Jurisdiction(s):
United Kingdom

Ending the statutory override: central government takeover of SEND deficits from 2028/29 and the governance, accountability and funding challenges for reform

Published on: 18 December 2025

Published by a LexisNexis Local Government expert

Legal News

Article summary

In the words of the Education Committee, the special educational needs and disabilities (SEND) system is ‘broken’ ()

The current SEND framework was never built to handle today’s caseload. Outlays are rising to unsustainable levels while results worsen and trust has ebbed away. For five years, ministers have relied on a statutory override to keep SEND shortfalls off council balance sheets—an accounting fix that alone has stopped nearly half of local authorities from tipping into effective insolvency. This override lapses in March 2028; by then, the Office for Budget Responsibility (OBR) expects cumulative gaps to total £14bn. While the last administration largely looked on, Labour—credit where due—is beginning to move, with reforms slated (after repeated slippage) for early 2026. Last week’s budget pledge to centralise SEND costs has given councils firmer medium‑term financial certainty, vital for strategic planning. It also signals the government is taking the reins: from 2028/29, all subsequent deficits—projected at £6bn in year one—will be met centrally...

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