Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the impact on local authority finances of accumulated high needs Dedicated Schools Grant deficits ahead of the statutory override ending in 2027-28.

The department has set out plans for a reformed special educational needs and disabilities (SEND) system in the recent Schools White Paper. The department's assessment of future SEND spending will be updated following the SEND consultation.

We have set out plans to address high needs deficits up to the end of 2025/26, providing grants to cover 90% of each council’s deficit once they have produced and received approval for a strong plan to drive sustained and energetic action in accordance with our new system set out in the Schools White Paper, which will begin to improve outcomes for children and bring costs under control through effective early intervention stopping needs from escalating.

For deficits that arise in 2026/27 and 2027/28, local authorities can expect that we will continue to take an appropriate and proportionate approach, though it will not be unlimited.

From 2028/29, SEND spending will be covered by the overall government DEL budget, meaning local authorities are not expected to fund future SEND costs from general funds, once the Statutory Override ends at the end of 2027/28.