The clause, which refers to 16 to 19 education and training provision, states that local authorities should not commission services that "give rise to disproportionate expenditure".
Special educational needs (SEN) charities have warned this could lead to wide variations in services, because the definition of disproportionate cost is open to interpretation.
Matthew Dodd, policy officer at the consortium, said the phrase should be removed from the bill.
He said: "These clauses have the potential to provide a get-out for poor performing local authorities to avoid meeting their duties towards learners with more complex needs."
Local authorities are already required by law to use public funds efficiently, so the clause is redundant, he said.
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