Increase and protect school funding for special needs, MPs urge

A cross-party group of MPs has issued a stark warning, urging the government to significantly increase and ringfence funding for special educational needs (SEND) provision to address the escalating demand for support. This call comes as ministers are poised to unveil major reforms to the SEND system in England, a sector widely acknowledged to be in crisis. The MPs, predominantly from the Labour party, have presented a comprehensive plan advocating for funding to be "aligned to need" and for schools to receive "inflation-proofed" budgets.

The government faces a formidable challenge, grappling with the soaring costs associated with the SEND system. While the Department for Education (DfE) asserts it is boosting investment in schools to enhance outcomes for children with special educational needs, the reality of budgets appears strained once the increasing costs of SEND support are factored in. The DfE has announced an investment of an additional £1.7 billion in schools by 2026-27. However, a significant financial pressure of an estimated £6 billion is anticipated from 2028, when the government plans to assume responsibility for SEND costs currently borne by local authorities. Recent analysis from the Institute for Fiscal Studies highlights three potential avenues for the government to manage this financial strain: increasing overall education funding, implementing reforms to curb the growth of SEND spending, or resorting to budget cuts.

Concerns are mounting among parents and Labour MPs that proposed reforms might inadvertently lead to a curtailment of essential SEND support, potentially sparking a significant backlash. Neil Duncan-Jordan, a Labour MP who previously defied the government on welfare reforms, emphasized that any changes to SEND provision must be "driven by making the system better, not by saving money." He stressed the critical need for parental buy-in, stating, "We need buy-in from parents for this to work. The last thing any government needs is an army of parents who are against them because they think they’re making their lives worse."

Local authorities are legally obligated to meet the needs of eligible pupils, but the mounting costs associated with growing demand are proving increasingly unsustainable. The number of children in England with special educational needs has risen substantially in recent years, now exceeding 1.7 million. Consequently, public spending dedicated to children with high needs has seen a dramatic increase, escalating from £7.5 billion in 2016 to an estimated £12 billion by 2025, representing a real-terms increase of 66%.

A government policy paper detailing proposed changes to SEND provision is expected in February, following an earlier delay. The DfE initiated a survey last year, and the All-Party Parliamentary Group (APPG) on SEND has submitted its proposals, which have been reviewed by the BBC.

Ministers ‘in listening mode’

In its submission, the APPG argued that "Inflation has eroded the real value of core funding in schools and special places; restoring it and protecting early help budgets will underpin timely support." The MPs further asserted that national SEND policy "should align expectations and funding with the level of need settings are now asked to meet." The APPG’s recommendations also include increased investment in early years provision and the development of a national SEND workforce plan.

Any perception of funding cuts would undoubtedly alarm many stakeholders involved in the APPG, a group actively seeking to influence Education Secretary Bridget Phillipson as her department finalizes the reforms. In recent months, ministers have engaged in consultations with Labour MPs from the APPG to solicit their input and build parliamentary support for the reforms, should they be put to a vote. Ministers have also faced strong calls not to dismantle Education, Health and Care plans (EHCPs), which are legally binding documents that guarantee tailored support for pupils identified as having high needs. One MP involved in these discussions described the ministerial approach as being "in listening mode."

Labour MP Jen Craft, a vice-chair of the APPG and a mother of a disabled daughter with an EHCP, recently met with Ms. Phillipson to discuss pressing SEND issues. Representing Thurrock, Ms. Craft posited that enhancing early intervention strategies and fostering greater inclusivity within mainstream schools could potentially lead to a reduction in the demand for high-needs support, thereby generating cost savings. She articulated a critical perspective, stating, "The system is not necessarily focused on the needs of the children it is supposed to be there to help. There’s an enormous amount of money in the system but it’s not being spent well." Ms. Craft has organized events to gather feedback on SEND provision from pupils, parents, and teachers within her constituency.

In a detailed report, she advocated for the government to "look closely at its plans for SEND funding, particularly the discrepancies between local authorities, the potential to ringfence budgets, and investment in early years to prevent children’s needs escalating." Across the political spectrum in Westminster, there is a consensus that the SEND system in England is in urgent need of reform. While the Conservative and Green parties have yet to articulate explicit policy proposals, the Liberal Democrats have outlined five foundational principles for the upcoming reforms, including the establishment of a "fair funding system" designed to encourage schools to admit pupils with SEND. Reform UK is currently formulating its own SEND policy and is expected to release its proposals early this year. Richard Tice, a Reform UK MP, has argued, "SEND needs reform not more money. It has had billions more in recent years and outcomes have not improved at all."

A spokesperson for the DfE stated that the government is investing £200 million in providing SEND training for all teachers and allocating at least £3 billion towards the creation of 50,000 new specialist places. The spokesperson reiterated that the SEND reforms "will be driven by our mission to improve outcomes for all children." The department is "laying the groundwork for an inclusive education system where children are supported at the earliest stage and can thrive in a school that meets their needs, close to home," the spokesperson added.