We are aware that some local authorities have found it difficult to meet the increasing costs of provision for children and young people with education, health and care (EHC) plans. High needs funding, which is allocated to local authorities for the education of children and young people with high needs (including, but not limited to, those pupils with EHC plans) will increase by £780 million, or 9.6%, in the 2022-23 financial year. This will bring the total high needs budget to £8.9 billion, an increase of over £2.3 billion since the 2019-20 financial year. This vital extra resource will help local authorities to manage their cost pressures in this area.
We are working with HM Treasury, as part of the ongoing Spending Review, to agree funding levels beyond the 2022-23 financial year, and up to 2024-25 financial year. We expect the outcome of the Spending Review to be announced on 27 October.