Final Local Government Settlement

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SEND Reforms Overlook School Transport

New plans designed to help local authorities manage the rising cost of supporting children with special educational needs and disabilities (SEND) leave significant questions unanswered, particularly around the growing cost of home-to-school transport.

In a new report, the Public Accounts Committee (PAC) warns that while the Government has announced measures to address spiralling SEND deficits, the proposals fail to take account of mounting transport pressures faced by councils.

The Government has proposed writing off 90% of the historic deficit caused by SEND overspending which is expected to reach more than £5 billion by March 2026, with SEND costs set to be funded from central departmental budgets from 2028-29.

However, the PAC says uncertainty remains about how councils will manage any deficits arising before then. Crucially, the new funding arrangements do not address the rising cost of home-to-school transport, which is placing increasing pressure on local authority budgets.

Spending on home-to-school transport has risen sharply, increasing by 106% in real terms between 2015-16 and 2023-24 and now costing councils around £2.5 billion annually.

The committee also highlights the challenges families face navigating the system, particularly when transport support can drop away after the age of 16, when provision becomes discretionary for local authorities.

The report notes that improved local transport options could help reduce these costs, particularly if travel assistance moved away from expensive door-to-door services towards wider public transport solutions.

However, the continued decline of local bus services, especially in rural areas, presents a major challenge. Limited transport options often leave councils with little alternative but to fund costly taxis or specialist transport services for pupils who cannot otherwise reach school safely.

The PAC suggests that improvements to local transport infrastructure including expanded bus networks, bus franchising, and safer walking and cycling routes could reduce reliance on specialist transport while benefiting wider communities.

The committee also calls for better data on who receives home-to-school transport and whether support is reaching those most in need, noting that the Department for Education currently lacks clear oversight.

It further urges the Ministry of Housing, Communities and Local Government to clarify how it will monitor whether its new funding formula (intended to reflect differences between rural and urban transport needs) is working effectively in practice.

Rachel Gilmour MP, a member of the PAC, said the Government had begun to recognise the scale of the SEND funding crisis but warned that major questions remain around home-to-school transport and the support available to children and families.


Read the committee report here