West Sussex councillors warn of SEND funding crisis as statutory override nears end

West Sussex councillors have appealed to MPs for urgent support amid growing pressure on services for children with special needs and disabilities, warning of a looming financial crisis.

At a meeting of the county council’s children and young people’s services scrutiny committee, it was revealed that more than £54 million was overspent in 2024/25 on the high needs portion of the Dedicated Schools Grant (DSG). The overspend is part of a national trend, but local leaders say the disparity in government funding has left larger counties like West Sussex significantly disadvantaged.

Cabinet member Jacquie Russell warned that the situation would worsen in March 2026 when a temporary accounting measure—known as the statutory override—ends, potentially forcing councils to carry DSG deficits on their official books. With the local SEND budget already £123.2 million in deficit and national overspending projected to hit £4 billion by 2027-28, Russell described the system as “an absolute disgrace” and called for a fundamental review of funding allocations. A restructure is underway locally, and MPs are being urged to attend meetings of the F40 group to better understand the urgency of the situation.