DfE confirms £860 million high-needs capital allocation to expand SEND places

The government has allocated the first round of more than £3bn intended to create inclusive classrooms across the country. It believes that this funding will allow more children and young people with SEND (special educational needs and disabilities) to achieve and thrive at their local school.

The government has said it will allocate £860 million to every council in England. According to the Department for Education, this represents the largest single allocation of high-needs capital funding. The government’s intention is to create more inclusive physical spaces with the objective of driving a transformative expansion of Inclusion Bases. These are physical spaces in schools that ensure early specialist support becomes part of the fabric of mainstream schools.

Strengthening mainstream and specialist provision

Councils must now sign a written agreement to prioritise increasing places in mainstream schools. This is in recognition of the key role councils play in delivering SEND reforms. They must adopt inclusive strategies that support positive outcomes for children. Outcomes could include reducing the number of children with SEND who need to travel long distances to school, and making sure every child who needs a place in an Inclusion Base can access one.  

Councils should also use their allocation to ensure there are enough special school and AP places. They must meet the needs of children and young people with the most complex needs. This reflects the vital role these settings play in providing support for some of the most vulnerable children.

Where councils choose to spend their funding on special school places, they should set out a clear, evidence‑based rationale. They must explain why this approach would better respond to local need. The government want to ensure investment in places delivers for local families.

Yesterday’s announcement [24 March 2026] follows the government’s landmark SEND reforms. The government believes it is a significant step towards ending the postcode lottery of support. Its objective is for every child to have access to high quality, inclusive education closer to home.

Additional funding to improve inclusion and meet rising demand

This new funding comes alongside £500 million per year already offered to nurseries, schools and colleges. The funding is intended to support inclusive practice. Estimates suggest that the average primary school will receive around £14,000 through the Inclusive Mainstream Fund. This is in addition to core funding allocations, with the average secondary school receiving around £48,000 in 2026-27.

Inclusion bases enable pupils to move seamlessly between specialist support and mainstream classes. They help them to meet a wide range of needs, and build confidence and belonging.  

Schools can use the high‑needs capital funding to adapt their environments to support inclusive design. This may include changes to improve accessibility and inclusivity, such as enhancing ventilation, acoustics and lighting to create more suitable sensory environments.

This funding is announced alongside new data showing an increase of 260,000 children with an EHCP requiring a special school place in 2025/26. It indicates that demand for SEND support has outstripped capacity in recent years.

Further updates include:

• £235 million allocated over the next two years to local authorities that have chosen to receive equivalent per‑pupil funding instead of a free school. The government believes that this will create more specialist places quickly and efficiently. It estimates that the funding will create over 4,000 additional specialist places.
• Over £2.1 billion allocated in capital maintenance funding for financial year 2026-27. The government intends for this money to improve the condition of school and sixth form college estates, such as by replacing roofs and heating systems. The government will announce the outcomes of the Condition Improvement Fund later in the spring as part of this funding.

Schools minister, Georgia Gould, said:

“Our SEND reforms will deliver specialist places where they are needed and ensure every secondary school has a space designed for children with SEND which they – and their families – can rely on. This is a further step towards rebuilding trust in the system and transforming outcomes for young people.”

Kiran Gill, CEO of The Difference, said:

“Ruby’s school set up an Inclusion Base, and her attendance rose from 17 per cent to 95 per cent through more dedicated literacy support alongside vital relationship-building with trusted adults. Today she’s in the mainstream for all lessons, and has set her sights on studying psychology at university. 

“The ambition behind [the] announcement is right. What will determine whether it works is implementation support for schools. The Difference is working to share practical guidance to set a whole-school Inclusion strategy building from the universal up, and establish an Inclusion Base as part of this work.”

Sarah Clarke and Jo Harrison, co-chairs of the National Network of Parent Carer Forums, said:

“The NNPCF welcomes investment that supports greater inclusion within mainstream schools, particularly where it enables settings to increase staffing capacity and access high-quality training. Where it is appropriate for a child or young person with SEND to be educated in a mainstream setting, it is vital that schools are properly resourced to meet their needs effectively. When supported in this way, mainstream provision can offer inclusive, high-quality education that enables children and young people to thrive. It is essential that this funding is delivered in a way that is sustainable, co-produced with families, and focused on achieving meaningful outcomes for children and young people.

Paul Whiteman, general secretary of school leaders’ union NAHT, said:

“This money is vital to improving the SEND system and we welcome further detail on its allocation. Councils will need to work together with schools to ensure that Inclusion Bases and specialist school places are delivered in the areas most needed. Currently there are not enough places and there is an unfair postcode lottery for support, with children often having to travel long distances for the right educational placement. This investment should help change that but it must be carefully utilised.

“We particularly welcome the fact that councils are being urged to use the money to deliver sufficient special school places for children and young people with the most complex needs. Inclusion is a worthy goal for many pupils but there will always be some with particularly severe needs who need specialist care and the lack of places for the most vulnerable must be urgently addressed too.”