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A report by the Public Accounts Committee (PAC) has warned that new plans designed to help local authorities struggling to finance support for children with special educational needs and disabilities (SEND) fail to take into account “burgeoning” home-to-school transport costs.

The report, published today (6 March), warns that while home to school transport is a “vital service”, it is placing “unsustainable pressure” on local authority budgets.

In 2023–24, local authorities in England spent £2.32 billion transporting an estimated 520,000 eligible children and young people (aged 0–25 years) to school or college.

New data for 2024–25, published in December 2025, shows this had increased to £2.6 billion.

Last month, the government confirmed plans to write off 90% of the historic deficit from overspending on SEND, which will amount to a cumulative £5bn+ by March 2026, with SEND costs to be met from central departmental budgets from 2028-29.

However, the PAC noted there are still “unanswered questions” on the plan for any deficits arising between now and 2028.

It said: “Moreover, while the new funding arrangements will address SEND cost pressures for councils from 2028-29, they do not cover home-to-school transport costs.”

The report therefore called on government to clarify, “at the earliest opportunity”, the level of support it will provide to local authorities with ongoing SEND deficits.

The PAC said: “The problems with home-to-school transport are pressing. Parents often experience a cliff-edge for this support post-16, following which age any support is at local authorities’ discretion.

“The report highlights an accompanying weight of evidence that the system is hard to navigate for parents. Despite this, the Department for Education (DfE) seems apparently unconcerned about the clarity of offering for this age group, or the impact losing transport at 16 may have.”

The Committee also outlined its “long-standing concern” over the ongoing decline of bus services, particularly in rural areas.

The report suggested that better local transport options would reduce home-to-school transport costs, and that “resetting expectations” about what travel assistance looks like beyond a door-to-door service could also create savings.

Finally, the report underlined the importance of collecting clear data to oversee home-to-school transport effectively, noting that the DfE is currently “in the dark as to who receives it and whether it reaches those most in need”.

Responding to the report, Cllr Amanda Hopgood, Chair of the Local Government Association’s Children, Young People and Families Committee, said: “It is positive the Government set out plans for much-needed reform of the SEND system, which is vital if we are to ensure children and young people with SEND get the support they need to flourish at school.

“Steps to improve mainstream inclusion will go some way towards reducing the need for costly home to school transport and long journey times. 

“The recent announcement that 90 per cent of councils’ historic Dedicated Schools Grant (DSG) deficits will be written off also gives councils breathing space.

“To ensure that discussions on reform focus solely on meeting the needs of children and young people with SEND quickly and effectively, government must commit to ensuring that all DSG deficits are written off, ahead of the statutory override ending in March 2028. It should also provide additional funding for councils to meet the growing need for home to school transport for children and young people with SEND.”

Cllr Bill Revans, SEND spokesperson for the County Councils Network, said: “This Public Accounts Committee report echoes many of the findings of the County Councils Network’s (CCN) recent research on home to school transport, highlighting the spiralling costs of providing transport even as day-to-day SEND costs are to be covered by government from 2028. The CCN’s projections estimate that if nothing changes, councils could be spending £3.4bn on SEND school transport by 2030, £1.4bn more than we estimate they spent last year.

“Fortunately, the government’s SEND reforms have real potential to contain these costs, if implemented in full as outlined last month. A greater emphasis on inclusion in mainstream schools should enable more SEND pupils to be taught at their local school, and changes to the tribunal system could ensure that transport costs are adequately assessed before rulings are made. It is vital that the government implements these changes as quickly as possible so they can begin to make a difference.”

He added: “Even if these changes do make a difference, home to school transport is a bigger financial pressure for county and rural unitary councils as pupils are transported over longer distances. Many of these councils will lose several millions over the next three years because of the changes in the Fair Funding Review – and at a time when transport costs are rising. In total, county areas face an £11bn funding black hole, with school transport costs a significant factor. We urge the government to look again at what support it can give to county authorities who face the largest transport bills.”

The Department for Education has been approached for comment.

Lottie Winson

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