The Local Government Association (LGA) has reiterated its warning that councils face potential insolvency due to soaring special educational needs and disabilities (SEND) costs.
A new survey by the LGA has revealed that eight in 10 English councils could face bankruptcy once the temporary ‘statutory override’, which allows councils to keep SEND deficits off their main balance sheets, ends in March 2028.
The LGA warns that deficits linked to SEND provision have ballooned to unsustainable levels, with 95% of councils reporting high-needs dedicated schools grant (DSG) overspends.
Nearly four in five councils say they will be unable to set balanced general budgets once the override lapses, risking cuts to services or financial collapse.
The Government is expected to set out its plans to reform the SEND system in the upcoming Schools White Paper.?
The LGA is urging the UK Government to write off historic SEND deficits and introduce comprehensive reforms.
‘The huge costs in providing support are threatening most councils with insolvency,’ said Cllr Amanda Hopgood, chair of the LGA’s Children, Young People and Families Committee.
‘This is why we are urging Government to write off councils’ high needs deficits in the final Local Government Finance Settlement.’ Cllr Hopgood also added that the challenges within the SEND system are not just financial.
‘The Schools White Paper must deliver brave and bold reform where more children are able to get the?support?they need in a mainstream school, without having to go down the route of needing a statutory plan,’ she said.
.png)
