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Local authorities in England are grappling with a £2.4bn “funding black hole” for special educational needs, according to new analysis, with councils warning the impact on young people could be “catastrophic”.

Rising demand has resulted in councils’ SEN deficits growing six-fold since 2018, according to analysis by the County Councils Network (CCN) and the Society of County Treasurers. A third more children have become eligible for extra funding support over the past three years and the number now stands at 473,000 children.

The CCN is warning that the government’s planned SEN reforms later this year – which will try to reduce the “postcode lottery” in services and make the system less adversarial – will not be enough to plug the deficit that could rise to £3.6bn without action.

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