Progress on tackling a backlog of plans for children with special educational needs has been dubbed a “no-win situation” after it pushed up Devon’s costs by more than £5 million.

The county has been battling a mounting number of so-called education, health and care plans, known as EHCPs, a legal document that outlines what support children with additional needs require to meet their educational goals.

Reducing the number of outstanding EHCPs in its special educational needs and disabilities (SEND) department is a key requirement linked to the £95 million bailout it got from the government’s safety valve scheme.

But its positive progress means it is now spending £5.5 million more in this area than it was at the start of the financial year because it is now having to spend cash on meeting the requests of the new EHCPs it agrees.

Councillors heard that the authority issued 161 plans in September compared to 98 in May, but demand remains exceptionally high.

The council’s cabinet meeting heard that the overall number of young people with an EHCP in Devon grew to 9,506 in September, an increase of 764 on the previous year.

It is forecast to hit 9,712 in January, around 340 higher than had been estimated by the council and the Department for Education when the safety valve agreement was struck.

Another issue is inflation, which is increasing the cost of an EHCP plan once activated. Devon said the average cost of an EHCP has risen by £666 due to inflation and the complexity of placements it is dealing with.

“With the clearing of our backlog, ironically, we are in a no-win situation,” said Phill Adams, assistant director for SEND improvement said.

“We are making massive progress, with the team reducing the number of outstanding EHCPs by 100 a month, which is 10 per cent up on where we thought we would be.

“Every time we clear a plan, it is costing us. The problem is this presents us with a terrible choice; we could slow down and do fewer plans, but then that would let young people and their families down, but if we speed up, it costs us more every time a plan is agreed.”

Angie Sinclair, the director of finance and public value, said Devon was hoping to receive an additional £7 million in funding for SEND as a result of comments by chancellor Rachel Reeves in her Budget.

Ms Reeves pledged £1 billion in extra spending for SEND nationally as part of an increase in spending on education.

The cabinet heard that the council’s schools funding pot was predicted to overspend by £14.7 million by the end of the financial year in April.

And that of the £15.4 million in cost reductions the council needs to achieve in line with its safety valve agreement, £11 million worth are currently expected to be secured.

Excluding schools funding, Devon County Council as a whole is expecting to overspend by £4 million this financial year – but that is below the £6 million overspend that two months ago it predicted it would have by April.