SEND Funding Support: What the 2026 Government Announcement Means for Councils

On 9 February 2026, the UK Government made a major move to address SEND funding, pledging to cover 90% of local authority deficits accrued up to the end of the 2025-26 financial year. With the Local Government Association (LGA) warning that eight in ten councils faced insolvency due to rising SEND costs, this £5 billion support provides councils with crucial backing to manage these pressures.

What This Means for Councils

• Debt Relief: 90% of DSG High Needs deficits will be covered for 2025-26.
• High Needs Stability Grant: Eligible councils will receive a first-phase grant in autumn 2026.
• Conditional Funding: Councils must have a Department for Education (DfE)-approved SEND reform plan.
• Broader Support: The restrictive “safety valve” programme ends; all councils receive assistance.
• Looking Ahead: Future deficits will receive a proportionate approach, but support will not be unlimited.

Other Key Changes in the Finance Settlement

• Multi-year funding for long-term planning.
• £440m boost to the Recovery Grant, totalling £2.6bn by 2028-29.
• Adjusted business rates formula to better support social care authorities.
• Flexibility on council tax increases for some authorities and fire services.

This package provides immediate support while signalling a shift toward sustainable SEND funding. Councils now have breathing space to plan, reform, and focus on delivering essential services  a critical step forward for children with SEND across the country.

Reactions and Analysis

👍 Seen as helpful but not sufficient

• Leaders of local authorities have welcomed the intervention because it removes the immediate threat of insolvency and recognises the scale of the problem.
• The support reduces financial pressure and gives councils breathing space while broader reforms are developed.

🤔 Experts say it’s only a first step

• Analysts warn that simply covering past deficits does not fix the underlying drivers of the crisis soaring costs and rising demand  and councils could still face fresh deficits in coming years.
• Without system-wide reform, including changes to how funding is allocated and delivered, the SEND system will remain under pressure.

📣 Voices calling for deeper action

• Previous inquiries and reports have criticised government responses for lacking urgency and detailed plans to improve SEND outcomes for children and families.
• Campaigners and councils continue to urge comprehensive reform not just financial support  to ensure the system is sustainable and equitable in the long term.

In Short

While the funding is welcome, it remains to be seen whether it will fully address the underlying challenges in SEND.

It would be interesting to hear from my connections who work in local authorities: do you think this announcement will have a positive effect throughout 2026?