Education costs for looked-after children placed out of area
Updated Department for Education guidance explains revised inter-authority recoupment arrangements for certain looked-after children educated in another local authority area. For homes, the practical issue remains timely, accurate coordination around the child’s education.

What changed
The guidance, updated on 14 October 2026, covers looked-after children placed in residential social care outside their home authority who have an EHC plan or attend a special school. The revised arrangements apply from 1 September 2026 and clarify how education costs are recouped between local authorities.
What this does not change
Funding discussions must not delay a child’s access to suitable education. The guidance is directed primarily at local authorities, including children’s services finance and SEND teams, rather than creating a new administrative duty for residential practitioners.
Where residential records help
Homes can support clear coordination by keeping current education placement details, attendance, transport arrangements, professional contacts, EHC information where applicable, meetings and agreed actions together. The original source and professional responsibility should remain clear.
The funding route may sit elsewhere. The child’s education experience still needs one coherent record.
Questions for services
Can staff identify the responsible professionals quickly? Are changes in provision, transport failures and missed education recorded with their reasons and follow-up? Can managers see unresolved actions without reconstructing the story from separate emails?
