Our report focuses on the system that supports children and young people with Additional Learning Needs (ALN) in Wales, in the context of changes brought about by the Additional Learning Needs and Education Tribunal (Wales) Act 2018 (the Act). We looked at whether public bodies understand ALN demand, workforce capacity and skills, costs, and outcomes. 

Our findings show that public bodies do not have a complete picture of these issues, so they do not have enough information for effective planning and budgeting, and with which to assess value for money. Ultimately, we have concerns about the current performance of the system in supporting learners to meet their full potential. This picture 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, our report explains how this is an incomplete picture. 

The available data shows a 58% reduction in the number of school learners recorded as having ALN or SEN between 2018/19 and 2024/25, the reasons for which are disputed. Over the same period the number of school learners with ALN having statutory support through a statement of SEN or now an Individual Development Plan (IDP) increased by 164%. 

The spending involved in supporting learners with ALN has been increasing, putting pressure on wider budgets. While we cannot put a firm figure on it, the sums that we can more easily identify suggest current annual spending approaching £1 billion. But this is not the full picture, and the true cost is likely to be higher. Councils’ budgeted expenditure on ALN or SEN increased by 34% in real terms between 2018-19 and 2025-26.

Our 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. 

Our recommendations focus on the Welsh Government and its role as an enabler of change at a national level. Nevertheless, a wide range of public bodies will need to be involved if our recommendations are to be implemented successfully. They do, therefore, have wider relevance. Proposals that the Welsh Government has consulted on recently will also impact other bodies.