The one message all election candidates are likely to Send voters

There’s one issue that virtually all of Devon’s prospective councillors will bring up as they door-knock residents as part of their election campaigns.

Almost without fail, the issue of special educational needs and disabilities – known as Send – will arise because it’s emotive, controversial and, crucially, amid the cost-of-living crisis, expensive.

At its crux lies a massive overspend, long waits for families whose children need assessments so they can get the extra support in school, and a level of demand that only seems to rise.

And Devon is far from alone, with a host of other councils also racking up huge Send deficits.

The Conservatives have been in power at Devon County Council since 2009, and so may be blamed by opposition parties for failing to tackle the problems  and for financial mismanagement around the issue.

In defence, Conservative candidates vying to be elected in next month’s county council elections, may claim they have been dealt an impossible hand because of a combination of increasing demand following years of government funding cuts.

They are also likely add that councillors approved a 5.5 per cent increase in the children’s services budget (which includes Send) for this financial year, equivalent to more than £12 million, to take it above £237 million.

So, what should voters make of the issue?

Rising pressure

It’s true that Devon County Council has, and continues to, overspend on Send.

The cumulative overspend, built up over years, has surpassed £131 million.

It budgeted for a £31 million overspend in the 2024/25 financial year, but is more likely to rack up a £52 million overspend.

The overspend is being spent on residents, though, helping fund support for around 10,000 young people in Devon with Send, according to figures released by the council.

The county council was awarded £95 million as part of a government rescue scheme, known as safety valve, but this cash is spread out over eight years, and also requires Devon to hit various targets and to contribute to its deficit from its own coffers.

That means that its reserves – the equivalent of a council piggy-bank – are now at around £77 million, which is less than the overspend it has built up on Send.

Financial challenges

That might lead to some candidates claiming that Devon County Council is on the brink of bankruptcy.

Councils cannot technically go bankrupt, but when their finances become too strained, they have to issue a Section 114 notice, which prompts the council to be temporarily run by government officials.

The reason Devon and a number of other councils with large Send deficits haven’t had to raise this financial white flag is because of a rule that allows the overspend to be ring-fenced.

This means that while Devon and several of its peers are overspending compared to their Send budgets, that overspend is treated as an IOU to themselves.

That rule ends in 2026, though, unless the government either extends it, finds a way to write the debt off, or creates some form of payment plan for councils.

Exactly what prime minister Keir Starmer will decide to do is not yet known, but it must be high up his agenda given the combined Send deficit in England is around £6 billion.

But what exactly is the overspend and what could be causing it?

Balancing the books

The overspend is money that Devon, and other councils in a similar position, have spent on Send above the amount included in their annual budgets.

That overspend is recorded, but doesn’t get included in their accounts.

Cash could instead have gone on other services which are experiencing their own pressures.

What Devon’s Send overspend is not, senior sources from the council say, is borrowing or debt.

The overspend is not accruing interest and the council is not borrowing money from a commercial lender to directly fund it.

In fact, Devon County Council hadn’t borrowed any money since 2006 until February this year when it took out a one-year loan for £21.5 million to cover rising costs, caused by factors including inflation, and increases in employers’ National Insurance contributions and minimum wages.

Somewhat ironically for Devon, which has almost exclusively had either a Conservative or Liberal Democrat administration for the past 40 years, it was the coalition government of David Cameron and Nick Clegg that expanded Send.

Their policy shift meant Send provision was extended for people up to 25 years old at a time when austerity was biting and council budgets were being squeezed.

Devon is also part of the so-called F-40 group, whose members are the lowest-funded local authorities in terms of education-related cash.

And demand for EHCPs is above the national average in Devon.

In February, the council said there were 9,950 EHCPs, which was around 550 more than it was expecting to deal with.

Furthermore, it had a backlog of 620 overdue plans in 2024/25, which the government wants it to halve this financial year, and the average cost of an EHCP is around £17,000.

Searching for solutions

Send is a statutory service which means councils have to provide by law.

Some candidates may argue their party could run the council’s children’s and Send services better, but voters may ask anyone canvassing their vote how exactly they intend to improve things.

The issue is a national one, with commentators suggesting 18 of the largest county and unitary councils would plunge into insolvency overnight if the ability to keep the overspend off the books is not extended past the March 2026 deadline.

It’s likely all candidates will claim there needs to be change, but voters should ask what that change should be, and how much influence County Hall has compared to Westminster.