The Government is ‘finally recognising the heavy pressure placed on local budgets to support children’ after agreeing to wipe out 90 per cent of the debt councils has accrued in Special Educational Needs and Disabilities (SEND) spending.

Surrey has 46,000 children with Additional Needs and Disabilities (AND) with 16,870  children and young people with a statutory Education Health and Care (EHC) plan.

This is more than double the number in 2018 and puts it at the third highest in the country.

Councils must, by law, have to identify and support children with special educational needs but the surge in numbers has seen spending far outstrip what they receive from Government.

Surrey County Council has spent millions since 2018 as part of its recovery plan for the service – which it has said is yielding results, but has pressed for changes to the wider system, additional funding and reform.

MP Greg Stafford also told the Commons that the High Needs Block deficit in Surrey was forecast to run to £165 million by 2027.

It leaves councils having to find huge sums every year – with historically poor support from the Government.

The news that £5 billion will be spent to eliminate almost all historic debt in Englands, they hope, signals a major change in direction.

Cllr Helyn Clack, Surrey County Council’s deputy cabinet member for children, families and lifelong learning, said: “Surrey County Council welcomes the announcement on SEND deficits.

“It shows that central government finally recognises the heavy pressure placed on local budgets to support children with special educational needs, costs that should have been fully funded through the Government’s Dedicated Schools Grant.

“We are mindful that this SEND deficit funding covers overspends we have already incurred. 

“We now await more detail on the expected ongoing costs of the SEND system and the long‑promised reforms needed to make it sustainable in the future.

“In the meantime, we are reviewing the details of the announcement to understand what it means for the council.”

The announcement follows Local Government Association (LGA) warnings that as many as  eight in 10 English councils would be facing bankruptcy if forced pay back their SEND deficits in full.

Cllr Amanda Hopgood, chair of the Local Government Association’s children, young people and families committee, said:  “Councils want every child and young person to get the support they need. But under the current failing system, the rise in need has left many councils buckling under the strain.    

“We were pleased that government announced it will tackle 90 per cent of councils’ historic high needs deficits, following our call to address the deficits, which removes the immediate threat of insolvency for many councils. Fully writing off historic and future high needs deficits remains critical.  

“The challenges within the SEND system are not just financial. The Schools White Paper must deliver brave and bold reform where more children can get the support they need in a mainstream school, without needing a statutory plan.”