THE special educational needs (SEN) system is failing to deliver better outcomes for young people and is putting local authorities at “significant financial risk,” the National Audit Office (NAO) warned today.

The watchdog said the system is “financially unsustainable” and urgently requires reform.

Insufficient capacity in schools and long waiting times have eroded parental confidence, with only half of education, health and care (EHC) plans issued within the 20-week statutory limit in 2023.

Demand for EHC plans has surged by 140 per cent since 2015, with most of the increase related to autism, speech and language needs, and mental health issues.

The NAO is calling for “whole-system reform” to improve outcomes for children and achieve financial sustainability.

Paul Whiteman, general secretary of school leaders’ union NAHT, said: “The warning lights are flashing red — without proper investment, things will get even worse, and the system may face complete collapse.

“High-needs deficits must be written off and urgent, targeted investment is needed to stop children in different parts of the country from being left behind.”

Teachers union NASUWT general secretary Dr Patrick Roach said: “Children, young people, their families and the staff that work with them deserve better.

“We repeat our call to the Chancellor to use the Budget next week to relieve some of the financial pressures faced by local authorities with the highest SEN deficits.

“More broadly, it is important that the high priority the government has placed on addressing the SEN crisis leads to action to place the system on a more sustainable footing.”

Education Secretary Bridget Phillipson pledged long-term reforms focused on mainstream provision and early intervention to improve life chances for vulnerable children.