Councils face 2027/28 budget gaps as SEND transport and Warm Homes demand rises

Two new sets of figures published on Monday 12 October add to the picture of budget pressure on councils across the UK. Essex County Council’s budget for transporting children with special educational needs to school has nearly doubled between 2021-22 and 2025-26, according to the BBC. The Local Government Chronicle (LGC) reports that councils in England are rationing the Warm Homes grant because demand is outstripping central government money.

Both stories point to costs and demand rising faster than the funding available, the same pressure behind the 2027/28 budget gaps reported earlier. Several councils are asking residents to weigh in on higher bills or cuts, and North Somerset’s survey remains open until midnight on Sunday 1 November.

Essex SEND transport and Warm Homes: what the new figures show

The BBC reports that Essex County Council allocated £22.37m for home-to-school transport for children with special educational needs and disabilities (SEND) in 2021-22, and £42.73m in 2025-26. The council released the figures after a Freedom of Information request. The BBC headline describes the rise as 100%; our own arithmetic on the two budget figures gives an increase of £20.36m, or about 91%.

The second row matters for readers. According to the BBC, the council provided transport for 13,939 children as of April, including young people classed as mainstream, against 6,519 in April 2022. The number of children carried has therefore grown faster than the budget, which suggests the rise is driven mainly by demand rather than by higher cost per child. That is our reading of the two sets of figures, not a claim made by the council.

Sam Journet, Essex’s cabinet member for SEND, skills and education, said the pressures on the SEND system are recognised as a national challenge. Independent councillor Wendy Stamp said more special schools and expert teachers were needed around the county to stop travel costs spiralling.

On energy efficiency, LGC reports that a number of English councils have already exhausted, paused or rationed their initial Warm Homes money. It names York, Lewisham, Sheffield, Liverpool and Cambridgeshire among the places where schemes have been forced to close. The article is behind a paywall, so we have only its opening summary, and we cannot say how much money each scheme received or how many households are waiting.

Not every council is in the same position. The BBC reports that Nottingham City Council approved a £300,000 Care Leaver Grant Fund, running for two years from 2027, as part of a wider package of more than £20m funded from an underspend in its 2025-26 budget.

North Somerset’s 2027/28 budget gap in plain English

Some councils say they cannot balance their budgets without difficult choices. North Somerset Council expects a funding gap of around £12m in 2027/28 between the cost of services and the money available. Its leader, Cllr Mike Bell, said: “We face a £12m funding gap next year, driven by rising costs, growing demand for children’s and adults’ social care, and a £6m cut in government grant funding.”

Local authority budget shortfalls: who pays more, and who is protected

For some residents the answer is council tax. Wandsworth says council tax would need to rise by around 94% next year unless the government changes its position.

Low-income households are treated differently. Wandsworth is consulting on changes to its Council Tax Reduction Scheme from April 2027. It would end 100% discounts for working-age households, so everyone pays something, while extending help to some households who currently receive none. Support would rise from about £6.9m now to £12.4m in 2027/28, then fall back to £7.1m by 2030/31. Pension-age households are unaffected because those rules are set nationally. These are proposals, not final decisions.

In Scotland the argument is about the overall funding settlement. Scottish Labour says councils would have received £15.483bn in 2025-26 had their funding kept pace with the Scottish block grant, against the £13.482bn they got. Deputy First Minister Jenny Gilruth said the 2026-27 Budget gives councils record funding of almost £15.7bn. The two sides are using different measures, and readers should treat each as a claim from that side.

What to do now

If you live in North Somerset, the council’s budget survey is open until midnight on Sunday 1 November. Anyone aged 16 or over with an interest in how the council spends money can take part, online or on paper at any North Somerset library. It asks which services you would prioritise, where spending could be reduced, and your views on council tax for 2027/28. The council says a draft budget will then go to a further public consultation.

If you live in Wandsworth, watch for the council’s questionnaire, which it says will launch shortly. The council says the changes, if approved, would take effect from 1 April 2027. If you are a working-age household on a low income, check how the proposed income bands would apply to you before responding.

If you are thinking of applying for a Warm Homes upgrade, check your own council’s website first, because LGC reports that some schemes have paused or closed. Elsewhere, look for budget consultations and cabinet papers, since council tax decisions for 2027/28 are being shaped now.

Your questions answered

How much are UK councils facing in budget gaps?

It varies widely. In these sources, North Somerset expects a gap of about £12m for 2027/28. This is a council estimate.

Which councils are cutting services?

None of the councils in these sources has confirmed specific cuts. LGC reports that several councils have paused or rationed Warm Homes schemes, saying demand has outstripped central government money. North Somerset is asking residents where spending could be reduced.

Why is SEND school transport costing more in Essex?

The BBC’s figures show the number of children receiving transport rose from 6,519 in April 2022 to 13,939 as of April, while the budget went from £22.37m to £42.73m. Councillor Wendy Stamp said more local specialist schools were needed to reduce travel costs. Sam Journet said the pressures on the SEND system are a national challenge.

What services will be affected by council budget pressures?

That depends on each council’s decisions. North Somerset says some services are fixed because the council must provide them by law, and some funding, such as for Birnbeck Pier, can only be spent on its stated purpose. Wandsworth says council tax pays for services including waste collection and support for older people. Scottish Labour argues that underfunding has meant less money for schools, social care, roads and housing, which the Scottish Government disputes.