Councils 'at risk of insolvency' due to costs of special needs education

Nearly 20 councils have warned publicly that they are at risk of insolvency because of multibillion-pound debts caused by years of overspends on special educational needs support, the Guardian can reveal.

- Patrick Butler Pamela Duncan Matthew Pearce

Overspending on special educational needs and disability (Send) services in England is forecast to grow by nearly £2bn within 12 months, our investigation shows.

Councils will see Send deficits rising by 54% on average, with some anticipating that accrued debts will increase by millions of pounds every month as they face soaring demand.

The deficits – currently totalling £3.4bn – will hit £5.2bn in 12 months' time. At least 18 councils have warned the debts put them at risk of insolvency unless ministers intervene.

"The deficits are pushing councils all over England to the financial brink. The clock is ticking, and councils are being left in limbo with significant uncertainty over the future of services," said William Burns, social care policy adviser for the Chartered Institute of Public Finance and Accountancy (Cipfa).

Mass defaults on Send deficits would cause chaos, said Cipfa, because councils that declare effective bankruptcy would be forced to rein in spending in all areas. It says up to 75 councils are at risk.