The Department for Education has published guidance on how local authorities can apply to pass more high needs funding directly into mainstream schools from 2027 to 2028.
The guidance is aimed at local authorities, not individual schools. But schools should still pay attention. If a local authority is approved to raise the £6,000 additional support cost threshold, schools may take on greater responsibility for meeting the costs of pupils with SEN from their delegated budgets. The funding change would come with a stronger expectation that schools can show what support they provide, why they provide it, and how they use the money.
That does not mean schools should wait for a final decision. The sensible move is to get the underlying information into shape now.
What does the new DfE guidance say?
The DfE guidance, published on 10 July 2026, explains the application process for local authorities that want to increase the existing £6,000 threshold for the 2027 to 2028 financial year.
The proposed arrangement would move funding from the high needs block into the schools budget. Local authorities would distribute it through a new local SEND inclusion factor, on top of the local funding formula. They would also need to explain the proposed threshold, the amount transferred, the factors used to distribute the money, and any targeted funding for schools with disproportionately high levels of SEND or complex SEND.
Local authorities intending to apply must register an expression of interest with the DfE by 18 September 2026. Formal applications are due by 30 October 2026. Any approved change would apply from the start of the 2027 to 2028 financial year.
The guidance is also clear that the arrangements may change after the consultation on a local SEND inclusion formula. Schools should treat this as a direction of travel, not a final funding promise.
What could change for schools?
The immediate answer is: it depends on the local authority proposal and whether the DfE approves it.
The practical answer is that schools may need a much clearer view of their existing SEND provision. Leaders may have to understand which pupils are receiving support, what the support costs, how it is distributed across the cohort, and what evidence shows that it is helping.
A school that relies on several spreadsheets, old plans, and individual staff memory will struggle to answer those questions quickly. The problem is not only financial. It becomes harder to plan provision, explain decisions to governors, and have a sensible conversation with the local authority.
The new guidance says schools should receive clear information about the extra funding linked to any increased threshold. It also says local authorities should provide guidance so schools can report how the funding is used in their annual inclusion strategy.
That creates a simple test for school systems. Can the school connect funding, provision, pupils' needs, and review evidence without rebuilding the picture from scratch?
What should SENCOs prepare now?
1. Map current provision by need and cohort
Start with a plain view of what the school is already doing. This should include the type of support, the pupils or groups receiving it, who delivers it, how often it happens, and when it is reviewed.
Do not turn this into a giant catalogue of every interaction. The useful question is whether a leader can see the main provision decisions and the reason behind them.
Separate ordinary classroom practice from additional SEN support. Quality First Teaching matters, but it should not be used as a vague label for everything. A good record explains what is ordinarily available, what has been added, and what has changed after review.
2. Estimate the pressure points
Look for parts of the school where support is already stretching the budget or staff capacity. This might include adult support, specialist advice, structured interventions, accessible resources, communication support, or provision for pupils with complex needs.
The purpose is not to build a case for every pound. It is to give leaders a realistic view of what the school is already funding and where a higher threshold might create new responsibility.
3. Make the review trail visible
Funding decisions should not sit apart from pupil records. If a school provides additional support, the record should show the intended outcome, the review date, what happened, and what the school decided next.
This is the same assess, plan, do, review discipline schools need for good SEN support. It also gives leaders something usable when they explain provision to families, governors, the trust, or the local authority.
4. Prepare questions for the local authority
Schools should ask how any proposed local SEND inclusion factor would work in practice. Useful questions include:
- What threshold is being proposed?
- How will funding be distributed between schools?
- How will the authority account for different levels of SEND and complex need?
- What information will schools need to report in their annual inclusion strategy?
- How will the arrangement deal with the difference between maintained school and academy funding timelines?
- What support will schools receive while the new system is introduced?
These are not technical questions for finance teams alone. They affect how SENCOs plan provision and how school leaders explain decisions.
Why current records matter more if funding changes
A funding change does not improve support by itself. Schools still need to decide what a pupil needs and check whether the provision is working.
That is why a current record matters. A school cannot plan well from a funding figure alone. It needs to see the pupil, the provision, the review history, and the next decision in the same working picture.
MeritDocs keeps SEND documents in one searchable hub, so staff can filter by pupil, see what is current, review dates, and export when needed. That gives a SENCO a more dependable starting point for linking provision to the records behind it.
The point is not to create another report for its own sake. It is to stop finance, provision, and pupil records becoming three separate versions of the truth.
What should school leaders do before autumn?
A sensible preparation list is short:
- Ask the local authority whether it is considering an application.
- Review the current SEND provision map and remove stale entries.
- Identify the support that is already funded from the school budget.
- Check that review dates and ownership are visible.
- Agree what evidence the school would need for its annual inclusion strategy.
- Give governors and trustees a clear explanation of the possible change, without presenting it as decided.
Schools should also read the DfE guidance directly and monitor the consultation response. The official guidance is available at GOV.UK: apply to provide upfront SEND funding to mainstream schools. The 2026 to 2027 high needs funding operational guide provides the wider funding context.
The useful preparation is ordinary good SEND practice
The proposed funding route may change how money reaches schools. It does not change the basic job of understanding pupils' needs, planning support, reviewing impact, and keeping a record that people can trust.
If the local authority applies, schools will have a better conversation if they already know what provision they deliver and how it is reviewed. If the proposal changes, that work is still useful.
MeritDocs helps schools keep that working record findable and current, rather than scattering it across disconnected files. The gain is not a better funding spreadsheet. It is a SEND record that can support the next decision when the funding rules, staff, or pupil needs change.
FAQ
Is the upfront SEND funding change confirmed?
No. The July 2026 guidance explains how local authorities can apply for approval for 2027 to 2028. The local authority must consult its schools forum and the DfE must approve the application.
Does the guidance mean schools will automatically receive more money?
No. Any change depends on the local authority proposal, the DfE decision, and how the local SEND inclusion factor is designed and applied.
What should a SENCO do first?
Start by making current provision, ownership, costs, and review evidence easier to see. That information will help whether or not the local authority applies.
What is the strongest preparation a school can make?
Keep one current, usable record of SEND provision and review decisions. Patchwork files make funding and provision conversations harder than they need to be.