Question to the Department for Education:

To ask the Secretary of State for Education, whether she plans to review the level of funding provided for children with Education, Health and Care Plans in mainstream education settings.

The Autumn Statement announced significant additional investment in core schools’ funding. The core schools budget, which provides funding for mainstream schools and high needs, will increase by £2 billion in each of the 2023/24 and 2024/25 academic years, over and above totals announced at the 2021 Spending Review.

Schools' funding is £4 billion higher this year than last, and it will rise by another £3.5 billion, on top of that, next year. Taken together, this means an increase of over 15% in just two years.

Local authorities are required by regulations to provide mainstream schools with sufficient funds, through their local schools funding formula, to enable them to meet the additional cost of pupils with special educational needs (SEN), including those with an education, health and care (EHC) plan, up to £6,000. Local authorities identify a notional special educational needs and disability (SEND) budget for schools as a guide to what they may need to spend in supporting their pupils with SEN. The department has issued guidance to local authorities on their calculation of the notional SEN budget using their local funding formula.

When the costs of additional support required for a pupil with SEN exceed £6,000, the local authority should allocate additional top-up funding to cover the excess costs. This funding comes from the local authority’s high needs budget. This may follow a statutory assessment producing an EHC plan, though local authorities have the discretion to provide high needs top-up funding for pupils without an EHC plan.

As the department moves towards a different system for funding mainstream schools, in which the department, rather than local authorities, will determine allocations for individual schools through a single, national formula, we plan to move to a standardised calculation of schools’ indicative budgets for their pupils with SEN. Following the recent consultation on implementing this new system, we are considering the detail on how to achieve this and intend to consult further in future.

In addition, the department has committed to publishing a SEND and alternative provision improvement plan early this year, following the Green Paper publication in March 2022, which set out proposals to improve outcomes for children and young people with SEND, within a fairer and financially sustainable system.