This article, by Brahm Norwich of the Graduate School of Education, University of Exeter, sets the recent legislative changes in the special education system in England, the Children and Families Act (2014), in the context of wider changes in the school system, such as changes in curriculum-assessment, the governance of schools and inspection arrangements. It also sets out the recent legislative changes in terms of the recent history of the Labour period of government, with its adoption of market principles with social inclusion as key policy commitments. A case study of a secondary school is presented to illustrate some of these points. Despite the new legislative system being described as a radical approach involving aspiration and support for special educational needs, the article argues that proposed changes promise to be marginal and defined by policy commitments to markets and small government. Moreover, there are continuing and unresolved issues from the Labour Government period that are still to be fully addressed. Research is also presented on the distribution of pupils with Statements in secondary schools and the recent rising pattern of special school placement for the first time in 30 years.