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SEND spend freeze has led to EHCP rise, MPs say

SEND funding rates would be 40 per cent higher if they had kept pace with inflation, report from parliamentary group finds

Freddie Whittaker

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Funding rates for pupils with special educational needs would be around 40 per cent higher today if they had kept pace with inflation, a committee of MPs has found, warning the freeze is pushing up education, health and care plan (EHCP) numbers.

The amount of 鈥渘otional鈥 funding in a mainstream school鈥檚 budget for delivering SEND support has remained at 拢6,000 since the system was reformed in 2013, as has the 拢10,000 base rate special schools receive for each pupil.

A report out today from the All-Party Parliamentary Group for Special Educational Needs and Disabilities warned that 鈥渄espite increases in funding, the system remains fragmented and under-resourced, with significant weaknesses in coordination, staffing, accountability and early intervention鈥.

The document warned that the 鈥渓ack of inflationary increases in budgets such as the school notional funding and the special school place funding鈥 have resulted in the 鈥渋ncreasing and earlier pursuit鈥 of EHCPs.

This in turn has also led to an increase in the 鈥渟ubsequent high needs top-up that come with them than when they were first introduced over a decade ago鈥. 

The spending power of the notional and special school place funding has 鈥渞educed since it began in 2013. 

鈥淚f we were to consider the Bank of England inflation calculator, notional funding, if it reflected inflation over that period would now be worth 拢8,386 in 2025, and special school place funding would be worth 拢13,998,” the report said.

鈥淔or a special school that had retained 100 pupils on roll for that period, the difference in their budget would be an additional 拢399,800 in 2025.鈥

The group called on the government to base funding allocations on 鈥渙n robust assessments of need鈥, and said local areas should be empowered to 鈥渋nnovate鈥.

鈥淭o fully realise the government鈥檚 drive for inclusion in schools, core mainstream school budgets need to reflect the level of need they are now expected to support. 

鈥淔or the majority of pupils with low-complexity, high-frequency SEN, core mainstream school budgets must be sufficient to meet their needs without recourse to high-needs top up funding.鈥

Government will set out SEND reforms in a white paper later this term. A government adviser previously said proposals to scrap EHCPs were being considered.

A report by the Institute for Fiscal Studies last week said EHCP reforms were 鈥渓ong overdue鈥. The number issued has risen by 80 per cent since 2018.

However, the study warned the changes risk turning into 鈥渨elfare reforms mark 2鈥 if they are focused on solely cutting costs.

鈥淭o avoid this, the government needs to be candid: the current system is failing many of the children it is meant to support, despite billions in additional spending and a complex framework of legal entitlements.

鈥淎 successful reform should articulate a clear vision for a system that supports all children while delivering better value for money.鈥

Labour MP Olivia Blake, chair of the SEND APPG which is funded by the NAHT union, said the system is in “urgent need of reform. Despite increases in funding, the system remains fragmented and under-resourced, with significant weaknesses in coordination, staffing, accountability and early intervention.”

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