Guidance

High needs provision capital allocations: guidance

Updated 25 March 2026

Applies to England

Intended purpose of this funding

High needs provision capital allocation (HNPCA) is intended to support local authorities in their duty to provide suitable school placements for children and young people with special educational needs and disabilities (SEND), or who require alternative provision (AP).

Scope

HNPCA is being provided as an un-ringfenced grant under section 31 of the Local Government Act 2003, subject to conditions detailed in the associated Grant Determination Letter.

This grant funding is intended for:

• children and young people with complex needs or additional needs
• children and young people who might require AP

Local authorities are free to choose to spend the funding across the 0 to 25 age range, and we encourage local authorities to consider the full range of need, including in dedicated post-16 institutions, other further education (FE) settings, and early years settings.

This grant funding is not intended for:

• higher education, including universities and other higher education provision
• any provision for those aged 25 and over
• individual mobility equipment such as wheelchairs; however, local authorities might choose to spend this funding on capital installations such as ceiling hoists for lifting non-ambulant children into, for example, a hydrotherapy pool
• maintenance work, which should continue to be covered by Devolved Formula Capital funding (DFC), the Condition Improvement Fund (CIF) or School Condition Allocations (SCA)

The funding is provided for capital purposes only and cannot be used for revenue expenditure of any kind, such as training or staff costs.

We encourage local authorities to invest their allocation across the full range of mainstream educational settings, early years through to post-16, to help ensure consistently positive experiences for children and young people across the education system.

Vision and objectives

Wherever they can effectively be supported to do so, children and young people with SEND should have the opportunity to achieve and thrive in their local mainstream school, reducing the need to travel a long way to access a specialist placement. While local authorities can determine how best to spend this funding to address local priorities, we want to work alongside them to achieve our shared ambition for better outcomes, better experiences for children and young people and their families, and a financially sustainable system which provides better value for money.

This £860 million in capital funding for 2026 to 2027 is essential to increasing the capacity of mainstream schools to meet a wider range of needs. We encourage local authorities to use this funding to set up inclusion bases^{[footnote 1]} in mainstream settings to increase local capacity, and to consider these as a central part of their local sufficiency planning. This will ensure that mainstream settings are suitably equipped to support children and young people with SEND and local authorities are empowered to plan places effectively. As part of this, the funding should continue to support local authorities to move towards greater financial sustainability, by controlling home to school travel costs and reducing pressures on high needs revenue budgets.

Our ambitions for a more inclusive system sit alongside our commitment to ensuring that special schools continue to play their crucial role in supporting pupils with the most complex needs.

Local SEND reform plans

In February 2026, the government published the Schools White Paper, setting out the government’s reforms to the current SEND system, building on ongoing work to create a system that’s rooted in inclusion, where every child and young person receives high-quality support early on and can thrive in their local early years setting, school or college.

To support delivery of the SEND reforms, DfE is commissioning each local area partnership to develop and submit a local SEND reform plan in June 2026, underpinned by a local partnership maturity assessment. These documents should be used to clearly set out how local authorities will improve and further strengthen their system, tilting provision towards stronger inclusive practice and early intervention, and ensuring that the conditions underpinning effective long-term outcomes are in place.

As part of the plans, local authorities are expected to set out how high needs capital funding will be used to invest in new places and adaptations to the physical environment so that needs of children and young people with SEND are met in alignment with the reform aims of mainstream inclusion.

Throughout this process, DfE officials, health regional leads, SEND and financial advisers will support local area colleagues with access to tailored guidance and emerging insights to help shape and strengthen their plans. The Local Government Association (LGA) will also provide additional system leadership and transformation support through the children’s and SEND improvement advisers.

Local areas are expected to submit the first iteration of their local SEND reform plan to the DfE and NHS England by 19 June 2026. The evidence in these plans will be used to ensure local authorities are working towards the outcomes detailed in the memorandum of understanding.

Memorandum of understanding

The high needs provision capital allocation 2026 to 2027 memorandum of understanding (MOU) outlines the agreement between DfE and local authorities regarding their HNPCA spend. The agreement sets out that local authorities should spend their HNPCA to support inclusion by increasing capacity in mainstream settings. This will be achieved through a significant expansion of inclusion bases to provide specialist places in mainstream, and by improving and adapting the physical environment in mainstream settings to ensure places are suitable to meet need.

As per the terms of the MOU, local authorities will be asked to demonstrate in their local SEND reform plan how their strategy for high needs capital investment will support the following outcomes:

• inclusion at the core of high needs sufficiency strategy, resulting in more children and young people with SEND accessing suitable places in mainstream (across all phases, including early years and post-16)
• every child or young person who needs a place in an inclusion base can access one
• fewer children and young people with SEND needing to travel a long way to access a suitable placement
• improved suitability of the mainstream estate to support children and young people with SEND, with targeted adaptations made to improve inclusivity and accessibility of the physical environment
• sufficient special school and AP places for children and young people with the most complex needs, where these needs require a distinctive offer which only special or alternative provision settings can deliver

Local authorities who plan to use their allocation to increase special school or AP places will need to demonstrate in their local SEND reform plans an evidence-based rationale for why need cannot be met in mainstream settings.

Local authorities are expected to sign and return the MOU to capital.allocations@education.gov.uk by 29 May 2026. The availability of future funding will be informed by the evidence provided on progress toward these outcomes.

Funding for special free schools

As announced in December 2025, some local authorities will be receiving separate funding in place of a previously planned special or alternative provision (AP) free schools. This funding is designed to be used flexibly by the local authority to deliver the same number of places as the planned school in an alternative way.

As this funding is separate from the HNPCA, the conditions set out in the MOU do not apply. The conditions of grant for this funding are set out in the special and alternative provision free school place grant determination. However, while local authorities can use this funding to create special school and AP places, we expect local authorities to use this funding to create new places and make adaptations to the physical environment within mainstream settings. Funding will be issued to local authorities in two instalments, summer in 2026 and summer in 2027.

We have written to local authorities in scope to confirm their position and, where relevant, the funding they will receive.

Suggested types of work

In this context, and as per the terms of the HNPCA 2026 to 2027 MOU, we strongly recommend that local authorities use their capital allocations to invest in their mainstream provision from early years through to post-16.

In particular, we anticipate that local authorities may wish to invest in:

• creating specialist provision within mainstream schools and settings, including inclusion bases
• adaptations and improvements to the mainstream environment
• special school expansions (where appropriate)

Inclusion bases

Inclusion bases have an important role to play in a more inclusive mainstream system, enabling children to achieve and thrive in a mainstream school. They provide tailored and expert teaching and support for specific groups of children, such as those with complex SEND or those at high risk of exclusion or low attendance, as well as cascading their specialist expertise more widely

We are aware of many examples of inclusion bases in mainstream settings that offer high quality teaching, bespoke learning environments and flexible access to specialist education or health support, helping children thrive academically, socially, and emotionally. An expansion of inclusion bases will allow children with more complex needs to receive the specialist support they need whilst remaining in their local communities, close to their families and friends and reducing often lengthy and expensive travel journeys to get their educational needs met.

The department has set out an ambition that, in time, every secondary school in England will have an inclusion base, alongside thousands of places in primary schools. We expect schools and local authorities to work together to prioritise the creation of inclusion bases to deliver on this ambition. This could include creating inclusion bases in mainstream primary or secondary schools or academies (including free schools, faith schools and grammar schools), and sixth form or FE colleges. Creating inclusion bases could involve building a bespoke provision or re-purposing and adapting existing space to ensure it is fit for purpose.

As set out in the SEND consultation, inclusion bases encompass:

• specialist bases (commissioned and funded by the local authority)
• support bases (commissioned and funded by individual settings and multi academy trusts)

Local authorities can use their capital allocations for both types of base. Local authorities should work with schools and local partners to strengthen the strategic planning of both types of bases to meet the needs of children and young people with SEN or disabilities across the local area.

In setting up or expanding existing specialist bases, local authorities should ensure they have appropriate regard to our statutory guidance on making significant changes to maintained schools, or if working with an Academy Trust to our equivalent guidance on making significant changes to an open academy.

Mainstream adaptations and improvements

We know that inclusive education estates can have a significant positive impact on wellbeing and engagement for children and young people with SEND. This could range from enhanced acoustics and lighting to accessible changing facilities and outdoor learning spaces.

Many local authorities are already enhancing the inclusivity and accessibility of their mainstream settings through improvements and adaptations, demonstrating a commitment to creating inclusive environments that are suitable to meet a wider range of needs. All pupils can benefit from these interventions to learn in a calm and focussed environment, and this is especially true for pupils with SEND.

Physical environment

We want local authorities to build on existing good practice across the system to invest in adapting and improving the suitability of school buildings.

For further information about accessibility and inclusivity of buildings, local authorities should refer to the published standards and guidance for the design and construction of school and college buildings and outdoor environments, which includes Building Bulletins for acoustics (BB93), ventilation (BB101), and space (BB103, BB104), and how these can be designed to optimise inclusivity and accessibility. Please also refer to PAS 6463:2022 Design for the mind: Neurodiversity and the built environment for further advice.

We will also be publishing guidance on adaptations to enhance inclusivity and accessibility in mainstream settings, to more targeted guidance on identifying suitable interventions across the mainstream settings in your area, at high value for money. A link to this guidance will be added once published.

Assistive technology

Evidence suggests that digital assistive technology (AT), such as screen readers and communication devices, can be a valuable tool to support the inclusion of children and young people with SEND, when used effectively.^{[footnote 2]} With this in mind, local authorities may wish to consider investment in assistive technology interventions as a means of supporting pupils in mainstream. This would complement existing capital initiatives to widen the effective use of assistive technology for children and young people with SEND in mainstream settings, including:

• assistive technology lending libraries - where areas are piloting lending libraries through the change programme, they may choose to use their capital grant to supplement, refresh, or renew their stock of products
• improving Wi-Fi connectivity – the connect the classroom programme has reached almost 1.5 million pupils, working in partnership with over 3,700 schools to fund safe, secure, and high-speed wireless networks, it provides the foundation for assistive technology to function effectively across the whole school site

Places in special schools or alternative provision                       

Special schools and AP have a vital role to play in the system when it comes to supporting children with the most complex needs. We recognise the current pressures on the system and understand that local authorities will continue using funding to deliver special school places in discrete circumstances. For example, where there is need in the area that cannot viably be met in specialist bases (for example, profound and multiple learning difficulties (PMLD)), or evidenced cold spots in specialist provision.

When returning local SEND reform plans, local authorities should ensure that any plans to increase special school capacity are accompanied by a clear rationale as to why need cannot be met in other setting types.

Where it is deemed necessary to expand existing provision in special or AP schools, local authorities should ensure they have appropriate regard to our statutory guidance on making significant changes to maintained schools, or if working with an academy trust, to our equivalent guidance on making significant changes to an open academy. We expect local authorities to be creating new (additional) places at good or outstanding schools and colleges and to notify the department where this is not possible, and to do so at existing school sites (not satellite provision) wherever possible.

This applies to all special and AP schools, including:

• special schools (whether maintained or academy, including special free schools)
• non-maintained special schools (NMSS)
• special post-16 institutions
• pupil referral units (PRUs)
• alternative provision academies and free schools

Strategic planning and procurement

HNPCA is not directly intended to address other capital needs, such as maintenance or condition work, core mainstream provision (covered by basic need allocations) or new early years or post-16 provision except where this would increase or improve SEND provision within those settings. However, in planning capital projects, we expect that local authorities will think strategically and consider economies of scale or efficiencies that may be achieved. For example, combining condition works and expansion schemes, including as part of decisions taken in concert with other responsible bodies around use of the CIF, school conditional allocation (SCA), and the school rebuilding programme (where the department will be happy to discuss the potential for synergies with those local authorities involved).

In February 2026, DfE published the education estates strategy: a 10-year plan for the education estate setting out the ambition to adapt the education estate to make it more inclusive and accessible through the expansion of inclusion bases and adaptations to improve accessibility and inclusivity in mainstream settings. We know these interventions can have a positive impact on attendance, behaviour and wellbeing, especially for pupils with SEND, in some cases, enabling them to attend their local mainstream school by ensuring the environment is suitable to meet need.

Local authorities should also consider how they can secure wider social, economic and environmental benefits when commissioning public services or projects. Before they start the procurement process, local authorities should think about whether the works and services they are going to buy, or the way they are going to buy them, could secure such benefits for their area or stakeholders. In addition to local social value priorities, local authorities should consider the themes and policy outcomes in the social value model.

Developer contributions are also an important way of helping to meet demand for new school places when future housing developments are contributing to increasing pupil numbers. The local planning authority (LPA) secures developer contributions through section 106 agreements or the community infrastructure levy (CIL) and decides what local infrastructure these contributions should support. We would encourage LPAs to negotiate significant contributions for new school places (including specialist provision) and work closely with colleagues planning school places in their area, including county councils when the local authority responsible for education is not the LPA. LPAs can approach DfE for support on:

• assessing local school infrastructure needs
• calculating costs of school provision
• negotiations with developers

There is guidance for local authorities on securing developer contributions for education.

There are also specific conditions of grant attached to the HNPCA obligating local authorities to ensure any funding paid out under this grant is spent efficiently. The department expects local authorities to conduct a robust evaluation of procurement options for any education capital projects and, in doing so, to consider the use of both DfE’s Construction Framework and its modern methods of construction framework where these are likely to deliver overall savings and advantages. A local authority should encourage academy trusts and other responsible bodies to do the same, should they be procuring a construction project directly.

Local authorities should also consider how to invest both revenue and capital funding strategically to maximise the benefit of both in their local context. The Children and Families Act 2014 also requires local authorities to keep their strategic plans for special educational provision under review, so local authorities should therefore consider how to best invest their HNPCA to improve their local offer. All local authorities are expected to develop a local SEND reform plan to aid their strategic planning.

DfE is committed to supporting the government’s targets on climate change, including achieving net zero carbon emissions by 2050 target, as set out in the Climate Change Act 2008. To help local authorities achieve the sustainability and design standards required to achieve net zero, HNPCA includes an uplift to support local authorities with the additional costs associated with net zero construction.

We strongly encourage local authorities, in developing their local capital plans to refer to the department’s guidance on design and construction standards which set good quality parameters on wide range of building requirements (published at school and college design and construction), including:

• acoustics
• space
• fire
• thermal comfort
• ventilation
• energy
• tackling climate change
• improving access to nature

Funding should help with delivering school capital projects to meet sustainability standards, including buildings that are net zero carbon in operation and with additional climate resilience measures.

Regardless of local authorities’ chosen delivery route, when planning for the use of HNPCA, local authorities should ensure they are considering environmental sustainability, carbon reduction and energy efficiency, to develop solutions for projects that are in line with wider government targets and objectives.

Local consultation

In line with their statutory responsibilities, we expect local authorities to consult in an appropriate and proportionate manner with local parents, carers, young people, and providers when developing their local capital strategy for HNPCA. Effective engagement with parents and carers is crucial in building and implementing a strategy that develops support for local changes. This will help local authorities ensure that services will meet the needs of children and families. They should also consider how they can collaborate with other local authorities to form partnerships to work effectively across local borders.

When providing detail of their capital spending plans through their grant assurance data returns, local authorities should also set out the details of any relevant consultation or engagement with local stakeholders they have undertaken in developing their capital proposals.

Payments and assurance arrangements

We expect funding for the financial year 2026 to 2027 to be paid in summer 2026. Local authorities will be required to verify this funding has been spent on capital projects through the section 151 officer’s return for the relevant year.

As with previous HNPCA funding, we are also asking local authorities to complete and return a grant assurance data return at an appropriate interval, to provide details on the projects they intend to fund using their HNPCA. The assurance template will be shared with local authorities in the summer. To capture the full impact of this funding, local authorities should endeavour to include in their returns any projects receiving funding from 2026 to 2027. In addition, if projects benefitting from  HNPCA funding between 2021 to 2022 to 2025 to 2026 have yet to be completed by the time of the data return, local authorities should also include these projects as well.

Local authorities should return their completed templates to the department by Thursday 1 October 2026 by emailing the completed template to capital.allocations@education.gov.uk.

We expect local authorities to complete both the local SEND reform plan and the HNPCA assurance data return.

Local authorities are not required to publish these returns on their websites, but we would strongly encourage them to consider doing so to aid local transparency.

We recognise that not all HNPCA funding may be committed by the Thursday 1 October 2026, and therefore the template will include space for local authorities to record funding that is not currently committed to a project. We would however encourage all local authorities to complete the data return template to the best of their ability as this provides valuable data to the department as to the needs and the priorities of the sector in respect of high needs capital funding, which will help inform future policy development.

If certain information might be considered locally or commercially sensitive (for example, detailed costings for projects still in procurement or naming specific institutions where this might pre-empt local consultation), local authorities should consider whether they can instead provide indicative figures or generic information (such as a plan to create a new inclusion base in an unidentified local secondary, pending conclusion of local consultation). If local authorities have any queries or concerns about the information requested, they can contact us at capital.allocations@education.gov.uk for further information or guidance.

In due course, we will also ask local authorities to provide details on their final expenditure of 2026 to 2027 HNPCA through the Capital Spend Survey (CSS).

Timeline

The timeline local authorities can expect:

• they will receive payment for their 2026 to 2027 HNPCA grant in summer 2026
• they should complete their assurance data return template and return to capital.allocations@education.gov.uk by 1 October 2026

If you any queries relating to this guidance, or any other aspect of high needs provision capital allocations, please contact capital.allocations@education.gov.uk.

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1. The SEND consultation document sets out the government’s intention to replace the current terms SEN unit, resourced provision, and pupil support unit (sometimes referred to by settings as ‘internal alternative provision’) with the term inclusion bases, underpinned by two models specialist bases (commissioned and funded by local authorities) and support bases (commissioned and funded by individual settings or multi academy trusts). This document uses the new terminology. ↩

2. Identifying and supporting children and young people with sensory and/or physical needs: a rapid evidence review; Rapid literature review on assistive technology in education ↩