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Government to Shift SEND Funding to DfE From 2028 as OBR Flags £6.3 Billion Pressure

A 1.7% real-terms fall in mainstream per-pupil funding looms if the cost is met from the core schools budget.

Overview

  • The Budget confirms SEND funding will move from councils to the Department for Education in 2028-29, with the Treasury stating councils will not be expected to cover future costs from general funds once the statutory override ends in 2027-28.
  • The Office for Budget Responsibility estimates a £6.3 billion cost in 2028-29, rising to about £9 billion by 2030-31 under current policy.
  • The OBR says no savings have been identified to offset the new pressure and warns meeting it from within the DfE’s £69 billion core schools budget would cut mainstream funding per pupil by 1.7% in real terms instead of a planned 2.4% increase.
  • Historic SEND deficits on council books could reach around £14 billion when the override expires, with the OBR warning many local authorities would be very likely to issue section 114 notices without a solution.
  • School leaders and education groups urge ministers not to cut classroom budgets, while further details are due at December’s provisional Local Government Finance Settlement and a schools white paper in January.