Fixing SEND finance: Five key reforms to build a sustainable system

William Burns, Social Care Policy Advisor

All children deserve the support and care they need to flourish. However, a decade of missed opportunities has left England’s Special Educational Needs and Disabilities (SEND) system for children and young people in crisis.

The Chartered Institute of Public Finance and Accountancy’s (CIPFA) latest report reveals the scale of the SEND system breakdown. Our research highlights five essential reforms to create a simpler, fairer, and financially sustainable system.

Over the past decade, demand for SEND services has increased and outcomes have not improved despite the landmark reforms of the Children and Families Act (2014). Most notably, the number of children with an Education, Health and Care Plan increased by 140% between 2015 and 2024. Funding solutions have seen little to no change to meet this demand.

Furthermore, our latest report found that SEND funding has not been uplifted in line with inflation. In 2013/14, SEND pupils received up to £6,000 in funding, yet this amount has remained unchanged for over a decade. Adjusted for inflation, it should be approximately £8,097 in 2024/25.

Meanwhile, statutory overrides have been used to mask mounting financial distress within local authorities, allowing deficits to grow rather than being properly addressed. This approach - effectively “kicking the can down the road” - has left the SEND system on the brink of collapse.

CIPFA’s new report, ‘Reforming SEND finance: meeting need in a sustainable system’ outlines a clear path forward. The five key principles for reform are as follows:

  • Funding - Allocating resources based on actual needs rather than outdated formulas.
  • Early intervention - Establishing a shared understanding of best practices and defining measurable outcomes.
  • Coordination between partners - Creating a framework for how education, health, and care partners to work together effectively.
  • Market management - Fixing the independent placement market to drive consistency, quality, and value for money.
  • Financial accountability - Giving councils greater flexibility to meet needs while ensuring sustainability.

These reforms were designed with a focus on realistic, actionable goals rather than vague aspirations. Each principle includes short, medium, and long-term objectives, providing a clear roadmap for progress and strengthening the resilience of future SEND decision-making.

For a deeper dive into the current state of SEND and the proposed reforms, download reforming SEND finance report.