The recent news that many multi-academy trusts are having to use their reserves to cover funding shortfalls came as no surprise to those overseeing the finances of MATs.
The causes of this financial predicament, as detailed in the Kreston Academies Benchmark Report 2024, are varied, but one key factor is the huge demand for support for special educational needs and disabilities (SEND) and those with education, health and care plans (EHCPs) - without any significant increase in funding.
As Kevin Connor, head of academies at accountants Bishop Fleming, noted: “The current system of SEND funding is clearly putting further strain on an already financially challenged sector. Addressing the gap between the cost of provision and available funding must be a top priority.”
It’s not just MATs suffering either. With local authorities also struggling to meet escalating deficits in their high-needs budgets, many services are now at risk of being cut back; in Birmingham, for example.
The SEND funding problem
Schools receive a notional amount through their core funding that is meant to cover the first £6,000 of support required for pupils with high needs.
They then get additional funding from their local authority for provision over this threshold. But this funding has hardly increased in the past 10 years, while costs have soared. The cost of employing a learning support assistant to work with SEND pupils is now about £24,000, up from £16,000 10 years ago.
And given the significant rise in the number of EHCPs in mainstream settings, it is hard to expect schools to cover the first £6,000 when they don’t even get this level of funding per pupil to cover their basic educational entitlement.
Local systems have not been resilient enough to deal with the rise in demand. There has been too much reliance on expensive independent special school placements, often located far from a child’s home, which puts further strain on transport budgets. This situation has been further exacerbated by inflationary pressures and Covid.
Supporting children with additional needs without adequate funding and access to specialist support is a growing challenge for local authorities and schools. The uncertain financial outlook adds a further layer of complexity to the future of SEND provision.
A fresh approach
Clearly the funding model needs to be urgently reviewed to support a more inclusive mainstream education system that can meet children’s needs earlier, not at the point of crisis, as Peter Gray, policy consultant and coordinator of the SEN Policy Research Forum, explains.
“A model with greater emphasis on funding schools rather than individual pupils, at least for those with more modest needs, would provide budget stability, allowing schools to make longer-term investment in the workforce rather than relying on uncertain top-ups at the point of admission,” he says.
“This is based on the idea that there are more common needs that could be better met in mainstream settings with a few adjustments and increased access to external support where required.
“Additional funding for more specialist support can then be reserved for pupils with the most complex needs, which are significantly beyond what a mainstream school could ordinarily provide.”
Strengthening the level of funding allocated at school level, with associated change in accountability systems, would also free up precious time for special educational needs and disabilities coordinators (Sendcos) and SEND support services. Their time could be better spent supporting pupils, rather than juggling paperwork or fighting tribunal cases from parents who simply want to get the help their child needs.
This would not mean cutting SEND provision but raising standards for everyone and moving away from a deficit model to one where all pupils are fully included. It would, in turn, restore parents’ confidence in the system and gradually reduce demand for EHCPs, which are currently seen as the only way to access additional support.
Some extra investment in mainstream schools will be required initially, but this will save billions in the long term and deliver a sustainable, fair solution that improves outcomes and gives every pupil the fundamental right to the education they deserve.
Benedicte Yue is chief financial officer at River Learning Trust
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