The report finds that Welsh councils spend between 10 and 16 per cent of their total education budgets on special educational needs. Reported budgets varied between £444 and £790 for each pupil in maintained schools. SEN budgets are growing much more quickly than budgets for other school provision and in 2006/2007 the level of funding represented a 10.4 per cent rise on the previous year.

The report includes examples of good practice in the way SEN funding is planned and managed from Neath Port Talbot, Cardiff; Swansea, Rhondda Cynon Tâf, Conwy, Caerphilly and Blaenau Gwent. Nevertheless, the report also identifies the need for improvements across councils in areas such as financial reporting, data collection, monitoring and evaluation and collaboration.

Despite the wide variation between councils in the level of budgeted SEN funding and in the way that they use it, there is little correlation between these factors and the quality of SEN provision. Councils are improving their knowledge of how SEN funding is spent, but they are unable to make reliable comparisons of their expenditure with that in similar councils. Early work is underway at a few councils to evaluate the effectiveness of some types of SEN provision. However, this work is often hampered by the limited availability of data about the progress pupils with SEN are making.

The report makes seven recommendations to Welsh councils and two to the Welsh Assembly Government including:

• Welsh councils should agree with schools their responsibilities in relation to the use of any SEN funding delegated to them, ensuring these are documented and easily accessible to schools and governors;

• Welsh councils should collect data about the progress of all pupils with SEN in such a way that it can be analysed by school, type and severity of SEN, and the nature of support provided;
  

• The Welsh Assembly Government and Councils should develop benchmark data relating the volume, cost and effectiveness of a broad range of SEN provision.

Today’s report will be used by the Welsh Assembly Government, alongside a recent Estyn report (see Notes to Editors), to help develop a guidance document on managing SEN funding for local education authorities.

Auditor General for Wales, Jeremy Colman said today:
“Millions of pounds are being spent on children with special educational needs in Wales, but it is difficult to know whether all the money is spent wisely. Some councils are doing things right, but there is still a general need to tighten up the way funding is planned, monitored and reported. The findings in my report, and Estyn’s should help to inform the Assembly Government’s current review and promote further improvements.”