SEND News
11/06/2026 1 min readHigh needs funding deficit: why your council may be cutting SEND services
A combination of soaring EHCP demand and frozen funding has left many English councils facing huge "high needs" funding deficits. The statutory override that lets councils keep these deficits off their main accounts has been extended again — but it is not a solution.
## What is the high needs block?
The Dedicated Schools Grant (DSG) includes a "high needs" block that funds support for children with EHCPs in mainstream schools, special schools and specialist placements. Demand has risen far faster than funding.
## Why it matters
- Many councils are running multi-million-pound deficits on this block.
- Government has extended the statutory override so deficits don't trigger insolvency, but this only delays the problem.
- In some areas, this is being used to justify cuts to top-up funding, traded services and SEN Support.
## What parents need to know
- A council's financial pressure is **not** a lawful reason to refuse an EHC needs assessment or a placement.
- Provision in Section F of an EHCP must be specified and quantified — "subject to budget" wording is not lawful.
- If you think the council is making a decision on cost grounds, get advice from IPSEA or SOS!SEN.
**Source:** DfE / Local Government Association briefings on DSG and the high needs statutory override.
