The system supporting children and young people with Additional Learning Needs (ALN) in Wales is facing significant pressures, according to a new report from Audit Wales.

The review highlights concerns over planning, budgeting, and the ability of public bodies to deliver effective support under the Additional Learning Needs and Education Tribunal (Wales) Act 2018.

Audit Wales examined whether public bodies have a clear understanding of ALN demand, workforce capacity, skills, costs, and outcomes. Their findings show that authorities do not have a complete picture of these areas, limiting their ability to plan effectively, assess value for money, and ensure learners reach their full potential. Officials say this problem is not unique to Wales.

In 2024/25, 48,257 learners aged 0–25 were recorded as having ALN or Special Educational Needs (SEN). However, the report notes that this figure is incomplete. Between 2018/19 and 2024/25, data shows a 58 per cent reduction in the number of school learners recorded with ALN or SEN, though the reasons behind this fall are disputed. Over the same period, the number of learners with ALN receiving statutory support - through statements of SEN or Individual Development Plans (IDPs) - rose by 164 per cent.

The rising cost of supporting learners with ALN is placing additional pressure on wider education budgets. While Audit Wales could not determine a precise total, identified spending suggests annual costs are approaching £1 billion, with the true figure likely higher. Local authority budgeted expenditure on ALN or SEN rose by 34 per cent in real terms between 2018-19 and 2025-26.

Audit Wales says its conclusions are based on evidence showing that:

• the system does not have good enough data to understand the extent of growing demand and complexity;

• patchy workforce data limits the system’s understanding of a range of capacity and skills challenges;

• public bodies do not have a good enough understanding of ALN costs, and we have concerns about the system’s financial sustainability; and

• the goals of the ALN system are clear but there is only a limited picture of whether it is delivering good outcomes for learners and the system remains adversarial despite evidence of some improvement.

Audit Wales recommends that the Welsh Government act as an enabler of change at a national level, with involvement from a wide range of public bodies to implement improvements successfully. Proposed reforms under recent Welsh Government consultations are also expected to impact multiple agencies.

Auditor General Adrian Crompton said:“Children and young people with Additional Learning Needs include some of the most vulnerable people in society. There has been a significant amount of work involved in efforts to reform the system for the better over recent years. However, the system remains under strain and there is still a lot more that can be done to ensure it does as well as it can for our children and young people, both now and for future generations.”

The full report and other Audit Wales publications can be found at: www.audit.wales