Funding for the education of children with additional needs in Northumberland will fall short by more than £6 million next year.
Officials at Northumberland County Council blamed the unprecedented growth in the number of children with additional needs for the budget shortfall. The number of children with education and healthcare plans (EHCPs) has risen by more than 100% since 2017.
It means the council's high needs block will be in an overspend of almost £8.4 million by the end of the 2024/25 funding period. While some of this will be offset by reserves and transfers from other parts of the schools budget, the council's overall dedicated schools grant (DSG) will have £5.46 million by that point.
The DSG reserve had already decreased from a surplus of £4.5 million at the end of 2022/23 to £1.16 million in 2023/24. At the latest meeting of the council's schools forum, the stark figures were laid bare to education leaders from across the county by council officers.
Accountant Callum Street said: "We have seen a 30% growth in EHCPs ear on ear which outstrips any budget we have set aside. We do continue to see growth in EHCPs as a national trend which is the main driver for overspends on the high needs block.
"We have known about the growth - we first saw it coming out of Covid, but it has been exponentially worse since that happened.
"The LA7 have recently met and we have forecast all the positions across the seven local authorities. Northumberland's position is remarkably similar to Newcastle's going forward in particular.
"As for the group as a whole, there's a paper going forward to Government outlining the position and outlining how we are all forecasting the same thing. There is clearly a fundamental funding gap."
Mr Street explained that a significant part of the budget issues came from a £2.137 million overspend on SEND top-up payments. A special educational needs top-up payment is additional funding from councils to schools to support the extra costs of educating students with special educational needs, ensuring they receive the necessary resources their learning.
Director of education David Street continued: "Concerns about the overspend may seem a bit grim. I do want to highlight that there are areas of SEND education in Northumberland that are massive success stories.
"The education system is meeting the needs of twice as many learners as it used to. The fact that schools and alternative providers have been able to deliver for this number of learners with a higher degree of need is a massive success.
"We have some challenges moving forward, but actually other local authorities have been in this situation multiple years before we are. However, there is a gap in funding growth and demand of 49%.
"I don't remember us being flush before, it's not like there was money for every need four years ago - we have always had to have a tight budget. We have to meet need, but we also have to find out how we square the circle."
Other local authorities, including North Tyneside Council, have entered into a so-called Safety Valve agreement with the previous Government. The Safety Valve scheme is a DfE funding agreement which forces cash-strapped councils to slash spending on special education provision.
The education union NASUWT say that to reduce demand for EHCPs, Safety Valve programmes must ensure that children and young people with SEND should have their needs identified early and that support is provided promptly so that needs do not escalate. It warns schools need to be resourced and teachers supported appropriately so that needs can be identified and met.
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