The 2025 Budget has now been announced, alongside the early release of the Office for Budget Responsibility (OBR) forecasts. Together, they paint a clear picture of what SEND families can expect over the coming years.
Some changes offer welcome relief. Others point to deeper challenges ahead — especially for parents relying on EHCPs, disability benefits, social care, or local authority support.
This post breaks down exactly what has changed, what hasn’t, and what SEND families need to prepare for now.
1. Two-Child Benefit Cap Scrapped — Immediate Relief for Many Families
The biggest headline for families is the removal of the two-child benefit cap.
This means:
- Parents with three or more children will once again receive the child element of Universal Credit or Tax Credits for every child.
- Families can expect substantial increases in support, depending on household size.
- SEND families — who often face higher living costs, reduced ability to work, and additional caring responsibilities — benefit significantly from this change.
The cap disproportionately harmed families with disabled children, who often have higher financial demands and less capacity to offset cuts. Its removal restores critical financial support.
Impact:
More stability, less pressure, and better ability to manage the extra costs associated with raising a SEND child.
2. Universal Credit, Carer’s Allowance and Disability Elements Will Increase — But With Tighter Assessments
The Budget confirms an inflation-linked uprating of key benefits, including:
- Universal Credit
- Carer’s Allowance
- Child disability elements
- Limited Capability for Work-related Activity (LCWRA)
- PIP and DLA rates
This is positive — especially for parents who have had to reduce work hours or leave employment entirely due to caring responsibilities.
However, the OBR forecasts also confirm:
- Government plans to reduce long-term spending on disability benefits
- Expectation of stricter assessments, more reviews, and lower award rates
- Increased scrutiny around PIP and health-related UC claims
Impact:
SEND families may receive higher rates on paper, but could face more difficulty securing or keeping these awards.
3. No New Funding for SEND Services, Schools or Local Authorities
Despite widespread pressure and a national SEND system crisis, the Budget does not include:
- New ring-fenced SEND funding
- Resources to cut EHCP delays
- Funding to tackle local authority SEND deficits
- Money to expand specialist school capacity
- Additional funding for therapy provision
- Support for children with EBSA (Emotionally Based School Avoidance)
- Increased funding for Alternative Provision or specialist teaching staffing
This is one of the most important takeaways.
While household income may increase from benefit changes, SEND families will continue to face:
- long delays
- overstretched schools
- lack of provision
- refusals to assess
- poor-quality EHCPs
- battles over placement
- rising tribunal cases
The system remains under significant strain.
Impact:
Financial support improves, but access to services and education remains extremely challenging.
4. Pressure on Local Authority Budgets Will Get Worse
The OBR’s updated forecasts show that the UK economy will grow more slowly than previously expected. That means:
- councils will have less funding in real terms
- SEND departments will continue operating in crisis conditions
- more parents may be pushed into mediation or Tribunal
- stricter thresholds may be applied during assessments
- more unlawful delays and refusals are likely
The Budget does nothing to address the SEND deficit recovery plans many councils are operating under, meaning families may experience:
- reduced transport support
- reduced respite and social care
- increased pressure to accept unsuitable mainstream placements
Impact:
SEND support services remain fragile and underfunded nationwide.
5. Transport, Social Care and Support Services Remain at Risk
With no new funding allocated to children’s social care or SEND transport, councils will continue to:
- scrutinise transport eligibility
- limit or remove travel assistance
- reduce respite provision
- raise thresholds for social care
- push families toward “informal support”
- resist out-of-area specialist placements
These pressures increase parental stress and can cause escalation into crisis.
Impact:
SEND families will need to be prepared to challenge transport and care decisions.
6. EHCP Backlogs and Delays Will Continue
Nothing in the Budget deals with the root causes of the SEND crisis:
- national EHCP backlogs
- shortage of Educational Psychologists
- overwhelmed SEND officers
- lack of training for mainstream staff
- shortage of specialist placements
- insufficient mental-health provision
- high EBSA cases
- long-term underfunding of SEN support
Parents should expect:
- delays well beyond the legal 20-week deadline
- pushback on assessments
- late annual reviews
- poor-quality plans
- provision not delivered
- increased pressure to accept mainstream settings regardless of need
Impact:
The legal rights stay the same, but the system remains overwhelmed.
Parents will need to be legally informed and prepared to challenge unlawful practices.
7. Summary: What Today’s Budget Really Means for SEND Families
Positive changes:
- Removal of the two-child cap
- Uprating of UC, PIP, Carer’s Allowance and disability elements
- Increased financial support for many low-income families
- Improved stability for larger families
Negative or concerning realities:
- No additional SEND funding
- No fixes to the EHCP crisis
- No support for SEND transport or social care
- Tighter disability assessments expected
- Local authority pressures will increase
- Schools remain under-resourced
- Children with anxiety/EBSA remain unsupported
- More families may be pushed into Tribunal
In short:
Budgets improve benefit payments — but not services.
SEND families may be financially better off, yet practically no further forward.
What Parents Should Do Next
- Check your UC journal to ensure all children are listed.
- Use benefit calculators to estimate new entitlement.
- Document your child’s needs clearly for upcoming assessments.
- Be prepared to challenge EHCP or benefit decisions.
- Follow AskEllie for updated guidance as new details emerge.
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