Finance
UK to overhaul special-needs education as costs spiral
Published by Global Banking & Finance Review®
Posted on February 22, 2026
3 min readLast updated: February 22, 2026
Quick Summary
Britain will unveil long-delayed England SEND reforms to curb costs and improve early support. The £4bn plan adds a £1.8bn specialist pool, writes off most council deficits, and pledges to assume full costs from 2028, drawing scrutiny over rights and accountability.
UK plans major SEND overhaul amid surging costs and rising demand
Funding Overhaul and Budget Impact
LONDON, Feb 22 (Reuters) - Britain will unveil long-delayed reforms to England's special educational needs and disabilities (SEND) system on Monday, as rising demand and sharply escalating costs push it towards a financial breaking point.
OBR Cost Warning
The Labour government is under pressure to fix a system which its budget watchdog, the Office for Budget Responsibility, has warned will leave it footing a 6 billion pound ($8.09 billion) bill by the end of the decade.
Councils' Deficits Write-Off
This month, ministers wrote off 90% of councils' historic SEND-related deficits after eight in 10 local authorities warned they risked becoming insolvent under mounting costs.
£4bn Plan and School Inclusion
The Department for Education said its 4 billion-pound package over the next three years is designed to ease those pressures by improving early intervention and making mainstream schools more inclusive.
But campaigners say reforms designed to curb high spending could result in less effective provision for students with special needs.
Minister’s Spending Pledge
Education Minister Bridget Phillipson told the BBC on Sunday the government is committed to improving outcomes for children but will take action where funds are not being well spent.
EHCP Reliance and Access
Under current rules, many families rely on a statutory Education, Health and Care Plan (EHCP) – the only guaranteed route to the support they need. Limited help for those without an EHCP has pushed more parents to seek one, driving up funding demands and fuelling bureaucracy, including tribunal battles.
£1.8bn Specialist Pool
The new plans include 1.8 billion pounds to create a national pool of specialists – such as SEND teachers and speech and language therapists – that schools can draw on regardless of whether a child has an EHCP.
Government to Assume Costs in 2028
The government has said it will assume the full cost of SEND provision from 2028.
Concerns Over EHCP Limits
Advocates warn that any new restrictions on EHCPs could see many children lose the support they need. Phillipson said the reforms were not intended to remove "effective support" from children but needs would be reviewed.
Accountability and Parents’ Rights
Madeleine Cassidy, CEO of SEND law charity IPSEA, said the policy document, known as a white paper, must clarify how public bodies will be held accountable for failures, and how parents' rights to challenge decisions will be protected.
Exchange Rate Note
($1 = 0.7417 pounds)
(Reporting by Alistair Smout and Catarina Demony; Editing by Ros Russell)
Key Takeaways
- •Labour will publish a white paper to reform England’s SEND system amid mounting fiscal pressures.
- •A £4bn, three‑year package focuses on early intervention and inclusion in mainstream schools.
- •£1.8bn will fund a national pool of SEND specialists accessible beyond EHCP holders.
- •Government will write off 90% of councils’ historic SEND deficits after insolvency warnings.
- •From 2028, central government plans to assume full SEND costs, with a potential £6bn annual bill.
Frequently Asked Questions about UK to overhaul special-needs education as costs spiral
1What is the main topic?
The UK is set to unveil reforms to England’s SEND system to rein in rapidly rising costs and improve early intervention and inclusion in mainstream schools.
2How much funding is proposed and where will it go?
The plan totals £4bn over three years, including £1.8bn to build a national pool of specialists—such as SEND teachers and speech therapists—available to schools beyond just EHCP holders.
3Will EHCPs and council finances be affected?
Campaigners fear tighter criteria could limit EHCP access. The government will write off 90% of historic council SEND deficits and aims to assume full SEND costs from 2028 to stabilise local finances.
