Devon's special educational needs and disabilities (SEND) service is predicted to overspend by £88 million this year, highlighting the urgency of anticipated national reforms, according to a council report.
The cabinet heard that the service would overspend again as demand from families rises and costs escalate.
The SEND service helps children with learning difficulties or physical disabilities access education.
The average annual cost of an education, health and care plan (EHCP) has jumped to more than £19,900 in July, up from just over £17,000 in March.
A key factor is students being placed in SEND-focused schools, prompting efforts locally and nationally to increase the number of SEND children in mainstream settings.
Earlier this year, the government said it would pay off 90 per cent of SEND deficits at councils with a roughly £5 billion grant, but that applies to deficits up to the end of the previous financial year, which ended in March 2026. The expected overspend this financial year could fall on Devon unless further support comes from Parliament.
A report to Devon County Council's cabinet stated: "If the anticipated government support [for this financial year] is not received, a corresponding pressure of up to £79.3 million would fall to the council and would need to be managed through available reserves and other mitigating actions."
The report added: "Therefore, there remains a significant financial risk that no formal government commitment has been made regarding the continuation of the current support arrangements beyond March 2026. Should government policy change, or if support is reduced or withdrawn, the council could face substantially higher costs than currently forecast, resulting in additional pressure on its medium term financial position and reserves."
Devon said it had submitted its SEND reform plan to the Department for Education (DfE) to secure its funding, but approval had not yet been confirmed. Once approved, Devon should receive just over £191 million towards its total SEND deficit of just over £218 million up to March 2026.
The council has an earmarked SEND reserve of nearly £42 million, but a possible £27 million residual deficit, plus nearly £9 million if the government agrees to pay 90 per cent of overspends for this financial year, would quickly erode it. If no government help comes, the reserve would be entirely subsumed by the predicted £88.8 million overspend.
Local councils have been calling for SEND funding reforms for years, with successive governments delaying mooted transformations.
Devon’s SEND Service Faces £88m Overspend