LGA warns of council insolvency over SEND deficits ahead of statutory override end
The Local Government Association (LGA) has reported that most English councils face a high risk of insolvency as a result of escalating deficits associated with supporting children and young people with special educational needs and disabilities (SEND) and called on the government to take urgent financial and structural action. It said a survey of councils found that eight in ten expect to be unable to set a balanced budget in 2028 –29 when the current statutory override, which allows high needs Dedicated Schools Grant deficits to be kept off councils’ main balance sheets, is due to end. The LGA identified rising demand as the primary driver of cost pressures, noting that there were almost 640,000 Education, Health and Care Plans in place by January 2025, with numbers increasing every year since 2014.