The SEND system is now “very likely” to become financially unsustainable, while the risk that council finances will impede “essential” support services is “critical”, the Department for Education has warned. The DfE has upgraded its risk register on the two issues, showing the scale of the challenge ahead for the new government with systems on the verge of collapse. Here’s what we learned from the department’s 1. 鈥榁ery likely鈥 SEND system will be unsustainable Schools Week revealed earlier this year how more than a third of councils with 鈥渟afety-valve鈥 deals to plug high-needs deficits face bankruptcy, despite being set to receive more than 拢1 billion in government bailouts before the end of the decade. The DfE said the risk that 鈥渉igh needs pressures continue to outstrip available funding significantly, making the SEND and AP system financially unsustainable鈥 has been upgraded to 鈥渃ritical-very likely鈥. Despite “substantial cash increases in high needs funding, in the medium term (1-4 years) high needs costs continue to rise significantly”. This would “threaten the overall financial stability of local authorities” once an over-ride allowing councils to keep SEND deficits off their main books expires in 2026. This would undermine “efforts to improve educational outcomes for pupils with SEND and improve parental confidence in the SEND and AP system”. A DfE spokesperson said the report “lays bare the enormous challenges” government faces across education but is “determined to deliver better life chances for all young people”. 2. Risk to council support services 鈥榗ritical鈥 The DfE has upgraded its risk register to state that it is now 鈥渃ritical鈥 and 鈥渓ikely鈥 that councils鈥 financial challenges will 鈥渋mpede delivery of essential support services and reform activity鈥. This could happen 鈥渁cross childcare, special educational needs and disability and alternative provision and children鈥檚 social care (CSC) worsening outcomes for the most vulnerable and exacerbating cost pressures鈥. This risk was 鈥渆scalated to top-tier in the year鈥. The DfE warned that in children’s social care, “predominantly driven by SEND and AP”, rising numbers of looked after children, placement sufficiency, placement costs, market charging and workforce are “contributing to the overall risk of financial instability”. 3. 拢67m spent on RAAC According to the accounts, in the last financial year, the DfE spent 拢67 million in response to RAAC, with the collapse of school buildings still rated 鈥渃ritical 鈥 very likely鈥 Most of this was on mitigation works (拢53.8 million), but the DfE also spent 拢8.6 million on identification surveys and a further 拢3.8 million on revenue support for schools and councils. 4. DfE may have outed a whistleblower The DfE said it had eight personal data breaches last year that it deemed reportable to the Information Commissioner鈥檚 Office, up from two in 2022-23 and seven the year before. In one instance, 鈥渋nformation was shared with an organisation that may have allowed the identification of an individual making a whistleblowing allegation鈥. However, no action was taken by the ICO. Cases also involved information on 鈥渁lleged misconduct鈥 being 鈥渟ent to a generic inbox instead of an individual鈥. Documents relating to misconduct 鈥渨ere posted to the wrong individual鈥. 5. 拢8k severance packages for Gibb and Halfon Departing ministers Nick Gibb and Robert Halfon each received a 拢7,920 severance payment. Gibb stepped down as schools minister last November, announcing he was seeking diplomatic post and would stand down as an MP. Halfon announced his retirement from the House of Commons in March and quit as skills minister the same day. 6. Staff turnover at record high The rate at which staff left the DfE was higher last year (13 per cent) than at any point since 2019-20 (9 per cent). 鈥淢ost employees leave to transfer to another government department鈥, but turnover in the wider civil service has also increased. The department also ran a voluntary exit scheme, which contributed to an increase in the overall volume of leavers. Two payouts to departing members of staff across DfE each cost the government between 拢100k and 拢150k. In total, 30 exit packages were agreed across the group, costing 拢1.265 million. In the previous year, there were 384 exits, costing the group more than 拢20 million. 7. 拢10m on consultants Spending on consultancy across the DfE and its agencies stood at 拢10.1 million in 2023-24, its highest level since 2019-20 (拢12.7 million) and up more than 50 per cent on the previous year (拢6.6 million). The DfE said that 鈥渨hen used appropriately, consultancy can be a cost effective and efficient way of getting the temporary and skilled external input that the group needs鈥. This week, chancellor Rachel Reeves vowed to cut departmental spending on consultants. 8. DfE lost 拢1.2m over Michaela Stevenage plan Accounts detail a 拢1.187 million loss relating to 鈥渉istoric costs associated with the withdrawn Michaela Community School Stevenage project鈥. Plans for a new off-shoot of Britain鈥檚 鈥渟trictest school鈥 were scrapped in 2022 as there was no longer the 鈥渂asic need鈥 for extra school places. The department 鈥渃onsiders a project withdrawal or cancellation as better value for money in progressing with a free school project that will not be viable in the future鈥. The DfE also wrote off debts owed by Queen Elizabeth Grammar School Penrith (拢502k) and Sandbach School (拢438k) to 鈥渁id re-brokerage鈥. These are on top of debts written off by the ESFA.