Huge boost for Exeter families as Government writes off most of Devon’s £200m SEND debt

Families in Exeter who have struggled with SEND delays and stretched services could see relief after the Government confirmed it will write off most of Devon’s £200 million SEND deficit.

The decision to fund 90 per cent of historic shortfalls held by local authorities has been welcomed by Exeter’s MP and follows years of mounting demand for special educational needs support across the city and wider county.

According to the Government’s own figures, around £740 million has been allocated for approximately 10,000 new SEND places in 2024, and a further £3 billion earmarked for expanded provision in 2025. 

The SEND system is also set to see a new “inclusion” judgement in future Ofsted reports, aimed at improving accountability for support outcomes.

Steve Race said SEND was a “massive” issue for families in Exeter.

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“From my conversations on the doorstep and the dozens of families who have contacted me for help, there’s no doubt that the system needs to change,” he said.

Mr Race held roundtable discussions in Exeter last year with parents and professionals to gather first-hand experiences of the current system, which he has fed back to ministers in Westminster.

“The Government is already getting on with the job of transforming the ‘lose, lose, lose’ system left behind by the Tories with new training and investment,” he said. 

“The white paper, which is due later this month, will set out crucial changes to the SEND system, based on conversations like the ones I’ve been having in Exeter.

“But the deficits built up by local authorities under the so-called Safety Valve system had become an unsustainable barrier to progress at a local level.”

“I’m pleased that the Government has been able to write off the vast majority of Devon County Council’s debt, which I hope will make it easier for the SEND team there to provide timely and effective support to children and families.”

Devon’s SEND budget pressures have been significant. In recent years, Devon has reported the highest level of individual EHC plans per 10,000 population among comparable counties in the South West. 

In Exeter itself, local SEND teams support thousands of pupils with Education, Health and Care (EHC) plans, with demand rising by more than 20 per cent over the past five years.

Devon County Council has also welcomed the Government’s funding move, describing it as a “major step forward”.

Councillor James Buczkowski, the council’s Cabinet Member for Finance, said the funding will give the council greater stability in managing SEND and allow more resources to be focused on frontline support.

“This is a very welcome announcement and a major step forward,” he said. 

“It gives the council greater financial stability in SEND and allows us to focus more of our resources on improving frontline support for children and young people.”

The council said the announcement comes amid years of rising costs and demand in SEND services. 

Across Devon, the number of pupils with EHC plans has grown faster than available funding, pushing some authorities into deficit. The write-off of historic debt is intended to ease those pressures.

However, councillors also stressed that wider financial challenges persist. Devon’s adult social care budget continues to operate under significant strain, and children’s services overall have reported higher expenditure than income for the past three financial years. 

In Exeter, the cost of providing specialist transport and support services for SEND pupils has also risen steadily.

“For too long, councils have faced rising demand while the balance of funding has shifted away from the national government and onto local taxpayers,” added Cllr Buczkowski.

“Today’s decision helps to relieve some of that pressure in SEND, and that is good news for families across Devon.

“We now need to work through the details of the announcement, but this puts us in a stronger position to set a 2026 budget that is focused on supporting children and young people and protecting vital services.”

The council will now assess the detailed implications of the funding as part of its budget-setting process for 2026–27. 

Draft proposals are due to be considered by Cabinet on 17 February, ahead of Full Council approval later in the month.

For many families in Exeter - where long waiting lists and difficulties accessing specialist support have been ongoing concerns - the write-off of historic SEND debt is likely to be seen as an important development, though many will be watching closely for tangible improvements in services and outcomes on the ground.