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Keir Starmer has been warned not to block long-awaited reforms to special needs education, following warnings that growing demand is driving councils to bankruptcy.Two former Labour education secretaries warned that current levels of spending are "unsustainable", with nearly one in five children in England now classified as having a special need.

The Government's long-awaited schools white paper is expected to include radical changes, including cutting the number of pupils allocated education, health and care plans , which give them a legal right to support. Instead, all schools will provide special needs help for pupils when needed by default.

It was due to be published by Education Secretary Bridget Phillipson last year but was delayed after Number 10 became concerned about a backlash from parents and some MPs.

A new report by think tank Policy Exchange, warning that change is urgently needed, has been endorsed by former education secretary Ruth Kelly, who said: "Restoring sanity and certainty to the system is the only way to secure the long-term future of SEND provision".

Estelle Morris, another ex-education secretary, said: "The increased expenditure in recent years is greatest in areas of least deprivation which adds to the evidence for the need for radical change."

Since 2018/19, SEND spending has increased in real terms by 65% in the 50% most affluent local authorities in England, compared to 51% in the 50% most deprived.

Spending on SEND transport, including home-to-school travel, has more than doubled at 42 councils - with Calderdale Council seeing a 385% rise.

By March 2025, England's councils had run up £4 billion in SEND-related debts, a figure projected to rise to £17.8 billion by 2029. It has been estimated that three quarters of local authorities could declare bankruptcy by 2027 due to rising SEND costs.

The Government has committed to transfer this spending - and the associated deficits and debts - to the national books from 2028, meaning central government will take on the burden.

In a foreword to the report, Sir Stephen Houghton, Leader of Barnsley Council, said: "The increasing number and complexity of Education, Health and Care Plans are placing councils under immense strain.

"Change is now essential. We need a funding model that is fair, sustainable and capable of supporting all children to achieve their potential - without placing local authorities in untenable financial positions."

Zachary Marsh, Research Fellow in Education at Policy Exchange and author of the report, said: "The Government has made the right call to tackle the SEND funding crisis head on and take the pressure off local councils and onto the Treasury balance sheet. It now must hold its nerve or else this burden will become a ticking time bomb worth billions, for which taxpayers will pay the price, whilst support fails to reach the most vulnerable young people who need it most. The cost of doing nothing on SEND is now too high to ignore."

The Government this week announced that a £1 billion refurbishment of the nation's schools will include adaptations to ensure they are suitable for children with special needs.

And Sir Keir Starmer said this week: "I am determined to fix the broken SEND - special educational needs and disabilities - system. No parent should have to fight for the support their child needs."