Court orders joining of judicial review claims challenging “safety valve” deals by two authorities, case to be heard early next year

Three linked claims challenging so-called 'safety valve' agreements will now proceed to a final judicial review hearing early next year.

The claims, brought on behalf of disabled children with Education, Health and Care Plans (EHCPs), concern safety valve agreements entered by Bristol City Council and Devon County Council.

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

In exchange for financial assistance, local authorities are asked to agree to a plan which will eventually return them to a point where their spending is within budget.

In March this year, Bristol announced it will receive £53.79m over a period of seven years to address its historic dedicated schools grant deficit.

The Bristol claim challenges the failure of Bristol City Council to carry out a public consultation prior to deciding whether to enter an SVA.

The claimant argues that a “duty to consult” arose under the Children and Families Act, which imposes a duty on English local authorities to keep their provision for children and young people with special educational needs and/or a disability under review, and in carrying out that review, to consult with children and young people, their parents, governing bodies of schools and other relevant people.

Last week (13 November), the Court ordered that two similar claims challenging Devon County Council’s decision to enter a safety valve agreement would be joined to the claim against Bristol.

Both of the Devon claims, which will proceed on a “rolled-up” basis, argue that the council failed to comply with the Public Sector Equality Duty under s.149 Equality Act 2010 and failed to carry out “adequate inquiries” prior to the decision to enter the SVA was taken.

In addition, one claimant also argues there has been a failure to consult under the Children and Families Act 2014.

According to Watkins Solicitors, a 2.5-day hearing to consider all three claims will now go ahead in early 2025.

Watkins Solicitors are instructed on the Bristol CC challenge and one of the Devon CC challenges, for which Steve Broach KC (39 Essex Chambers) and Alice Irving (Doughty Street Chambers) act as counsel.

Rook Irwin Sweeney are instructed on the other Devon CC challenge, for which Ollie Persey (Garden Court Chambers) acts as counsel.

A spokesperson for Devon County Council said: “We are aware of the claims and will of course cooperate fully with any legal process. Devon County Council is one of many local authorities nationally to have been invited to enter Safety Valve agreements with the Department for Education. We have followed the same process as other local authorities and have fully complied with our legal obligations in entering our Safety Valve agreement. We are dedicated to improving the lives of our children, young people and families, and will be strongly defending this matter. 

“It is recognised nationally that the Dedicated Schools Grants are in deficit for many local authorities and as a result, many, including Devon, have been invited to enter safety valve agreements with the Department for Education, with additional resources released to councils upon meeting key milestones. In return, councils agree to action plans that will return them to a point where their spending is within budget.

“Devon County Council announced in March 2024 that it had entered into an agreement to receive £95 million over a nine-year period to address its historic Dedicated Schools Grant deficit, bringing additional resources to ensure the needs of children, young people and their families, are being met.”

Its spokesperson added: “Our action plan is very clear in relation to improvements to our working practices, and that this will be achieved without implementing blanket policies that don’t consider the individual needs of children and young people. Since entering the agreement, we have dedicated time and resource into reducing the backlog of EHC assessments to ensure that we are meeting the needs of children, young people and their families, as soon as we can.”

Bristol City Council has been approached for comment.

Lottie Winson