Millions of pounds of school funding transferred to support SEND deficits

Schools Week have reported that councils have been given ministerial approval to seize more than £82 million funding from their mainstream schools to prop up widening SEND deficits.

Their article believes that the approval is thought to be for the highest amount ever and reports that many school leaders are refusing to back the decision. Councils must get approval from the Department for Education if they want to transfer more than 0.5 per cent from their core schools budget to their high-needs block, or up to 0.5 per cent without schools forum approval.

This is exactly the position of Devon Local Authority, where schools were consulted at the end of last year on the transfer of 0.5% between council funding blocks for 2025-26. 164 schools (82%) disagreed with the transfer from the schools block to the high needs block, however the DfE approved Devon’s request to override the decision made by Devon Education Forum in January .

Freedom of information data shows 23 councils requested to “top-slice” funding for 2024-25. Just two were refused, despite nearly half being opposed by school forums.

The government estimates that councils will have high needs deficits totalling nearly £5 billion by 2026. Currently an accounting override allows the deficits to sit off balance sheets, but this is due to end next year, with more than half of councils warning of insolvency.

Fifteen of the 23 councils, including Devon that requested fund transfers are part of the government’s safety valve scheme, where those with the largest deficits get bailouts in exchange for severe cost-cutting.

The government is working on major SEND reforms, but as yet no decisions have been taken on whether deficits will be written off.