The money is part of the £6.7bn capital settlement for education for the next financial year that was unveiled in the Autumn Budget earlier this term.
The Department for Education (DfE) made the announcement on Wednesday (December 4) and said that the funding would help schools to deliver “more intensive support adapted to suit pupils’ needs”.
The DfE has also said that it will no longer enter into any so-called “safety valve” agreements with councils in financial deficit due to overspending on SEND. The DfE has supported more than 30 local authorities to manage their high needs budgets through the Safety Valve programme but says it “has not been effective enough across the board given the scale of the challenge”.
Allocations of the £740m are to confirmed in the spring when the DfE will also publish guidance outlining “how councils can use this investment to improve local mainstream provision”. It adds: “We will continue to work with local authorities with Safety Valve agreements to deliver their plans.”
It comes after a National Audit Office report earlier this term estimated that 43% of local authorities will have deficits “exceeding or close to their reserves” by March 2026. The NAO also predicts a cumulative SEND high needs deficit of between £4.3bn and £4.9bn by March 2026 (NAO, 2024).
Education secretary Bridget Phillipson said: “The current picture is stark. For too long, too many children with additional needs haven’t been getting support early enough, with dire consequences when issues escalate.
“Building a system where more children with SEND can attend mainstream schools is central to our plans. We are determined to break-down barriers to opportunity for all children and will work closely with local authorities, schools and families to ensure inclusion is at the heart of learning and that all pupils are getting the support they need to achieve and thrive.”
Meanwhile, the DfE has also appointed Professor Karen Guldberg as chair of a new Neurodivergence Task and Finish Group, a group of experts that will work alongside the DfE to drive inclusive education. Prof Guldberg is director of the Autism Centre for Education and Research and head of the School of Education at the University of Birmingham. She said: “We are wholeheartedly committed to co-production with those with lived experience and we will be consulting widely. Our focus will be to advise and make recommendations regarding the best ways to support and meet the educational needs of neurodivergent children and young people in mainstream settings.”
Responding to the funding announcement this week, Paul Whiteman, general secretary of the National Association of Head Teachers, said that there “simply isn’t enough capacity in either mainstream or special schools”.
He continued: “Mainstream schools in particular often lack the essential facilities needed at a time when they are they are trying to cater for increasing numbers of pupils for whom there is simply not space in special schools.
“This is a legacy of the failure by previous governments to provide anything like enough investment to meet increasing demand over the last decade.
“While this funding will be welcomed by mainstream schools, it must be just the beginning of sustained investment not only in specialist facilities, and increased special school places, but also support for children with SEND and the professionals who provide this.
“That must mean reforms backed by a huge injection of new funding over this Parliament to tackle the current postcode lottery and ensure pupils with similar needs can access equitable and sufficient provision, irrespective of where they live or whether they attend a mainstream or special school.”
Mr Whiteman also repeated his calls for local authority high needs deficits to be written off.
- NAO: Support for children and young people with SEN, 2024: www.nao.org.uk/reports/support-for-children-and-young-people-with-special-educational-needs