Worried Norfolk school leaders have warned sudden county council budget cuts could trigger "significant redundancies" and a spike in exclusions of children.
Bosses at academy trusts which run more than 100 schools across the county were "shocked" at Norfolk County Council's announcement it will cut funding for children with special educational needs and disabilities (SEND).
Five multi-academy trusts warned the Conservative-controlled council that changes in top-up funding will slash some trust's budgets by up to £1m.
In a letter to Sara Tough, director of children's services at County Hall, school leaders warned: "Against an already very tight financial picture this will result in significant redundancies across schools in Norfolk.
"The effect on children will be negative in the extreme and will result in a significant spike in exclusions across the county, as schools will have a hugely reduced ability to keep specifically funded children safe or able to learn.
"This comes with huge costs, both for the children and to the local authority, who will, ultimately, have to educate children that have been excluded.
"The alternative to increased exclusions would be that other children’s experience of school is extremely negatively impacted, along with that of our staff who will be under increased pressure."
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Just four weeks before the summer holidays, the county council wrote to schools saying it needed to adjust SEND top-up funding allocations over the next two terms to remain within budget.
The chief executives of five trusts - the Diocese of Norwich Education and Academies Trust, the Diocese of Norwich St Benet's Multi Academy Trust, St John the Baptist Catholic Multi Academy Trust, Synergy Multi Academy Trust and Broad Horizons Education Trust - say the short notice has given no time to rethink their budgets.
The county council signed a "safety valve" agreement with the government in March last year, getting £70m for education services and support for SEND children up until 2029.
The bailout was to cover the deficit the council accrued amid a rising number of children needing specialist provision or extra support.
But, just a few months after the agreement was signed, the council told the Department for Education its scheme was "off track" and was likely to have an £11.8m deficit in 2028/29.
County Hall's Local First Inclusion programme aims to change the way children's needs are met, but Ms Tough told schools SEND top-up funding requests were "much higher" than had been accounted for in modelling.
She said in 2023/24, the council had an "unprecedented" 1,900 referrals, so £36.6m funding was allocated - a £12m overspend which Ms Tough said was "unsustainable".
She said, while £35m would be available in 2024/25, the level of funding in autumn and spring would be at a lower rate, which she acknowledged would create "some challenges".
But Richard Cranmer, chief executive officer of St Benet's Multi-Academy Trust, which runs 16 schools including in Diss, Acle, Harleston, Catfield and Newton Flotman, urged the council to reconsider.
He said: "In a nutshell, the provision for those most vulnerable children will be reduced at a time when they need it more than ever.
"In many instances schools will not be able to deliver the support that children with additional needs are entitled to and require and, in many cases, as set out in their Education and Health Care Plans."
The Diocese of Norwich Education and Academies Trust estimates it will see a 48pc reduction to top-up payments in 2024-25 - about £1m.
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A Norfolk County Council spokeswoman said: "We are committed to continuing to invest in SEND while delivering a long term plan which in time can bring costs down.
"For 2024/25 we are setting a new increased total funding envelope of £35m - circa 50pc increase on the previous year’s budget - as we do recognise how important this investment is.
"However, we do acknowledge that schools and trusts will have been planning their budgets based on anticipated funding levels and that the allocation we are making may be lower in many cases.
"All public budgets have a finite limit and so we need to make a change as a system.
"We will work closely with schools to support them to best meet the needs of children and are working with system leaders on a longer term plan, which may devolve funding to local areas, so that groups of schools can collectively decide how to best support children."
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