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SEND overhaul unlikely to curb rising costs before 2030, government concedes

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SEND overhaul unlikely to curb rising costs before 2030, government concedes

The cost of supporting children with special educational needs and disabilities (SEND) is set to continue rising for much of the decade, despite a sweeping overhaul of the system unveiled in the government’s long-awaited schools white paper.

Ministers have confirmed that education, health and care plans (EHCPs), the legally binding documents that guarantee tailored support, will gradually be scaled back for many pupils as a new system of specialist provision is introduced. However, while the reforms are phased in, the number of EHCPs is expected to keep climbing.

EHCP numbers have doubled over the past ten years, pushing annual SEND spending to around £12bn. Government forecasts suggest that by 2029–30 more than 8 per cent of children could hold an EHCP before numbers begin to decline. After that point, the total is projected to fall by around 270,000, returning to roughly today’s level of 640,000. Officials expect spending to stabilise at current levels by 2035, though they have cautioned that longer-term projections remain uncertain.

Bridget Phillipson said the reforms are designed to reduce the adversarial nature of the current system, which often sees families locked in lengthy disputes with local authorities. While the government initially appeared to signal that EHCPs might be scrapped entirely, ministers have now clarified that families will still be able to request them, particularly for children with the most complex needs. However, mediation will replace tribunal proceedings in most cases where support levels are contested.

Under the new framework, schools will be legally required to publish inclusion strategies setting out how they will support SEND pupils and will be assessed on their performance by Ofsted. By the end of the decade, children with additional needs are expected to receive individual support plans, described as a digital “passport”, intended to reduce reliance on formal EHCP applications.

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The revised model will introduce three layers of additional support on top of a universal offer available to all SEND pupils. Most children will remain in mainstream schools, receiving either targeted classroom support or additional professional input such as speech and language therapy. Only those with the most complex needs will be directed towards specialist placements, with EHCPs retained primarily for this group.

The reforms will cost £4bn overall, including £1.6bn allocated to help mainstream schools strengthen provision. Yet the Department for Education has acknowledged that EHCP numbers may not fall below their current level and that rising demand could continue to place strain on local authority budgets.

Alongside changes to SEND provision, the white paper proposes tighter oversight of private specialist schools, including the possibility of capping fees and restricting expansion where deemed unnecessary. Ministers have criticised what they describe as excessive charges and have raised concerns about private equity involvement in the sector.

The paper also reiterates the government’s ambition for all schools to join or form multi-academy trusts, while warning against excessive executive pay and calling for clearer expectations between families and schools.

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A three-month public consultation on the proposals is now under way. While ministers argue the overhaul will ease pressure on families and improve early intervention, critics warn that without deeper structural reform to assessment thresholds and accountability, rising demand may continue to drive costs higher before any savings materialise.


Jamie Young

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

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I analyze securities based on value investing, an owner’s mindset, and a long-term horizon. I don’t write sell articles, as those are considered short theses, and I never recommend shorting.I was initially interested in a career in politics, but after reaching a dead-end in 2019 and seeing the financial drain this posed, I choose a path that would make my money work for me and protect me from more setbacks. This brought me to study value investing, in order to grow wealth with risk management in mind.From 2020 to 2022, I worked in a sales role at a law firm. As the top-grossing salesman, I eventually managed a team and contributed to our sales strategy. I spent much of my free time reading books and annual reports, steadily building my vault of knowledge about public companies. This period has since been useful in helping me assess a company’s prospects by its sales strategy. I particularly get excited when the product seems to sell itself.From 2022 to 2023, I worked as an investment advisory rep with Fidelity, primarily with 401K planning. My personal study before that allowed me to pass my Series exams two weeks ahead of schedule, and I once again found myself excelling at the job. I learned a few useful things from this more formal setting, but my main frustration was that I was still a value investor, and Fidelity’s 401K planning was based on modern portfolio theory. Lacking a way to change positions internally, I chose to walk away after a year.I gave writing for Seeking Alpha a try in November of 2023, and I’ve been here since. As I spent those years saving aggressively and building up my base of capital, I also actively invest now. My articles are how I share the opportunities that I seek for myself, and my readers are effectively walking this road alongside me.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DFDV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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