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Councils: 'Broken' special needs system will trigger debt crisis

July 25, 2024

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The Guardian

A £5bn debt crisis caused by out of-control overspending on special educational needs could explode in less than two years, bankrupting scores of England's local authorities, the government has been warned.

- Patrick Butler

Councils: 'Broken' special needs system will trigger debt crisis

The crisis stems from the failure to properly fund a huge increase in demand for special education needs and disability (Send) services over the past decade, triggering an "existential" crisis for councils which have "no obvious means of paying off the debt".

Council leaders have told ministers the Send system, which was introduced by the coalition government 10 years ago, is in meltdown, and have described it as broken, unaffordable, and failing hundreds of thousands of children.

The overspend is the legacy of the last Tory government's decision to allow Send overspending to continue for years under a special "override" arrangement that allowed councils to keep these rapidly mounting debts off municipal balance sheets.

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