IFS demands urgent reforms to fix broken SEN funding system

In England, significant concerns have arisen regarding the funding system for special educational needs (SEN). The Institute for Fiscal Studies (IFS), a leading economics thinktank, has highlighted that council deficits may soar to over £8 billion within three years unless radical reforms are implemented. The report emphasizes the considerable rise in spending on pupils with SEN, which has increased nearly 60% over the last decade. Despite a £1 billion investment introduced in the October budget, local authorities continue to face mounting pressures due to the growing number of children and young people who require education, health, and care plans (EHCPs). These EHCPs cater to the highest needs, and councils are legally obligated to provide the necessary support, leading to a predicted total deficit of £3.3 billion this year. The escalation of deficits and inadequate funding highlights essential deficiencies in the current SEN system. The government’s anticipation of an additional £2 billion to £3 billion increase in annual spending by 2027 reflects the rising demands on the system, exacerbated by the increasing number of children classified under EHCPs. As a consequence, the IFS asserts that without urgent reform, local authorities could face financially unsustainable situations regarding their hapless funding frameworks, causing delays in the delivery of adequate support for children with the most complex needs. Furthermore, a recent National Audit Office report corroborated these concerns, stating that record levels of spending have not yielded improvements in the lives of children with SEN. In response to the alarming trends, IFS research economist Darcey Snape called for a comprehensive, long-term vision from the government aimed at achieving effective change within the SEN funding system. The report suggests considering a reduction in the statutory obligations tied to EHCPs as one potential solution to alleviate pressures on local authorities. Julia Harnden, a funding specialist from the Association of School and College Leaders, expressed her worry that the system is on the brink of collapse due to significant delays in EHCP approval and the detrimental impact on teachers and parents alike. Paul Whiteman, general secretary of the NAHT school leaders’ union, echoed these sentiments, stressing that the current underfunding is causing severe deficits for both schools and councils. In addition, the Department for Education acknowledged the challenges posed by the SEND system, which it inherited, and emphasized its commitment to improving the situation. The government has already allocated substantial budgets to enhance day-to-day services and create more specialist places in mainstream schools. The necessary reforms are imperative not only for addressing the immediate financial deficits faced by local authorities but also for ensuring that children with special educational needs receive the support they require for a successful educational experience. Without prompt action to inject sustainable changes, the outlook for SEN funding in England continues to appear increasingly bleak.