Two hundred thousand children across the UK rely on Special Educational Needs and Disabilities (SEND) transport services in the UK. Getting to school is not just a journey, it’s a lifeline. These services, provided by trained drivers and passenger assistants, are a cornerstone of stability and support for some of the most vulnerable children in our society. This critical service is now threatened by the upcoming changes in Employer National Insurance (NIC) contributions. In her autumn budget, the Chancellor of the Exchequer, Rachel Reeves MP, announced changes set to take effect in April 2025. These changes include lowering the salary threshold for employer NICs from £9,100 to £5,000 and increasing the contribution rate from 13.8% to 15%. While intended to raise much needed tax revenue, these measures will have devastating consequences for the SEND transport industry, which employs approximately 100,000 people. Many providers, focused on quality and safety, employ drivers and passenger assistants directly. With most staff working part-time, the NIC changes will significantly raise employment costs.
For many providers, this may render existing contracts with local authorities unviable, forcing them to terminate services. The result? Thousands of children potentially left without transport, parents unable to work, schools overwhelmed, and a ripple effect of disruption across local authorities and communities. Local authorities, legally obligated to provide SEND transport, could be forced to re-tender thousands of contracts, a costly and time-consuming process. With many providers exiting the market, authorities may have to pay significantly higher rates to secure new services. This could ultimately result in increased demands on central government, nullifying any financial gains for the public purse from the NIC changes.
Mitigating the impact
Compensation schemes are already being considered for public sector workers to offset the NIC increases. Extending these schemes to include drivers and passenger assistants employed in SEND transport would protect the consistency and quality of services, prevent unnecessary costs for local authorities and schools, provide job security for 100,000 trained staff, many of whom are over 50 and may otherwise become economically inactive, and all at no additional burden on the public purse, as the funds collected through NIC increases would otherwise be spent mitigating the fallout.
A Call to Action
SEND transport is not a luxury, it’s a necessity. For these children, it’s the key to accessing education, learning life skills, and building a brighter future. For their families, it’s a vital support system. Policymakers should act now to include SEND transport staff in the compensation schemes. This simple step will safeguard a critical service, protect vulnerable children, and ensure that the government’s budgetary measures do not come at the expense of those who need support the most. Please email your MP to share your concerns.