Teachernet, Management of SEN expenditure LEA Guidance

The Management of SEN Expenditure

The guidance for local authorities (LAs) aims to provide information and suggested approaches for local authorities to manage special educational needs (SEN) expenditure.

The Management of SEN Expenditure was put together following an investigation into special educational needs funding and it includes a number of case studies showing effective local authority practice.

Delegating resources to mainstream settings

The DCSF recommends that local authorities:

delegate SEN resources to mainstream schools
develop a funding formula to allocate resources for most pupils with additional and special educational needs
develop arrangements to distribute additional resources for pupils with the most severe and complex SEN
work with schools and other stakeholders to ensure that respective responsibilities are clear and to build parental confidence
ensure that the required provision can be delivered, particularly where statements are maintained.

Monitoring and accountability

Local authorities' responsibilities under the Education Act 1996 to identify, assess and provide for children with SEN take precedence over the Code of Practice on LA-School Relations.

The Special Educational Needs (Provision of Information by Local Education Authorities) (England) Regulations 2001 requires LAs to publish information on SEN provision, including what support will be provided by the authority and what schools are expected to provide from their delegated budgets.

The DCSF recommends that all local authorities:

develop systematic accountability arrangements
base these on school self-review and focus on pupil outcomes and thresholds for support and challenge
avoid placing an unnecessary bureaucratic burden on schools
provide schools with a budget statement that shows clearly how additional educational needs (AEN) and SEN resources are calculated
provide parents with clear information about the progress and attainments of their child, the arrangements that are being made and who is responsible for making the provision.

Independent and non-maintained special schools

Expenditure on non-maintained and independent special schools fees was about £506 million in England during the 2006-07 financial year.

The DCSF recommends that local authorities:

undertake a corporate audit of unmet need and look at ways in which they can increase local capacity, working with social services and health throughout the Children and Young persons Strategic Partnership (CYPSP) or Children's Trust
establish a cash-limited budget and maintain an up-to-date predictive spreadsheet
establish a multi-professional panel with a flexible, problem-solving approach, emphasising prevention and early intervention
use the National Contract, developed by the National Association of Independent Schools and Non-Maintained Special Schools (NASS) and the Local Government Association
review placements annually and compare arrangements with other authorities
work with other authorities on regional or sub-regional planning of provision
have regard to the Competition Act — purchasers must not be seen to abuse a dominant market position.

Maintained special schools and additionally resourced provision

As more pupils with moderate learning needs are included in mainstream schools, maintained special schools are being asked to cater for children with more severe and complex needs.Special schools need budgets that are relatively stable but flexible enough to respond to changes in pupils' needs. Many special schools are well placed to develop integrated services to address social and healthcare needs and outreach.

The DCSF recommends that local authorities:

develop a system of planned funded places in partnership with schools
work with maintained special schools and resourced provisions to develop local capacity
work with parents and voluntary organisations to address any concerns and build confidence
set out arrangements to support temporary, part-time and dual registered placements
work with schools to develop and agree a policy on outreach, particularly where resources have been delegated for the purpose.

Managing change

Changing the way in which SEN resources are distributed takes time. It is important to establish support for the principles at an early stage and headteachers, special educational needs coordinators (SENCOs) and parents need to understand the reasons for change and feel confident that children's needs will be met.

The DCSF recommends that local authorities take the following steps:

form a project group
identify current expenditure and compare with other similar authorities
identify the principles and consult widely on them
review the principles in the light of the consultation
model the impact of the proposed changes and consider any transitional arrangements
carry out further consultation
rReview the proposals in the light of the consultation
implement the changes, supporting with training and information.

Reporting of expenditure through Section 52

There are currently differences in the activities reported under particular lines and variations in how central costs are apportioned.

Reporting was most accurate where SEN and education finance officers had collaborated.

Changes have been made to reporting lines to better reflect the current distribution and use of resources.

Meeting statutory requirements

Where statements are maintained, LAs, in partnership with schools, must ensure that the required provision can be delivered and arrangements are set out clearly for schools and parents.

A statement should specify clearly the needs it is intended to meet, the objectives it is designed to achieve and how it will be delivered.

LAs must not, in any circumstances, have blanket policies not to quantify provision. Decisions about support must be made on an individual basis.

Resources for SEN in early years settings

In all but exceptional cases, children in early years settings will be supported through the resources and intervention arrangements that are normally available to schools and other early years settings.

Where 'top up' resources are indicated, we recommend that they are distributed through a panel of head teachers and other appropriate stakeholders.

From April 2003, local authorities were allocated the Early Years and Childcare Grant. One component of this is 'SEN and Disability Development Grant', including SENCO training, early intervention and SEN/disability and childcare. It is a ring-fenced budget intended to strengthen existing services and develop new ones.

Resources for post-16 SEN in the schools sector

The establishment of the Learning Skills Council (LSC) has not altered LAs' statutory duties to young people aged 16 to 19 with SEN who are enrolled at schools.

Local authorities retain responsibility for the assessment and reviewing of statements and arranging educational provision for pupils with statements.

Funding for pupils at School Action and School Action Plus is included in the schools' allocation from the LSC.

Funding of maintained special schools remains the responsibility of the LA. It also remains the LA's responsibility to pay the fees of 16 to 19 year old pupils at non maintained and independent special schools.

The Learning and Skills Council is currently reviewing SEN funding, in all educational sectors and it is envisaged that a common approach to Additional Learning Support (ALS) will be developed across all sectors.

Download full text in Word or PDF format.

In 2004, a series of eight seminars on SEN Funding and SEN Transport took place with representatives from over 140 authorities attending. Read feedback from the group discussions.

SEN funding FAQs

Definition of SEN

SEN Code of Practice

Code of Practice: LA-school relations

National Contract

National Association of Independent Schools and non maintained schools (NASS)

Learning Skills Council

UK Acts & Legislation

Last updated: 16 July 2007