A recent report by the National Audit Office (NAO) has raised serious concerns about the state of special needs education in England, revealing that despite record spending, there has been no noticeable improvement in the lives of children with special educational needs (SEN). Richard Adams, our Education Editor, reports that the cost of special needs education has skyrocketed to £10 billion a year, with projections indicating that the number of children and young people entitled to education, health, and care plans (EHCPs) could double to 1 million in the next decade.
In an exclusive interview, Gareth Davies, head of the NAO, stated, “Despite the Department for Education increasing high-needs funding, the current SEN system is not effectively serving children and their families. The actions being taken are unlikely to resolve the ongoing issues.”
Local authorities are facing mounting pressures due to rising demand for special school placements and funding for essential specialists like therapists and psychologists. Davies emphasized, “The government has not yet devised a solution to manage the deficits local authorities are facing due to SEN costs, and ongoing savings programs will not rectify this.”
When asked about the government’s approach, Davies noted the need for urgent reevaluation of how funding is allocated. “With current spending exceeding £10 billion annually, and predictions of increased demand, it’s critical for the government to consider more effective investment strategies, such as fostering inclusive education and developing a cohesive approach across the system.”
Bridget Phillipson, the Education Secretary, addressed the report’s findings, acknowledging that the system had been “neglected to the point of crisis” under the previous administration. She expressed her commitment to restoring trust in a system that many families depend on. “We cannot afford to engage in short-term fixes when it comes to the futures of our most vulnerable children,” Phillipson said. “Reforms will take time, but with an emphasis on mainstream provision and early intervention, we are determined to bring about the necessary changes.”
The NAO report forecasts a dramatic rise in the number of children needing statutory support, predicting an increase from 576,000 this year to over 1 million by 2032-33. Notably, autism spectrum conditions are expected to see the steepest rise, having already increased from 57,000 diagnoses in 2015-16 to 132,000 last year.
Education leaders have echoed the alarming conclusions of the NAO report. Tom Rees, chief executive of the Ormiston academies trust, stated, “The urgency for reform in the SEN system has never been clearer. This represents one of the most critical and complex educational challenges of the next decade.”
Richard Kramer, CEO of the charity Sense, highlighted the emotional toll on families navigating the education system. “Families are feeling utterly disillusioned,” he explained. “We are hearing stories from parents who have had to dip into savings meant for their children’s futures or even leave their jobs to advocate for their basic rights.”
As the financial strain on local authorities intensifies, the NAO’s analysis comes amid warnings that SEN spending deficits could push these councils toward bankruptcy. Arooj Shah, chair of the Local Government Association’s children and young people board, voiced the urgent need for reform in the upcoming budget. “We are hoping the government will outline a plan to adequately fund and reform the SEND system, so that children can receive the support they so desperately require,” Shah stated. There are significant concerns that without intervention, councils may face severe budget cuts as the temporary financial safeguards expire in March 2026.