England’s councils have warned that the special educational needs and disabilities (SEND) system is ‘on course for total collapse’ without urgent reform, as research shows the SEND deficit is set to hit £18bn.

New research by County Councils Network (CCN) and Isos Partnership shows that the in-year deficit councils are accruing every year is likely to reach £4.4bn in 2029 if nothing changes – a cumulative SEND deficit of £18bn.

Demand has soared, with Education, Health and Care Plans (EHCPs) reaching a record 638,000 this year and projected to climb to 840,000 by the end of this Parliament, according to the research.

The rise in demand for SEND support has forced councils to rely on expensive private school places, which have risen 165% since 2015. Local authorities are on course to be spending £3.2bn a year on private school placements for young people with EHCPs.

Despite councils investing £30bn more in SEND services over the last decade, neither educational outcomes nor family satisfaction have improved, according to CCN’s findings.

CCN is calling for Government to wipe existing deficits and deliver root-and-branch reform to prevent further financial collapse.

Cllr Matthew Hicks, Chair of the County Councils Network, said he was ‘massively disappointed’ by the Government's decision last month to delay the schools white paper.

‘Time is of the essence: the Government’s continuing inaction only compounds the difficult experiences for families, letting down thousands of young people whilst pushing councils to the financial brink.’

Cllr Amanda Hopgood, Chair of the Local Government Association’s Children, Young People and Families Committee, added the Government should act in this month’s Budget and ‘write off councils’ high needs deficits.’

The Department for Education has been contacted for comment.

Check out: Autumn Budget Insights: SEND reform needed to break vicious cycle.