UK (Parliament Politics Magazine) – Bridget Phillipson’s department rejected the Office for Budget Responsibility’s SEND forecast, citing a £6bn funding gap with no clear plan.
As reported by The Telegraph, Labour intensifies its clash with the OBR over Budget claims, accusing the fiscal watchdog of misrepresenting key announcements.
The Department for Education accused the forecaster of being “fundamentally wrong” in its assessment of SEND support reforms.
Chancellor Rachel Reeves announced on Wednesday, 26 November, that ministers intend to assume direct control of SEND funding from local councils. The OBR warned that the government has not clarified how the £6bn shortfall would be funded, with no identified savings.
What did the Department for Education say about the OBR’s SEND cost projections?
A blog post released by the Department for Education said,
“While the Office for Budget Responsibility has published projections about Send costs alongside the Budget, these were hypothetical illustrations.”
It said,
“What they have set out regarding the impact on school budgets is fundamentally wrong. The OBR suggests funding could be taken from the core schools budget. It will not. And their projections do not account for the detail of our reforms.”
The blog post added,
“We have committed to a period of co-creation before we publish our Schools White Paper early next year and are working with children, parents and the education sector to improve experiences and outcomes – helping make the system more sustainable in the long run.”
The accusation from Ms Phillipson’s department comes after the OBR released a step-by-step record of talks with the Treasury ahead of last week’s Budget.
The report revealed that the Chancellor and her officials overstated the fiscal shortfall, setting the stage for tax hikes and higher welfare spending.
What did Bridget Phillipson say about the £6bn SEND shortfall?
Bridget Phillipson has declined to say how the government will cover a £6bn shortfall in the SEND budget.
The Education Secretary said the funding would come from the Government’s budget, but failed three times to indicate which cuts would be needed.
She said,
“We’re in discussion as to how we’re going to do that longer term, but this is a longer term challenge. We want to go as fast as possible. This will be absorbed into government budgets overall, not by education budgets and not by the core schools budget.”
Ms Philliipson added,
“So this is a question for the whole of government finance. And it’s a question that we’ll have to work through with the Treasury. This is something we will have to return to at the next spending review, but this is not a question for now.”
She acknowledged that the £6bn gap was significant and, when pressed on where the government would source the funding, replied,
“This is years into the future, actually into the next spending review in 2028.”
A leaked WhatsApp message from the Education Secretary described the OBR’s interpretation of the shortfall as “misleading.”
How has the Budget leak put Rachel Reeves and OBR Chair Hughes under scrutiny?
Both Rachel Reeves and OBR chairman Richard Hughes faced pressure on Saturday, with the Treasury criticizing the watchdog’s publication of pre-Budget discussions.
The revelations followed reports from Treasury insiders to newspapers, warning that the government’s public finances could face a £20bn–£30bn deficit.
Mr Hughes will face the Treasury Select Committee and questions over the OBR’s leak of its Budget forecasts ahead of the Chancellor’s speech.
The Chancellor will answer questions from broadcasters on Sunday, appearing on political programs such as the BBC’s Sunday with Laura Kuenssberg and Sky’s Sunday Morning with Trevor Phillips.
How many students are eligible for taxpayer-funded transport?
The majority of school administrators (91%) report that at least some of their students are eligible for free, school-provided transportation.
Nearly half of administrators (44%) say the number of students who qualify for this service has grown over the last five years, and 45% expect the need to keep increasing.
Some 520,000 children with SEND received taxpayer-funded transport to school during the 2023–24 academic year.
