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Council leaders have warned they are on course to rack up debts of £18 billion while the education system is "heading towards total collapse", after demand for special needs education shot up. They issued a plea for help to Chancellor Rachel Reeves, after Number 10 delayed planned reforms following a backlash from parents.

Education Secretary Bridget Phillipson had promised to publish a white paper this year with proposals to cut the number of expensive education, health and care (EHC) plans issued by councils. These give children a legal right to support, but the Department for Education was proposing that special needs education (SEND) would instead be provided by default in mainstream schools for youngsters that need it.

However, the publication has been delayed until next year while the schools minister overseeing the changes, Catherine McKinnell, was sacked by Sir Keir Starmer in September.

A report by the County Councils Network (CCN) warned that costs have soared due to a dramatic rise in EHC plans, which reached an all-time high of 638,000 this year.

Councils are increasingly forced to rely on expensive private school placements for young people with the plans. They are £4 billion in debt as a result, but this is expected to reach £17.8 billion by 2029 - nearly £1,000 pounds for every child and young person in England, the report said.

Matthew Hicks, Chair of the County Councils Network and leader of Suffolk County Council, said: "Last month's delay to the Schools White Paper was massively disappointing not only for councils, but for families too. Time is of the essence: the government's continuing inaction only compounds the difficult experiences for families, letting down thousands of young people whilst pushing councils to the financial brink.

"As today's research shows, the system is heading towards total collapse in little over four years. This could mean families facing even longer waits for support, councils facing a level of demand that the system was never designed for, and local authorities staring down unimaginable deficits of almost £18bn."

Amanda Hopgood, Chair of the Local Government Association's Children, Young People and Families Committee, said: "Rising high needs deficits are pushing councils to the brink, and these findings reinforce the urgent need for reform of the SEND system, which is failing too many children and families."

A Department for Education spokesperson said: "This government inherited a SEND system on its knees, with thousands of families struggling to get the right support. We're determined to put that right by improving mainstream inclusion so every child can thrive at their local school.

"We've held over 100 listening sessions with families and will continue engaging parents as we deliver reform through the Schools White Paper.

"We're already making progress - with better training for teachers, £740 million for more specialist places, earlier intervention for speech and language needs, and SEND leads in every Best Start Family Hub."

In a letter to the Commons Education Committee announcing the delay, Ms Phillipson said: "To help us deliver the most effective set of reforms we can, I have taken the decision to have a further period of co-creation, testing our proposals with the people who matter most in this reform - the families - alongside teachers and other experts."