Sixteen of London’s 33 local authorities are at risk of bankruptcy due to SEND funding pressures, London Councils warns.
The cross-party group forecasts that boroughs’ deficits for special educational needs and disabilities (SEND) provision will total £500m by the end of 2026-27.
There is a ‘statutory override’ currently in place which allows councils to keep high needs deficits off their main revenue accounts until March 2026.
London Councils estimates that 16 boroughs would be in danger of having to ask for exceptional financial support or issuing a Section 114, effectively declaring bankruptcy, if no support is made available by next March.
The Department for Education has previously said it would set out how it planned to support councils to deal with their historic and accruing deficits this year.
Cllr Ian Edwards, London Councils’ executive member for Children and Young People, said: ‘Boroughs are determined to provide high-quality support for all young Londoners with SEND, but we’re extremely concerned by the unsustainable finance pressures we face.
‘The sums don’t add up. Government funding has failed to keep pace with rising levels of SEND support need in the capital, leading to major deficits.’
