Special Educational Needs and Disabilities Funding

The Government inherited a “lose, lose, lose” SEND situation. The Tories even described it as such in their own words, with the Deputy Chief Whip saying that they should hang their heads in shame over what they left behind. Since entering government, Labour has restructured the Department to put SEND at its heart. We have invested £1 billion into services, and £740 million to create additional specialist places. But we are under no illusions that reform to the system is desperately needed, and we have brought in expert advisers to help us achieve that.

In London alone, the deficit for this year is estimated to be £313.8 million, but that will grow to £502 million next year unless more money is put in. Clearly, there is a problem that we need to address. Ideally, those with special educational needs should be taught in mainstream education. However, it is much cheaper for local authorities to have in-house provision and special needs schools in the borough, rather than send children to another more expensive borough. Harrow was granted a new special educational needs school under the last Government. Will the Minister confirm that it will proceed? It has the support of all the headteachers and cross-party support.

The hon. Gentleman described the challenge that resulted from 14 years under the previous Government. We recognise the strain that the rising cost of SEND provision is putting on local government, which is why we will be setting out plans to reform the SEND system, with further details to come this year, including how local authorities will be supported to manage their historical and accruing deficits. Decisions on new school provision and buildings will also be made in due course.

Has the Department give due consideration to updating the allocation policy? It is currently based on historical funding, which leaves boroughs such as Barking and Dagenham at a disadvantage for SEN provision compared with inner-London boroughs.

The structure of the high needs funding formula is largely unchanged in 2025-26, as we take time to consider what changes might be necessary to ensure a fair system that directs funding to where it is needed and that will support our future SEND reforms. We will continue to consider where changes to the formula will be required. The Secretary of State visited a school in Dagenham in December and saw at first hand its excellent work and the difference it is making to children with special educational needs in my hon. Friend’s area.

I draw the attention of Members to my entry in the Register of Members’ Financial Interests. I have a school in my constituency that is very good at helping students with education, health and care plans—so much so that it is struggling with the number of students who have EHCPs. Will the Minister meet me to discuss this issue and wider SEND issues in my constituency?

The Government want to ensure that education, health and care plans are issued quickly, to help children and young people achieve and thrive. Officials work continuously with local authorities to offer support where there are issues with timeliness, to ensure that effective recovery plans are in place. I am sure that a meeting could be arranged for the hon. Gentleman to discuss his particular concerns in more detail.

I call the Chair of the Education Committee.

The deep crisis in our SEND system, which is one of both funding and delivery, is letting down far too many children, and requires urgent action. Will the Minister update the House on the timing of the Government’s plans for SEND, and provide assurances that there will be full engagement with parents, professionals and young people with SEND on any such plans?

We recognise the unprecedented pressures that local authorities are under and that the system does not currently deliver the best education possible for families, who want the best for their children, as quickly or thoroughly as it should. We will be announcing more details of reform plans this year. We consult continuously with families, representatives of families and local authorities, and we will work closely with my hon. Friend’s Committee.

Across the 46 schools in Mid Norfolk, SEND provision is the No. 1 issue for parents, teachers and staff. Contrary to the party political broadcast from Ministers, in the last 14 years I was lucky to secure £7 million from the Conservative coalition for a new school and Conservative county council funding for a new school in Swaffham. Officials in the Department for Education have also been constructive in working on a pathfinder for rural hub-and-spoke support. Parents in rural areas really struggle. What are Ministers doing to take that forward to support small rural schools to access specialist help in hubs?

I know that the hon. Gentleman raises his concern in all sincerity. We will continue to work with all partners, parents, teachers, local authorities and indeed the NHS on how we reform our SEND system and ensure that the support that is needed reaches every part of every community. Our ambition is for a more inclusive mainstream school system that draws on the right education and health specialists to ensure that every child receives the support that they deserve.

Far too many children with complex learning disabilities and autism have been failed by the system and end up having a place not in their local community, but in institutions. That disproportionately affects black children, which is synonymous with the ’60s and ’70s when they were classified as “educationally subnormal”. Will the Minister explain what work is being done to identify the number of children who have been institutionalised? What work has been undertaken to review and amend those situations?

I know that this issue is important to my hon. Friend. She has, quite rightly, been raising it through a number of avenues. I will continue to work with her to ensure that we learn from the past, when far too many children were let down, and that, as we reform our SEND system, it is fit for purpose and serves every child.

I call the Liberal Democrat spokesperson.

Some of the huge cost pressures on SEND budgets are being driven by the lack of state special school places, with many councils forced to send children with complex needs to private special schools that can cost two to three times more than local authority provision. There are many brilliant independent special schools providing value for money, yet we know that some private equity firms are profiteering with upwards of 20% profit margins from the schools that they run. Why will Ministers not back Liberal Democrat amendments to the Children’s Wellbeing and Schools Bill to include special schools in their proposed profit cap backstop for children’s social care providers?

The Children’s Wellbeing and Schools Bill is a landmark piece of legislation that the hon. Lady knows brings forward really important changes that will keep children safe as well as reform our school system so that it serves all. We are focused on improving inclusivity and expertise in mainstream schools and ensuring that we do have special schools that can cater for those with the most complex needs. Our priority is restoring the trust that parents should have that their child will get the support they need. We will do all that is necessary as part of our SEND reforms to ensure that that is delivered.