The joint inspection team, from Ofsted and health watchdog the Care Quality Commission, found that council and health services are failing to offer children and their families their legal entitlement of support.
They found that leaders at North Somerset Council and the area's clinical commissioning group do not have a SEND strategy in place to improve support.
Health and council chiefs have also failed to meet the statutory deadline of April this year to convert SEND statements to education, health and care (EHC) plans, inspectors found following their visit in May.
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