DfE Consults on New SEND Funding Model for Mainstream Schools
The consultation, which opened on 10 July and closes on 18 September 2026, seeks views on proposals to give schools a greater share of SEND funding upfront rather than relying on local authority “top-up” funding.
The proposal on plans to introduce a new funding model forms part of the Government's wider SEND reform programme and aims to help schools provide support earlier, reduce bureaucracy, and create a more inclusive mainstream education system.
Under the existing system, mainstream schools receive SEND funding through their core budgets, including allocations linked to factors such as deprivation and low prior attainment. Schools are expected to meet up to the first £6,000 of additional SEND support costs for each pupil from their own budgets before they can access extra “top-up” funding from their local authority’s high needs budget.
The DfE says the £6,000 threshold has remained unchanged since 2013 and has fallen significantly in real terms. As a result, more schools are applying for high needs funding to support pupils with needs that were previously funded directly through school budgets. The department argues this has created greater reliance on formal assessments, delayed access to support and increased administrative burdens for school staff. In 2026-27, mainstream schools receive more than £5 billion in notional SEND funding through the National Funding Formula, while high needs funding is distributed separately through local authorities.
From 2027-28, the DfE wants to test a new approach that would allow participating local authorities to increase the amount schools are expected to fund before accessing top-up funding. To support this change, local authorities would transfer some funding from their high needs budgets into mainstream school budgets. The additional funding would be distributed through a new “local SEND inclusion factor”, shown separately from existing school funding allocations. Local authorities would develop their own proposals, consult their school’s forum and seek DfE approval before implementing any changes.
According to the DfE, the move would give schools greater certainty over SEND funding, enable earlier intervention, reduce delays caused by funding applications and allow leaders to plan support more proactively. The department is also seeking views on safeguards, funding distribution methods and whether there should be a limit on how much schools are expected to contribute before receiving top-up funding.
The consultation signals the first step towards a potential long-term shift in SEND funding, with more responsibility – and more funding – moving directly into mainstream school budgets. The consultation, which opened on 10 July, closes on 18 September 2026.
