Special Educational Needs and Disabilities Funding

[Sir Gary Streeter in the Chair]

Before I call Sir Vince Cable to move the motion for this important debate on special educational needs and disabilities funding, I can report that 12 colleagues have put in to speak from the Back Benches. Therefore, after Sir Vince’s speech, there will be a voluntary time limit of three and a half minutes. Please try to contain yourselves a little in interventions; otherwise, we will go well over time.

I beg to move,

That this House has considered special educational needs and disabilities funding.

It is a privilege to speak on this subject, which is of immense concern to a large number of us and to our constituents, and that is reflected in the demand to speak. It is rare that we get a Brexit-free zone in Parliament at the moment, but this is one, and it is right that we pay attention to it. Far too many Government problems have been squeezed out by the attention given to a single issue, but how we treat children with special educational needs will have enormous implications for decades to come.

Essentially, I will speak about the conflict between two sets of pressures: an irresistible force and an immovable object. The irresistible force is, of course, the demand of parents of children with special needs, who have been led to believe, by the very progressive Children and Families Act 2014, that their children’s needs will be met and their full potential realised through education, health and care plans. The immovable object is money, manifesting itself now in a serious financial crisis for local authorities, which are expected to meet statutory obligations, but find that demand is rising and becoming much larger than the funding available through the special needs block. In some cases, those local authorities are in extreme difficulty.

I will introduce the debate by quoting a parents’ group called Richmond SEND Crisis, which wrote to me yesterday, describing the problem from the parents’ point of view. The group said:

“The crisis in funding has consequences. It means more stress and mental health issues for both parents and children, parents being forced to give up work, increased levels of family break up, increased levels of children being disruptive in school, failing in school or not being in school at all. It means that schools and the wider school community suffer, as children without proper support tend to absorb a disproportionate amount of time from school staff and may be disruptive in class.

Does the right hon. Gentleman agree that one significant change is the growth in home-school education? Given the amount of time it takes to get an assessment, parents are now just taking their children out of school. That cannot be a good thing.

Indeed. That is happening on a growing scale, and is augmented by the fact that many children are being excluded because of the lack of support. That, in turn, contributes to home education, which may be inferior.

Does my right hon. Friend agree that the crisis in funding is about not only the overall sum of money but the distribution? Government policy means that schools have to absorb up to £11,000 of the cost of meeting an EHCP. Schools that do the right thing and accept children with special educational needs are therefore punished, and those that do not are rewarded. Does he agree that that is an unfair and wrong distribution?

Indeed. In addition to the problem facing local authorities, schools in effect pay a £6,000 penalty. Many schools that were committed to inclusion now find that increasingly difficult and are shying away from their obligations.

I congratulate the right hon. Gentleman on securing the debate. I fully agree with him about funding for special needs schools. Hereward College in Coventry has struggled with funding for a number of years, and does an excellent job. Another dimension is that children who have mental health problems often go home to a disruptive family life. That is not conducive to their education or mental health. Does the right hon. Gentleman agree that something should be done about that?

Yes, I do. By mentioning mental health, the hon. Gentleman reinforces the point that I will go on to make. When we talk about special needs pupils, we are talking about significantly different classes of people with fundamentally different problems. Of course, they are all individuals, but we are talking about 1.2 million people altogether in the SEN system—up by about 0.5 million since 2014. About a quarter of them, according to Mencap, have learning difficulties. That actually understates the problem, because Mencap estimates that about 40% of children with learning difficulties are never identified at school.

About 120,000 children are on the autistic spectrum, which is the most rapidly growing and difficult group to accommodate. About 300,000 have attention deficit hyperactivity disorder. Others have a physical disability. I have had correspondence with those with visual impairment problems, who lack equipment, and other groups such as deaf children, who are not included in the SEN categories at all.

We are dealing with large numbers of very different categories of people, but what they have in common is that demand for EHCPs is growing rapidly: it has grown by about 35% over the four years since the legislation was enacted, which is about three times the growth of the school population. It is also three times the amount of funding available through the Government grant allocation.

I thank my right hon. Friend for securing this important debate. He will be aware that one of the successes during the coalition was our insistence that disabled children need to be educated up to the age of 18. That has been a real game-changer; however, the Government did not make it clear that transport for those children should be paid for; they left it discretionary—some county councils pay for the transport, and others do not, which essentially means that those children have to stay at home. Does he agree that that is an anomaly that the Government need to rectify? Otherwise, thousands of disabled people aged 16 to 18, who should be going to school or in training, because that is what we want them to do, will not have that chance.

Order. I remind Members that interventions should be brief.

My hon. Friend is right; that is one of many anomalies. Many such issues were not properly accounted for and are not being fully funded. I will come to others in a moment.

The consequence of the growing demand is that many local authorities, which are genuinely trying to do their best in most cases, are accumulating large financial deficits. The Local Government Association, which has done lots of research on it, believes that there will be a gap of about £1.6 billion at the end of the next financial year. That is unaccounted for at present.

Some London authorities—I speak as a London MP, but I know that other parts of the country have similar problems—have a shortfall from the high needs block of about 7%. For about six boroughs in London, it is more than 10%. For my borough, Richmond, it is 20%, and I think three others are in an even worse position, including the borough of my right hon. Friend the Member for Kingston and Surbiton (Sir Edward Davey). For his borough, I think it is 40%.

My right hon. Friend is right that the situation for Kingston is the worst of any London borough. We are spending more than 40% above our allocation, with a potential knock-on to the budgets of schools across the board, and potentially even the solvency of the local authority. Given how serious that is, does he agree that Ministers need to take action now and that we need to talk to the Department of Health and Social Care? The health service is often not paying for the health part of EHCPs.

My right hon. Friend is absolutely right: those are both key parts of the solution. For example, I have discovered that there are children whose need for wheelchairs—clearly a health requirement—is treated as an educational need. There are many such cases in which the finance sits in silos and is not sensibly dealt with.

My right hon. Friend is being very generous with his time, and I congratulate him on securing this debate. My constituent Sally Foulsham, who runs a parent group called SHIFT, is in contact with more than 100 parents. She reports that what most frustrates them is the lack of funding for child and adolescent mental health services, which is a major block to unlocking the funding that should be available for EHCPs in the first place. Does my right hon. Friend agree?

Yes. The decline in CAMHS has led to a lot of children not being properly helped at an early stage and requiring greater special needs provision as a result.

To conclude my point about finance, a large number of local authorities are in serious financial trouble, and not just in London—even those that are doing their best and are perfectly competent. Consequently, they have a large financial deficit sitting on their balance sheet. One of their main sources of anxiety is what will happen with respect to Government legislation that treats them as requiring special measures if they do not sort out the problem. At the moment, they are not sure whether to deal with the problem immediately. Perhaps the Minister could advise us what conversations her colleagues in the Ministry of Housing, Communities and Local Government have had about how to deal with the problem.