How to navigate SEND funding for 2025-26

The Department for Education is accountable for the SEN system. In 2024–25, it provides dedicated high-needs funding of £10.7 billion to local authorities. They have a statutory responsibility to ensure children receive educational support. 

Government reforms and new specialist places
On 4 December 2024, the government announced new specialist places to be created in mainstream schools. Major reforms to the SEND system are initiated with a £740 million capital investment to create more specialist places in mainstream schools. It will start to pave the way for the government's plans for reform to help more pupils with SEND to have their needs met in mainstream schools. Allocations will be confirmed in Spring 2025, alongside guidance for councils on improving local mainstream provision.

Budget uplift and treasury forecast

The autumn budget outlined Phase 1 of the Spending Review provides a £1 billion uplift for SEND and alternative provision funding; this equates to 6% real growth. Furthermore, the Treasury predicts that local authorities (LAs) will use this funding to reduce in-year deficits. 

Additional funding sources

The UK government has acknowledged that local authorities are facing significant financial strain in providing SEND support, with funding spread thin across multiple services. 

Supplementary government funding for SEND

The High Needs Block within the Dedicated Schools Grant (DSG) is allocated to support SEND. The government sometimes provides capital funding to improve or expand school SEND facilities. This could be creating new specialist places or upgrading existing infrastructure.

Local authority investment in SEND

Local councils often allocate additional funds for SEND services. Worcestershire County Council announced a £30 million investment in February 2025 to enhance SEND education provision.

Community engagement

Engaging with the local community and seeking support from parents, businesses, and organisations can help schools raise extra funds and resources. Securing more funding for SEND initiatives can include:

• fundraising 

• events

• donations

• sponsorships

• partnerships with local businesses

• collaborating with charities

Schools often use fundraising to buy equipment, resources, or other items that support SEND pupils, ensuring they have the tools needed to succeed in their learning environment.

Funding challenges and the need for good budget management.

The increasing demand for SEND services, combined with inadequate funding, often leads to difficult decisions regarding resource allocation. 

Maximising the SEND Budget
Mainstream schools receive a notional SEN budget (up to £6,000 per pupil) within their funding allocation to support SEND. Good SEND budget management ensures learners get the support they need. Schools and local authorities can adopt several strategies to achieve this.

Efficient resource allocation

Prioritise spending on essential resources and services that impact pupil learning and well-being. This includes 

• investing in quality teaching staff

• educational materials/learning tools 

• and specialist SEND support such as teaching assistants and tutors

Resources reallocation 

Schools and local authorities should review resource allocation to ensure funding is well spent. Reallocation could involve:

●       prioritising support for pupils with the most significant needs

●       identifying opportunities for collaboration across schools and local authorities to share resources

●       investing in staff training to upskill educators in SEND best practices

Resource sharing and collaborative procurement 

Pooling resources and sharing best practices across schools can reduce costs and enhance service delivery. Collaborative models, such as joint procurement of specialist equipment, recruitment, or shared training initiatives, have proven effective.

Investment in Infrastructure

The government has allocated extra funds for school rebuilding and maintenance projects. Schools can apply for grants and funding opportunities to improve their facilities 

Training and development                                                                                                    
Investing in staff training and strategically deploying SEND staff can enhance financial efficiency and pupil outcomes. Ensuring that educators receive high-quality professional development in SEND best practices enables them to meet a wider range of needs within mainstream settings. This reduces reliance on costly external interventions.

The SEND Reform Bill and funding allocation

The Bill, which is part of ongoing efforts to improve SEND provision in the UK, includes funding to help local authorities adapt their services. This should allow for more effective resource allocation, enabling local councils to better meet the rising demand for SEND services.

Uses of the new funding

This new funding can be used to adapt classrooms to be more accessible for disabled learners and to create specialist facilities within mainstream schools that can deliver more intensive support adapted to pupils' needs.

Financial planning and cost management                                                                                     

Increases in the national minimum wage and employer National Insurance contributions impact school budgets, so schools need to plan. Using data analytics can help identify funding gaps and optimise resource allocation. By reviewing expenditures and outcomes, decision-makers can adjust spending to focus on interventions that deliver measurable benefits. Schools can also manage costs by negotiating better deals with suppliers, reducing energy consumption, and optimising the use of existing facilities. 

Pupil Premium utilisation

Schools can use the Pupil Premium to support disadvantaged pupils with SEND, ensuring that funding is directed toward tailored interventions. This could include:

• one-on-one teaching assistants

• therapeutic services

• access to specialist equipment

To maximise impact, school leaders, head teachers, and governing bodies must make informed decisions on how to allocate the pupil premium. The most effective spending is based on an understanding of the challenges eligible pupils face. Tracking and identifying these pupils ensures that funding is used strategically to improve their outcomes. Embedding pupil premium funding within the broader school improvement plan enhances its effectiveness.

Navigating funding for the long-term

Navigating SEND funding needs continuous attention and smart resource management. Schools must balance both short-term needs and long-term strategies to ensure SEND pupils receive the support they deserve, all while staying within budget. With the right approach, schools can turn these challenges into opportunities for growth and improvement. 

Teaching Personnel can help schools maximise the benefits of their pupil funding. While we do not decide on spending, our team can talk to school leadership to understand the needs of SEND learners and provide guidance on solutions.