Government's Plan to Absorb Send Costs Sparks Budget Concerns
Published 27 November 2025
Highlights
- The UK government plans to absorb special educational needs (Send) spending from local councils by 2028, potentially impacting school budgets.
- The Office for Budget Responsibility (OBR) forecasts a £6bn annual cost for Send by 2028, with a cumulative council deficit of £14bn.
- Teaching unions and the OBR warn of potential cuts to school budgets, but the Department for Education (DfE) disputes these claims.
- Full details of the Send reforms are expected early next year, aiming to address rising costs and improve support.
- Local councils welcome the change but express concerns over how historical deficits will be managed.
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Rewritten Article
Headline: Government's Plan to Absorb Send Costs Sparks Budget Concerns
The UK government's decision to take over the financial responsibility for special educational needs and disabilities (Send) spending from local councils by 2028 has sparked significant debate and concern over potential impacts on school budgets. This move, announced in the recent budget, aims to address the escalating costs associated with Send provision, which the Office for Budget Responsibility (OBR) projects will reach £6 billion annually by 2028.
Rising Costs and Deficits
The OBR has highlighted a looming fiscal challenge, with council deficits related to Send spending expected to accumulate to £14 billion by 2028. These deficits have been exacerbated by the rising demand for education, health, and care plans (EHCPs), which have doubled since 2016. The statutory override, which has kept these debts off local authority books since 2020, is set to expire in 2027-28, raising questions about future financial management.
Government's Response and Reforms
The Department for Education (DfE) has refuted claims that absorbing Send costs will lead to cuts in school budgets. A spokesperson emphasized that the OBR's projections do not account for upcoming Send reforms, which are expected to be detailed early next year. These reforms aim to ensure early support for children and financial sustainability for councils. Chancellor Rachel Reeves stated that the reforms are focused on creating an effective system for children, parents, and schools, rather than on financial savings.
Concerns and Reactions
Teaching unions and the OBR have warned that if the additional £6 billion in costs is funded through the DfE's core budget, it could result in a 4.9% decrease in mainstream school spending per pupil, contrary to the planned 0.5% increase. However, local government leaders have welcomed the government's commitment to relieving councils of the unsustainable Send spending burden, though they remain concerned about how historical deficits will be addressed.
Helen Miller, director of the Institute for Fiscal Studies, noted that the OBR's warning increases the urgency for the government to implement reforms that could slow spending growth. Meanwhile, Natalie Perera, chief executive of the Education Policy Institute, stressed the importance of not cutting school funding to manage Send pressures.
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Scenario Analysis
As the government prepares to unveil its Send reforms early next year, the focus will be on balancing the need for effective support with financial sustainability. The success of these reforms will likely depend on their ability to address the root causes of rising Send costs while maintaining adequate funding for mainstream schools. If the reforms fail to deliver significant savings, the government may face increased pressure from both councils and educational institutions. Additionally, the handling of the £14 billion council deficit will be crucial in determining the long-term financial health of local authorities and their ability to support Send services.
The UK government's decision to take over the financial responsibility for special educational needs and disabilities (Send) spending from local councils by 2028 has sparked significant debate and concern over potential impacts on school budgets. This move, announced in the recent budget, aims to address the escalating costs associated with Send provision, which the Office for Budget Responsibility (OBR) projects will reach £6 billion annually by 2028.
Rising Costs and Deficits
The OBR has highlighted a looming fiscal challenge, with council deficits related to Send spending expected to accumulate to £14 billion by 2028. These deficits have been exacerbated by the rising demand for education, health, and care plans (EHCPs), which have doubled since 2016. The statutory override, which has kept these debts off local authority books since 2020, is set to expire in 2027-28, raising questions about future financial management.
Government's Response and Reforms
The Department for Education (DfE) has refuted claims that absorbing Send costs will lead to cuts in school budgets. A spokesperson emphasized that the OBR's projections do not account for upcoming Send reforms, which are expected to be detailed early next year. These reforms aim to ensure early support for children and financial sustainability for councils. Chancellor Rachel Reeves stated that the reforms are focused on creating an effective system for children, parents, and schools, rather than on financial savings.
Concerns and Reactions
Teaching unions and the OBR have warned that if the additional £6 billion in costs is funded through the DfE's core budget, it could result in a 4.9% decrease in mainstream school spending per pupil, contrary to the planned 0.5% increase. However, local government leaders have welcomed the government's commitment to relieving councils of the unsustainable Send spending burden, though they remain concerned about how historical deficits will be addressed.
Helen Miller, director of the Institute for Fiscal Studies, noted that the OBR's warning increases the urgency for the government to implement reforms that could slow spending growth. Meanwhile, Natalie Perera, chief executive of the Education Policy Institute, stressed the importance of not cutting school funding to manage Send pressures.
What this might mean
As the government prepares to unveil its Send reforms early next year, the focus will be on balancing the need for effective support with financial sustainability. The success of these reforms will likely depend on their ability to address the root causes of rising Send costs while maintaining adequate funding for mainstream schools. If the reforms fail to deliver significant savings, the government may face increased pressure from both councils and educational institutions. Additionally, the handling of the £14 billion council deficit will be crucial in determining the long-term financial health of local authorities and their ability to support Send services.
