The government has announced plans to write off 90% of local councils’ historic deficits related to Special Educational Needs and Disabilities (SEND), in a major intervention aimed at stabilising council finances and preventing further strain on local education services.

The move comes after years of mounting pressure on councils, many of which have accumulated significant deficits as the cost of supporting children with SEND has risen faster than available funding. In some areas, these deficits have reached tens of millions of pounds, threatening wider council budgets and forcing difficult spending decisions.

Under the proposed measures, the vast majority of historic SEND-related debt will be removed from council balance sheets. The remaining 10% will be managed through revised funding arrangements and stronger oversight, with the government arguing that councils must still retain some responsibility for future financial discipline.

Ministers say the write-off is necessary to prevent councils from reaching a financial “cliff edge” once temporary accounting protections expire. Without intervention, many local authorities warned they could face effective bankruptcy, service cuts, or the need for emergency government support.

However, the announcement has prompted mixed reactions. Council leaders have broadly welcomed the move as long overdue, saying it offers breathing space and a chance to reset local SEND systems. At the same time, education unions, parent groups, and charities have cautioned that debt relief alone will not fix the underlying problems.

Demand for SEND support has continued to rise, driven by increased diagnoses, greater awareness of special educational needs, and legal obligations to provide tailored support. Critics argue that without sustained increases in funding, workforce investment, and reform of the SEND assessment process, deficits could begin to build again.

The government has said the write-off will be accompanied by reforms aimed at improving efficiency, early intervention, and outcomes for children and young people with SEND. Details of how future funding will be allocated, and what safeguards will be put in place to prevent new deficits, are expected to be set out in further guidance.

For now, the decision marks one of the most significant financial resets for local government in years—offering short-term relief to councils, while reopening the wider debate over how SEND services should be funded and delivered in the long term.