England’s Special Needs Funding Crisis Risks £8bn Council Deficits by 2027, IFS Warns

The Institute for Fiscal Studies calls for urgent reform as rising demand for special educational needs support strains local authority budgets to breaking point.

• The number of pupils with Education, Health, and Care Plans (EHCPs) has surged by 71% since 2018, driven by increasing diagnoses of autism and other needs.
• Local authorities face a combined £3.3 billion deficit in 2024, with projections suggesting this could exceed £8 billion by 2027 without systemic changes.
• Government funding for high-needs education has increased by 59% over the past decade, but it has not kept pace with the growing demand for support.
• The IFS report suggests reducing statutory obligations tied to EHCPs and expanding special needs provision in mainstream schools, though such changes would require significant investment and systemic reform.
• Education leaders warn that delays in assessments, insufficient funding, and a lack of specialist resources are failing children, parents, and schools alike, with the system described as being on the brink of collapse.

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