Government Intervention with Local Authorities with Severe SEND High Needs Funding Deficits

The Government has said that funding will continue to grow in 2023-24 and 2024-25, but on a smaller scale than the increases over the last 3 years. Local authorities (LAs) will be asked to use an assumption of 5% increase on their total high needs block allocation from 2022-23 and 2023-24, and 3% year on year beyond 2024.

For those local authorities that already have high deficits, the Government has already started its intervention work through the Deficits Delivering Better Value on SEND (DBV) Programme, and its 'Safety Valve Agreements' with the latter aimed at those LAs in the most extreme deficit positions. Both interventions are predicated on those LAs with the highest financial deficits at 2020-21.

There have been reports in the sector press of 20 more LAs entering in to Safety Valve Agreements recently, with the Government imposing a host of strict conditions as part of these agreements, including around mainstream inclusion as part of the deficit rescue package. One such condition includes repatriation of children back into mainstream provision from special independent provision at key points of transition. The precise details of what the Government has agreed with each of the LAs via a Safety Valve Agreement can be viewed in the above link and it is worth schools and academy trusts checking these details to see if it is relevant to the LA areas where their schools operate.

The above LAs with deficits in their Dedicated Schools Grant (DSG), have been allowed to ring-fence these deficits in their annual accounts, to an agreed date as detailed in their agreements. The need to tackle those deficits through the operation of a more sustainable high needs system is the end goal. This Government financial support is reported to now total nearly £1 billion. The latest 'Safety Valve' deals have a value of £989 million to help to plug high-needs funding deficits since 2020-21.

The DfE has stated that it expects LAs with sustainable high needs systems to be in a far better position to modernise in line with the SEND review and the improvement plan

The DfE has set up a national system steering group, made up from sector leaders and including representation from parent carers.

For more information on the current funding arrangements, see the High Needs Funding Operational Guidance.

For advice on all aspects of SEND, please contact Yvonne Spencer in our Education team on 020 7665 0870 or Rosie Browne in our Education team on 020 7665 0829. Alternatively, please complete the form below.