Parents to control special needs budgets.

Parents are to be given more financial control over support for children with special educational needs, in a major shake-up of the system in England. The government says it wants to push ahead with proposals announced last year that parents should have a "personal budget" for their children. The changes could also see fewer children in the special needs category.

Children's minister Sarah Teather said the current system was "outdated and not fit for purpose". The government is setting out its response to last year's green paper on special educational needs - which warned that too many parents felt frustrated with having to "battle" against the system.

It also said that too many children were being labelled as having special needs - with more than one in five pupils currently in this category. It called for parents to be given more control over spending the budgets available to help their children.

There will also be a push for more co-ordinated commissioning of support between education, health and other services, to reduce the risk of delays or bureaucracy. The intention is to remove the sense of a struggle between families and support agencies over assessments and the support available. A major change will be the scrapping of the current system of statements setting out the extra help that has to be provided for children with severe or multiple learning needs or disabilities.

A simpler system is promised with the introduction of a single assessment process, for all levels of special need, which would result in an integrated Education, Health and Care Plan. But children who have statements are only a small proportion of children classified as having special needs. And the green paper suggested that "too many children are being over-identified" as having a special need, with this label being applied to a very wide variety of problems.

A report from Ofsted in 2010 claimed that the special needs category was being used too widely. Teachers' unions strongly rejected the claim and warned of cuts to support services for special needs. Within the school population, 2.7% of children have statements - representing those with the greatest physical or mental health needs. But almost 18% of children are categorised in two lower levels of special need - School Action and School Action Plus - representing about 1.4 million pupils.

This includes difficulties such as persistent emotional, social and behavioural problems, communication difficulties or a sustained inability to make progress. The proportion of children identified as having special needs, outside of those with statements, has risen sharply - up by 80% since the mid-1990s. The green paper identified the rise in some specific areas - behavioural and emotional difficulties rising by almost a quarter in five years. Speech and communication problems had risen as a special needs problem by 58% over the same period between 2005 and 2010.

The children's minister said the changes would help remove the delays and confusions facing families who need help for their children. "Thousands of families have had to battle for months, even years, with different agencies to get the specialist care their children need," said Ms Teather. "It is unacceptable they are forced to go from pillar to post, facing agonising delays and bureaucracy to get support, therapy and equipment. These reforms will put parents in charge. We trust parents to do the right thing for their own child because they know what is best. The right to a personal budget will give them real choice and control of care, instead of councils and health services dictating how they get support."

The proposals will be included in a Children and Families Bill announced in the Queen's Speech.