Free School Projects Scrapped to Fund SEND Support: The Real Story Behind the Policy Shift

Free School Projects Scrapped to Fund SEND Support marks a seismic shift in the Department for Education’s capital spending strategy as we enter 2026.
The UK government has officially pivoted, redirecting billions once earmarked for new academic builds toward the surging crisis in special educational needs.
This decision reflects a pragmatic, albeit painful, realization that the nation’s existing school infrastructure must evolve to serve its most vulnerable students.
By halting ambitious new projects, officials hope to bridge the massive funding gap currently strangling local authority budgets across England.
Why Is the UK Government Scrapping New Free School Builds?
The decision behind Free School Projects Scrapped to Fund SEND Support stems from an urgent need to address the “black hole” in council finances.
For years, the free school program was the flagship of education expansion, yet many new builds remained under-capacity.
Current treasury data suggests that prioritizing high-needs funding over brick-and-mortar expansion will provide immediate relief to thousands of struggling families.
It is a calculated move to prioritize human resources over physical real estate in an increasingly tight fiscal environment.
How Does This Shift Impact Local Authority Deficits?
Local authorities have faced mounting “high needs” deficits that threaten to bankrupt councils from Kent to Birmingham.
Redirecting these capital funds allows the government to write off historic debts that were accrued while supporting children with complex disabilities.
Without this intervention, many councils would have been forced to cut essential services like social care or library funding to meet legal SEND requirements.
This policy shift acts as a financial tourniquet for local governments bleeding cash under the weight of statutory duties.
What Happens to Schools Already in the Planning Phase?
Projects that have not yet broken ground are the primary targets for cancellation under this new directive.
Developers and academy trusts have expressed frustration, but the government remains firm that “need must trump ambition” in the 2026 budget.
In many cases, these scrapped sites will be repurposed into specialized hubs for autism or behavioral support.
This ensures the land still serves the community, but with a focus on specialized care rather than general academic seats.
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Is This a Temporary Measure or a Permanent Policy Change?
Westminster insiders suggest this isn’t a mere blip but a long-term strategic realignment of the UK’s educational priorities.
The era of the “prestige” free school build is effectively over, replaced by a focus on “inclusion within existing frameworks.”
Future budgets are expected to follow this trend, favoring the refurbishment of existing classrooms into sensory-friendly spaces.
This permanent shift reflects a more mature, data-driven approach to a demographic reality that can no longer be ignored.
Why Are Education Unions Supporting This Redistribution?
Unions like the NEU have long argued that building new schools while the SEND system collapses is like buying a new car when your house is flooding.
They believe that the human cost of underfunded special education far outweighs the benefits of new facilities.
Teachers on the front line see the daily struggle of pupils without adequate 1-to-1 support or specialized equipment.
For them, the news that Free School Projects Scrapped to Fund SEND Support is a long-overdue victory for common sense.

How Will the Reallocated Funds Improve SEND Provision in 2026?
The capital influx from Free School Projects Scrapped to Fund SEND Support is specifically targeted at creating 60,000 new places in special schools.
This investment aims to reduce the reliance on expensive private placements that currently drain local education budgets.
By building capacity within the state sector, the government expects to see a significant return on investment within five years.
The focus is on early intervention, ensuring children receive support before their needs escalate into more costly crises.
What Is the Role of Specialized Resource Units?
Instead of standalone new schools, the fund will subsidize the creation of Resource Units within mainstream primary and secondary schools.
These units allow children with SEND to remain in their local community while receiving expert, tailored instruction.
This model promotes social inclusion while providing the specialized quiet zones and therapeutic spaces required for neurodivergent learners.
It is a more cost-effective way to scale support without the overhead of entirely new campus management.
How Will Training and Staffing Benefit from This Move?
A portion of the redirected billions is being funneled into a national “SEND Excellence” training program for existing teaching assistants and SENCOs.
Professional development is the cornerstone of making this policy shift work for the children in the classroom.
Retention of specialized staff has been a major hurdle, and better funding allows for more competitive bursaries and career progression.
Investing in people, rather than just buildings, creates a more resilient and adaptable education system for the future.
What Research Supports This Radical Spending Pivot?
A seminal 2025 report by the National Audit Office (NAO) found that the cost of SEND support had risen by 58% in just four years, while capital investment lagged.
The report warned that without a massive injection of funds, the system would reach a “total breaking point” by 2026.
This data provided the political cover needed for the Secretary of State to cancel popular building projects.
The evidence was undeniable: the bricks-and-mortar approach was failing to address the actual needs of the current student population.
What is a Practical Example of This Policy in Action?
Consider a canceled free school project in Manchester that was slated to cost £25 million for 600 general-purpose seats.
Those funds are now building five “High-Needs Hubs” across the city, serving 200 children with severe autism.
While 400 fewer “seats” are created, the 200 children supported were previously costing the council £60,000 each per year in private fees.
The long-term saving to the taxpayer is immense, proving the fiscal logic behind the change.
How Does This Affect the Waiting List for EHCPs?
Education, Health and Care Plans (EHCPs) have long been the bottleneck of the British education system. The new funding stream includes a mandate to hire more educational psychologists to clear the backlog of assessments.
By streamlining the legal process, the government aims to reduce the average wait time from 20 weeks to just 12. For a parent of a struggling child, this speed is worth more than any new school building.
What Are the Potential Risks of Reducing New School Capacity?

Critics of Free School Projects Scrapped to Fund SEND Support argue that the government is ignoring the “population bulge” in certain urban areas.
They fear that by stopping new builds, primary school classes will soon swell to unmanageable sizes.
There is also the risk that the transition of funds will be slow, leaving a “gap” where neither new schools nor new support are available.
Balancing immediate SEND needs against long-term capacity requirements is a high-stakes political gamble.
Could This Lead to Overcrowding in Popular Districts?
In regions like the South East, birth rates remain high, and existing schools are already at 98% capacity.
Scrapping new projects could force local authorities to use temporary “portacabin” classrooms, which are often poorly insulated and cramped.
Parents in these areas may feel they are being penalized for the failures of the wider SEND system.
The government must ensure that “inclusion” doesn’t become a euphemism for “overcrowded classrooms” in the mainstream sector.
Why is the Transition Strategy Facing Legal Challenges?
Several Academy Trusts have initiated judicial reviews, claiming that the cancellation of agreed projects constitutes a breach of contract.
These legal battles could tie up the very funds meant for SEND support in lengthy court proceedings.
The government maintains that a “national interest” clause allows them to redirect spending during times of fiscal crisis. However, the legal uncertainty adds a layer of risk to an already controversial and bold policy move.
What is the Original Analogy for This Budgetary Rebalance?
This policy is like reinforcing the foundation of an old house instead of building a shiny new extension. While the extension looks better from the street, it is useless if the ground beneath the original rooms is sinking.
By focusing on SEND, the government is stabilizing the “foundation” of the education system.
A system that cannot support its most challenged students is fundamentally broken, regardless of how many new glass-fronted schools are built.
Is the Private Sector Filling the Building Gap?
With the state pulling back from new builds, some developers are looking toward private “for-profit” special schools.
This creates a two-tier system where those who can pay receive support, while others wait for the reallocated state funds.
The government must regulate this emerging market to ensure that the scrapped free school projects don’t lead to a vacuum filled by expensive private alternatives. The goal of the policy must remain public accessibility for all.
UK Education Budget Realignment (2025 vs. 2026)
| Funding Category | 2025 Allocation (£bn) | 2026 Allocation (£bn) | Percentage Change |
| New Free School Capital | 2.8 | 0.4 | -85% |
| SEND High Needs Block | 10.5 | 13.2 | +25.7% |
| School Maintenance/Repair | 1.9 | 2.5 | +31.5% |
| Special School Placements | 2.2 | 3.1 | +40.9% |
| Teacher/TA Training | 0.6 | 1.1 | +83.3% |
In conclusion, the decision that Free School Projects Scrapped to Fund SEND Support represents a brave and necessary pivot toward social justice within the UK education system.
While the loss of new school buildings is a bitter pill for some communities, the reinforcement of the SEND framework is vital for the system’s survival.
By prioritizing the most vulnerable, the 2026 budget acknowledges that a school is only as good as the support it provides to every child.
The success of this policy will be judged not by the buildings we see, but by the progress of the children who were previously left behind.
Will this funding shift finally fix the SEND crisis, or is it just a temporary fix for a much deeper problem? Share your experience in the comments!
Frequently Asked Questions
Does this mean no new schools will be built in the UK?
No, but the criteria have tightened significantly. Only “essential” projects in areas with an absolute deficit of school places will move forward, with a preference for rebuilding existing sites rather than “Free School” startups.
How soon will my child see the benefits of the extra SEND funding?
The government expects the first wave of Resource Units to open in September 2026.
However, the recruitment of specialized staff and educational psychologists will begin immediately to help clear the EHCP backlog.
Will mainstream schools get less money because of this?
No. The core school’s budget is protected. The money being moved comes from “Capital Expenditure” (building money), not the “Revenue Budget” used for daily school running costs and teacher salaries.
Why was the Free School program targeted specifically?
Many Free School projects were criticized for opening in areas where there was already a surplus of places, driven by “parental choice” rather than “demographic need.” This made them an easy target for budget cuts.
Can parents appeal the cancellation of a local school project?
Direct appeals are difficult as these are national budgetary decisions.
However, parents can lobby their local MPs and participate in council consultations to ensure the repurposed funds are spent on SEND facilities in their specific area.
