Special Educational Needs: Finance

High needs funding for local authorities was increased by over £1 billion (11%) in 2025/26 and funding continues at this increased level in 2026/27. In addition to the high needs funding allocations to local authorities, we are committed to prioritising early intervention and are providing a major increase in funding to help deliver the special educational needs and disabilities (SEND) reforms outlined in the Schools White Paper and accompanying SEND reform consultation documents, investing £4 billion over the next three years. This will reverse the trend of late intervention and escalation in needs.

Local authorities have existing statutory duties to secure appropriate provision for children with SEND in both mainstream schools and specialist settings which they must continue to ensure that they fulfil, alongside moves to make the SEND system more inclusive, aligned with the reforms set out in the Schools White Paper.

The department recognises that local authorities have been operating in a challenging system that has placed significant and growing pressures on resources. This government is committed to supporting local authorities with their Dedicated Schools Grant (DSG) deficits as we transition to a reformed SEND system. All local authorities with a SEND deficit will be eligible in 2026/27 to receive a High Needs Stability Grant covering 90% of their high needs-related DSG deficit accrued up to the end of 2025/26. Arrangements for additional support for deficits arising in 2026/27 and 2027/28 will be set out before the statutory accounting override ends in March 2028.