A new report from the National Audit Office (NAO) has found that England’s special educational needs (SEN) system is not delivering better outcomes for children, is financially unsustainable and urgently needs reform.
According to the report, despite a 58% increase in funding over the past decade - rising to £10.7bn in 2024-25 - this boost has not improved outcomes for the 1.9 million children supported by the system. The report also states that families are losing confidence as the system continues to fall short of expectations, with many children facing long delays in getting the support they need.
The report highlights that two-fifths of local authorities could face bankruptcy by March 2026 due to rising SEN costs and an estimated £4.6bn funding gap. Current government programmes, such as Safety Valve and Delivering Better Value, are not enough to resolve these financial pressures.
The NAO is recommending whole-system reform to ensure sustainable funding and better outcomes for children with SEN. It also suggests improved collaboration between the Department for Education and the NHS, and the development of a long-term plan for inclusivity in mainstream education.
Rt Hon Sir Julian Smith KCB CBE MP, a long-time advocate for more SEN support, said: "This report clearly highlights the urgent need for significant improvements in the SEN system, which echoes the concerns I have heard from many families in our constituency.
“Despite increased funding, too many children with SEN are not receiving the support they deserve. I am concerned that local authorities are facing financial difficulties due to SEN costs and I will continue pressing the government to ensure that every child, regardless of their needs, gets the chance to thrive in a supportive, inclusive system that works for them and their families."
