Isos Partnership: Towards an effective and financially sustainable approach to SEND

This report from ISOS Partnership was commissioned jointly by the County Councils Network (CCN) and Local Government Association.

It contains a comprehensive analysis showing how the special educational needs and disabilities (SEND) system is broken and is not working for all: not just local authorities, but schools, parents and most importantly children and young people with SEND themselves.  

Having demonstrated the problems, the second half of the report sets out the case for reform of SEND services in England, and what type of change is required. It diagnoses why the system is becoming not only financially unsustainable but increasingly ineffective for young people and families.

The report concludes that, despite unprecedented investment and a decade of reforms, outcomes for children and young people with SEND have not improved, parental dissatisfaction has risen, and the system now presents an existential financial risk to many councils.  

Key findings from the report’s analysis include:

• The number of people on Education, Health and Care Plans has risen 140% since 2014/15.  
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• Specialist placements have surged: 60% increase in state-funded special schools and 132% in independent/non‑maintained special schools.
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• Costs are significantly higher for independent placements High needs spending (£10.8bn in 2023/24) exceeds funding, creating a £3.16bn cumulative deficit, projected to reach £5bn by 2025/26.
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• Half of councils would be insolvent if the statutory override ended.  Outcomes for children and young people with SEND have not improved across Key Stage 2, Key Stage 4 or post‑16 destinations.
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• Root causes of the system’s demand increases include: rising need and demand; unclear statutory thresholds; misaligned responsibilities between LAs, schools and health; and an adversarial tribunal system.
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• The previous government’s improvement plan is viewed as insufficient by 80% of system leaders.

Recommendations for government to bring the system to sustainability include:

• Establish a new national ambition centred on inclusion and preparation for adulthood.
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• Create a National Framework defining needs, expectations and ordinarily available provision.
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• Strengthen inclusive practice in mainstream schools, including multi‑disciplinary support. Realign powers and accountability through statutory Local Inclusion Partnerships.
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• Define a strategic, regulated role for the independent sector, including profit restrictions.
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• Develop a national SEND and inclusion workforce strategy, led by a new National Institute.