Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Accepted
Fundamental reform of the SEND system is essential to address ongoing deficits.
Conclusion
Iain Murray from CIPFA warned that even if these deficits were written off, local authorities would immediately start to accumulate new deficits due to high levels of demand in SEND.71 MHCLG told us that there was huge amounts of work currently going on in central government on special educational needs funding, specifically on the statutory override, and government plans to publish details as part of the spending review in June and the provisional local government finance settlement in the autumn.72 MHCLG was clear that any plan would have to involve reform of the SEND system, as well as a plan for local authorities to manage their deficits.73 HM Treasury added that the upcoming spending review would aim to set out a sustainable position for local government in regard to special education needs funding for the whole of the spending review period.74 Local government reform
Government Response Summary
The government agrees, outlining a phased transition to a new SEND system with a White Paper by Autumn 2025 and an extension of the Dedicated Schools Grant Statutory Override to 2027-28 to help local authorities manage deficits.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Target implementation date: end of 2025 5.2 This government recognises the pressures local authorities are facing because of their Dedicated School Grant deficits. The Department for Education Spending Review settlement confirmed funding for reform of the current Special Education Needs and Disabilities (SEND) system, details of which will be set out in a White Paper in Autumn 2025. 5.3 The government will commence a phased transition process to a new SEND system which will include working with local authorities to manage their system, including deficits, alongside an extension to the Dedicated Schools Grant Statutory Override, previously due to end in March 2026, until the end of 2027-28. The government will set out more detail at the provisional Local Government Finance Settlement on the plan for supporting local authorities with both historic and accruing deficits.