A system at breaking point

The special educational needs and disabilities (SEND) system in England is facing a crisis. With Education, Health and Care Plan (EHCP) demand surging by 140% since 2015, councils are being pushed to the financial brink.

According to recent Guardian analysis, more than £5bn in SEND deficits have accumulated across local authorities, with some councils warning they could face insolvency when the statutory funding override ends in 2026.

Ministers are now planning major SEND reforms, with a white paper expected to outline sweeping changes to the funding model. But will these reforms truly address the root causes of SEND overspending and inefficiencies, or will councils be left to manage an unsustainable system on their own?

A SEND funding model that doesn’t work

The core problem with the current SEND system is that it is reactive, inconsistent, and financially unsustainable. Councils are legally required to provide for every child assessed as needing SEND support, but funding has failed to keep pace with demand. This has led to:

• 311% variation in funding for similar needs across different councils.
• 50% of EHCPs failing to meet statutory 20-week deadlines, leading to delays in support.
• High-cost independent placements charging up to three times more than state provision.
• Escalating legal disputes, with SEND complaints quadrupling in four years.
• Council SEND budgets in freefall, with growing reliance on costly short-term fixes.

Something has to change! Without fundamental reform, the financial burden will continue to grow, and thousands of children will continue to face inconsistent and delayed access to the support they need.

Funding reform is only part of the answer

The Government is expected to announce significant legislative and financial changes to the SEND system, including efforts to limit EHCP legal challenges and reduce reliance on costly private sector placements. However, funding reform alone will not fix the crisis. Councils need a scalable, transparent, and data-driven approach to ensure equitable resource distribution, budget control, and improved outcomes for children.

Imosphere’s Formulate for SEND: A proven solution

To truly fix SEND funding, councils need more than just extra funding – they need a way to manage funding more effectively. This is where Formulate for SEND comes in.

Formulate from Imosphere is already helping councils transform the way they allocate SEND funding by ensuring fair, transparent, and needs-based decision-making. Here’s how:

Greater financial sustainability

• Enables over £3m in preventative spend for every 1,000 children annually.
• Allows councils to stay within budget while redirecting funds for early intervention.
• Ensures equitable, data-driven funding decisions.

Increased efficiency and faster EHCP processing

• Reduces administrative burden by 70%, allowing SEND teams to focus on strategic decision-making.
• Increases councils’ likelihood of meeting the 20-week EHCP deadline by 25%.
• The next release of Formulate will leverage new AI-driven consistency checks, enabling councils to standardise assessments, resulting in fairer funding decisions.

Reducing legal challenges and building trust

• Legal challenges from parents have quadrupled, largely due to inconsistent and opaque funding decisions.

Formulate’s clear, structured, and explainable funding allocations reduce disputes and help build trust with families.

With new AI-driven consistency checks launching later this month, Formulate will also ensure standardised EHCP assessments across councils, making funding decisions fairer and more predictable.

Real-world impact: How councils are already benefiting

One example of Formulate’s impact comes from the London Borough of Wandsworth, where Formulate has transformed SEND resource allocation. Emma Maffre, SEND Service Manager, comments:

“The EBT has streamlined our processes, significantly reducing the time spent on funding negotiations and enabling more informed, data-driven decision-making. It has improved satisfaction among schools and enhanced confidence in our funding practices.”

This is the type of tangible, data-backed impact that every council needs to ensure the long-term sustainability of SEND services.

The time for action is now

With the statutory override expiring in 2026, councils cannot afford to wait for government reform alone. Without a smarter approach to funding management, many local authorities will be forced into financial crisis.

As councils prepare for the upcoming SEND white paper, Formulate for SEND offers a real, scalable solution – one that is already helping local authorities make fairer, faster, and more sustainable funding decisions.

The choice is clear: continue down an unsustainable path, or embrace a future where SEND funding is transparent, equitable, and effective for every child.

Speak to our experts today and find out how Formulate for SEND can support your council.

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