Government says it will not enter any more safety valve agreements with councils in financial difficulty over SEND budget

The Department for Education has confirmed that the Government will not enter any more safety valve agreements with councils in financial difficulty over their SEND budget, “pending wider reform of the whole system to prioritise early intervention”.

Safety valve agreements (SVAs) are written agreements by individual local authorities with the DfE, under which the DfE will “bail out” local authorities that have over-spent on their special educational needs budgets.

Over time, more than 30 local authorities have been supported to manage their high needs budgets through the safety valve programme.

The Government revealed that while it will continue to work with local authorities with existing agreements to deliver their plans, it will not be entering any new ones.

Other reforms to the SEND system announced by the Department include:

• A £740 million capital investment to create more specialist places in mainstream schools;
• The creation of a “Neurodivergence Task and Finish Group” - a group of experts that will work alongside the Department to drive inclusive education.

The Government noted that last year, only 20% of pupils with SEND met the expected standard in reading, writing and maths at Key Stage 2 level.

Secretary of State for Education, Bridget Phillipson said: “The current picture is stark. For too long, too many children with additional needs haven’t been getting support early enough, with dire consequences when issues escalate. 

“But my commitment to reform – making tangible change to the SEND system to improve experiences for children and families – could not be clearer, and building a system where more children with SEND can attend mainstream schools is central to our plans.

“We are determined to break down barriers to opportunity for all children and will work closely with local authorities, schools and families to ensure inclusion is at the heart of learning and that all pupils are getting the support they need to achieve and thrive.”

Responding to the announcement, Cllr Arooj Shah, Chair of the Local Government Association’s Children and Young People Board, said: “To tackle the challenges within the SEND system, any reform must focus on boosting mainstream inclusion, and we are pleased government has set out steps towards this.

“However the rising number of Education, Health and Care Plans means councils are under ever increasing financial pressure, and so it is vital today’s announcement is followed up with urgent action to write off councils’ high needs deficits.

“Otherwise many councils will face a financial cliff-edge, and be faced with having to cut other services to balance budgets through no fault of their own, or their residents.”

Cllr Kate Foale, Special Educational Needs and Disabilities Spokesperson for the County Councils Network, said: “The County Councils Network has argued the system does not work for young people, local authorities and schools alike, and only by enabling mainstream schools to better support SEND pupils can we reform a system in desperate need of change. We are pleased the government recognises this and today’s announcement is a step in the right direction. However, it should be seen as a downpayment ahead of root and branch reform.

“Whilst today’s extra funding is important, councils across England have accrued unmanageable deficits of £4bn within their SEND services, which is being kept off their books via the statutory override. Successfully reforming the system will require a national solution on how the Treasury intends to manage these deficits when the override comes to an end as planned in March 2026, and we have urged the government for immediate clarity.

“Whilst the handful of councils who were negotiating with government on ‘Safety Valve’ agreements will be disappointed the programme is ending, the Department for Education is clear that the reform to the system is coming. It is vital that reform is implemented within 12 months of the Spending Review, with councils playing a key role.”

Lottie Winson