Special education system faces £4.6bn deficit as Ipswich MP warns of 'desperate' situation

The big picture: The National Audit Office (NAO) found the system, which supports 1.9 million children, could see local authority deficits reach £4.6bn by March 2026 despite funding increasing by 58% over a decade to £10.7bn.

Why it matters:

• Two-fifths of local authorities risk effective bankruptcy by March 2026 partly due to special educational needs (SEN) costs.

• Only half of Education, Health and Care (EHC) plans were issued within the 20-week target in 2023.

• Demand has soared, with a 140% increase in children needing EHC plans since 2015.

What they're saying: Ipswich MP Jack Abbott said the findings were "tragically familiar" to Suffolk families who have "repeatedly warned about the desperate state of Suffolk's SEND services for years."

"People have utterly lost faith in a system that was broken long ago," Abbott said. "It will take time for the lived experiences of children and young people to improve, but I am unflinchingly committed to delivering the support, and the justice, that families need and deserve."

Catherine McKinnell, Minister of State for Education, recently acknowledged the problems, stating: "The local area SEND inspection by Ofsted and the Care Quality Commission (CQC) for Suffolk local area partnership in November 2023 found widespread and/or systemic failings leading to significant concerns about the experiences and outcomes of children and young people with SEND."

She also laid out the government's plans to address them:

• Local action plan submitted: Suffolk's local area partnership has created a priority action plan to address the failings, including improving EHC plan timeliness.

• Government oversight increased: The Department for Education is monitoring progress through deep dive and stocktake meetings.

• Expert support commissioned: An expert SEND advisor will guide Suffolk's improvement efforts, focusing on EHC plan timeliness.

• Funding for educational psychologists: While specific funding for Suffolk wasn't mentioned, the government is investing £21 million nationally to train 400 more educational psychologists.

Looking ahead: The NAO warns that by 2027-28, there could be a funding gap of between £2.9bn and £3.9bn when comparing current funding against forecast costs.

The bottom line: The watchdog has made nine recommendations, including a whole system reform, developing a shared understanding of how identifying and supporting SEN should be prioritised and creating a long-term plan for inclusivity across mainstream education.