Jam tomorrow? SEND funding and the Spending Review
The Chancellor's Spending Review highlighted crucial issues around SEND funding. With major reforms planned but no new money in 2025/26, and rising costs pushing councils to the brink, what is the future for SEND provision?
Jam tomorrow? SEND funding and the Spending Review
“The rule is, jam to-morrow and jam yesterday—but never jam to-day.” ― Lewis Carroll, Through the Looking-Glass and What Alice Found There
As LGFL Director Rita Gupta explains, the Chancellor of the Exchequer’s Spending Review contained key reminders that provision for SEND children is still a hot topic for educators, councils and parents alike.
As family lawyers specialising in separation and divorce involving SEND children, we took a keen interest in what was being announced by the Chancellor (and what was tucked away in the printed version of the report).
We also noted the concerns of key players and saw three key points of interest.
1. There is a major reform of the system coming, but only after a White Paper is published in the autumn.
2. There will be no new SEND money in 2025/26, but £547m is earmarked for 2026/27 through the Transformation Fund.
3. The costs of SEND provision are pushing some councils towards overspending their budgets, putting them in danger of issuing section 114 (bankruptcy) notices (5) due to SEND financial pressures.
1. “Reform cannot come quickly enough”
There is really no debate that the system of support for children with Special Educational Needs and Disabilities (SEND) does need reform. As an article in The MJ (the Municipal Journal) stated:
“Reform of SEND cannot come quickly enough. With deficits increasing and liabilities for SEND accruing interest on the existing debt, this issue can no longer be ducked.” (2).
Even the government agrees. The full published version of The Treasury Spending Review states that:
“The government will reform the current Special Educational Needs and Disabilities (SEND) system. Details of the government’s intended approach to SEND reform will be set out in a Schools White Paper in the autumn. The government will also set out further details on supporting local authorities as we transition to a reformed system as part of the upcoming local government funding reform consultation.”(4)
In other words, there will be change - but not before a White Paper and a funding reform consultation first.
2. No new SEND money in 2025/26
There will be extra funding available for the “Reform of the SEND system to improve pupil outcomes” as part of the £3.25 billion Transformation Fund, the Spending Review states (4, page 16). However, the £547m allocated for this will only come in for the funding year 2026-27, when the statutory override ends.
3. The rising costs of SEND provision
The lack of additional provision now will not be welcome news for the many local authorities already struggling with the cost of SEND provision within the requirements of Education, Health and Care Plans (EHCPs). According to the Local Government Association chair Louise Gittins:
“Over half of councils have warned they will become insolvent next year when the statutory override flexibility ends (keeping council deficits on their SEND spending off accounts until March next year).” (1)
The London Councils are also concerned. They have seen a 9% increase in the number of London children holding an ECHP, which equates to 93,487 in 2024.
“Sixteen of London’s 33 local authorities are at heightened risk of bankruptcy because of insufficient schools funding from the government … Grants to councils for supporting children and young people with special educational needs and disabilities (SEND) have not kept pace with rising pressures, leading to severe budget deficits.”
London Councils have also forecast that unless the situation changes, the total deficit for London boroughs’ SEND provision will reach £500m by the end of 2026-27. (3)
SEND provision after separation
As family lawyers, we fully understand the frustrations of parents of SEND children as they grapple with an already overwhelmed SEND system, as described in our previous article here: (https://lgfamilylawyers.co.uk/send-neurodiversity-and-separations-an-inside-view/)
Our empathetic and pragmatic approach ensures that the interests of all your children are put first when drawing up financial agreement and co-parenting arrangements, regardless of the latest government position or policy.
We can also include special private school fees in any agreement, to ensure continuity of education and stability for SEND children during the separation process.
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About the author
Rita Gupta is Co-founder and Managing Director of family law firm LGFL Ltd, serving family law for clients in the Reading and Thames Valley area, across the UK and for international clients involved in UK divorce cases. She has featured as a family law expert on national TV and radio, including BBC Radio 5 Live with Nicky Campbell, LBC, GB News with Darren McCaffrey and local TV and radio.