotes, providing factual anchors. The language and tone are consistent with the region and topic. No excessive or off-topic details were noted. The tone is formal and appropriate for the subject matter.

Overall assessment

Verdict (FAIL, OPEN, PASS): FAIL

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: While the narrative is based on a recent and original report from the County Councils Network, its dissemination primarily through the Daily Mail, a source with a history of sensationalism, raises concerns about its reliability. The presence of the narrative across various outlets, including low-quality sites and clickbait networks, further diminishes its credibility. Despite the plausibility of the claims, the source's reliability and the manner of dissemination lead to an overall assessment of 'FAIL' with medium confidence.

SEND funding crisis
local authority insolvency
special educational needs