#2026/686Updated recoupment rules for special school costs in England
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This regulation changes how English local authorities recover education costs from each other for looked after children who have an Education, Health and Care plan and attend a special school. The new rule applies to education provided from 1 September 2026. If one English authority provides the education and the child belongs to another English authority’s area, the home authority must pay the providing authority. The authorities can agree the amount, but if they do not agree within six months of a payment claim, the payment must cover the relevant education costs, including transport costs, subject to exclusions for amounts already received.
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Key Changes
- Creates a new recoupment rule for education provided from 1 September 2026.
- Applies to looked after children with an EHC plan who attend a special school.
- Requires the home authority to pay the providing authority, either by agreement or, if no agreement is reached within six months, based on relevant expenditure including transport.
Obligations
What this law requires
From 1 September 2026, where an English providing authority provides education to a looked after child who has an Education, Health and Care plan and attends a special school, and the child belongs to the area of another English home authority, the home authority must pay the providing authority for that education.
If the English home authority and English providing authority agree an amount payable for the relevant education, the home authority must pay the agreed amount to the providing authority.
If no payment amount is agreed within six months from the date the providing authority submits a payment claim under regulation 10, the English home authority must pay an amount equal to the relevant expenditure incurred in making provision for the child’s education.
The providing authority must submit a claim for payment to the home authority under regulation 10 before the six-month period for agreeing the payment amount begins to run.