Overview

• A Policy Exchange report estimates combined annual spending on children's mental health, SEND and related welfare at roughly £16bn to £16.6bn.
• The report blames overdiagnosis and incentives to seek formal labels for surging demand, citing a 48% rise since 2021 in children accessing NHS mental health services.
• Recommendations include limiting EHCPs to pupils in special schools, making them non‑statutory, and giving schools ring‑fenced SEND budgets with discretion over use.
• Proposed welfare changes include doubling the qualifying duration for Personal Independence Payment to 18 months and reviewing Child Disability Living Allowance criteria and reassessments.
• Official data show 638,745 EHCPs were in place in January 2025, up 10.8% year on year, as the education secretary vows to protect legal rights and parent groups raise objections to curbs.