Wiltshire Council faces £96 million black hole over special needs spending
It's due to rising costs for children with special educational needs and disabilities
Last updated 13th Jun 2025
Wiltshire Council faces a £96 million financial ‘black hole’ – with not enough money in its reserves to cover the deficit.
The debt has been caused by the growing cost of supporting children with special educational needs and disabilities.
The council has permission to run up a ring-fenced deficit – known as a ‘statutory override’ – to meet its statutory requirements around SEND funding until March 2026.
The Department for Education recently told the council that ministers are “not considering any extensions to agreements.”
At the first meeting of Wiltshire Council’s new Liberal Democrat-run cabinet, councillor Jon Hubbard, cabinet member for children’s services, told colleagues that since 2018, the pressure on the council’s SEND funding had increased dramatically, while contributions from the government had failed to keep pace.
The number of children supported by an Education, Health and Care Plan – EHCPs – increased by 51 per cent between 2018/19 and 2022/23 and demands increased by 46 per cent over the same period.
But the money paid by the government over the same period increased by just 36 per cent.
Promising “not to sugarcoat” the situation, Cllr Hubbard said: “The critical issue facing us is the statutory override that expires in Aril 2026.
“Without clarity from the government about how the £96 million of deficit will be managed, this remains our single biggest financial risk.
“We simply cannot absorb this level of debt within our existing reserves.”
In March 2024, the council signed a bailout agreement known as a ‘safety valve’ with the Department for Education
The DfE committed to give the council an additional £67 million over five years for SEND funding, on the condition that the council balanced its Dedicated Schools Grant budget.
However, with the number of EHCPs “continuing to exceed forecasted levels,” the council is not on track to meet its targets.
Cabinet members were told that the Dedicated Schools Grant deficit stands at £61.2 million this year and is forecast to be £96 million by the time the statutory override expires in April 2026 – more than the council’s reserves.
Cllr Gavin Grant, cabinet member for finance, said “The safety valve is one of the most serious threats to this council.”
Council leader Ian Thorne agreed, saying it was “the one thing that keeps us all awake at night.”