Dudley Council is facing a critical financial dilemma over its special educational needs and disability (SEND) provision, with a multi-million pound deficit still unresolved despite a major national funding announcement.
The Funding Announcement and the Unanswered Question
In the budget on November 26, Chancellor Rachel Reeves declared that from the end of the 2028/29 financial year, the government would take over the cost of SEND education. This move, currently a burden on local authorities, could save Dudley Council an estimated £30 million per year.
However, a significant problem remains. The council pays for SEND from its Dedicated Schools Grant (DSG), which is forecast to be £56 million in deficit by the close of the current financial year. A temporary 'statutory override' currently shields the council's general accounts from this debt, but this protection is set to expire after 2028.
A 'Sticking Plaster' and a Looming Crisis
Councillor Wayne Little, Dudley's cabinet member for children's services and education, welcomed the future funding shift but highlighted the uncertainty. "Until the government publishes its Local Government Finance Settlement in December and SEND reforms white paper in January we will not know how it intends to address historic SEND deficits," he stated.
The scale of the challenge is growing rapidly. In Dudley, SEND caseloads surged by 88 percent between 2019 and 2024, significantly above the national increase of 62 percent for the same period. At a recent Audit Committee meeting, Councillor Jackie Cowell warned the situation was "like a bomb going off."
Lisa Kitto, Dudley's interim director of resources, described the statutory override as "a sticking plaster" and confirmed the council is lobbying for a permanent solution alongside other authorities.
Council Position and National Calls for Action
Despite the looming deficit, Cllr Little pointed to improved financial management, with the council on track to deliver savings of £53.6 million and boost general reserves to £36.3 million by the end of 2025/26. He also noted recent investments, including the new Pens Meadow school for children with significant SEND needs.
The issue extends far beyond Dudley. The Local Government Association has urged ministers to use the upcoming finance settlement to write off these accumulated deficits. Councillor Amanda Hopgood, chair of the LGA's Children, Young People and Families Committee, called for the government to "write off these deficits – both the current accumulated deficits and any future deficits expected up to and including 2028/29."
For now, Dudley Council and many others across England remain in a state of limbo, awaiting crucial details that will determine their long-term financial health and their ability to support vulnerable children and young people.
