From Rates to Ruin

The Ongoing Crisis in Local Authority SEND Spending

February 11, 2026

This paper warns of the looming crisis of local authority SEND spending in England. In just 6 years, local authority spending on SEND provision has increased 58.5% in real terms – equivalent to over £5 billion in additional spending. Half of all schools funding since 2015 has been spent on SEND. Now, with the Government promising to pay down 90% of council SEND deficits in the autumn – which has been set to bankrupt three quarters of councils by 2027 – and to assume full responsibility for local authority SEND spending from 2028, this paper makes the case that urgent reform is needed to put SEND spending on a sustainable footing.

The report reveals:

Since 2021/22 SEND spending in England has grown on average by 10.3% in real terms. If this is sustained – and the system goes unreformed – total council SEND spending could hit £18.2 billion annually by 2028 when central Government assumes responsibility.
SEND spending has grown faster in wealthier areas, increasing by 65% in real terms in the 50% most affluent council areas since 2018/19, compared with 51% in the 50% least affluent local authorities.
Spending on SEND transport, including home-to-school travel, has more than doubled in 42 local authorities. On average spending on admin has risen 135% in real terms since 2018/19, whilst 30% of councils have made cuts to their specialist support services.

Endorsed by two former Labour Education Secretaries, Rt Hon Ruth Kelly and Rt Hon Baroness Morris of Yardley PC – and with a Foreword from Cllr Sir Stephen Houghton CBE, England’s longest serving council leader – the report urges the Government to retain its commitment to meaningful reform of England’s SEND system.

The launch of this report was covered by: