Three families had claimed during a June High Court challenge that government budget decisions were leaving local authorities across the country unable to provide education to children with SEND.
However, campaigners learned yesterday that the judge in the case found that the government had not acted unlawfully.
Despite the government's recent announcement of £700m in high needs funding for the coming year, the National Education Union warned that a £1bn shortfall remains.
Last week, the Local Government and Social Care Ombudsman warned the SEND system was in "crisis" amid a 45 per cent rise in complaints, and last month the government announced a major review of the system.
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