The EA said its projected funding shortfall was in the region of £300m and that "renegotiating payments to taxi operators" was one of the savings measures it announced last month in an attempt to address the shortfall.
More than 4,600 Special Educational Needs children use a taxi to get to and from school and many schools are far away from their homes, contributes to the cost of transport.
There are not enough special schools, so some children have to travel far and this does come at a cost.
A taxi driver, Mr Scott, said he felt "let down" by the letter from the EA. "That bond that taxi drivers had with the EA where we signed a contract and we thought we were going to service that contract for the foreseeable future, that is now broken," he said.
"Given these kids have SEN, to get them used to another taxi driver, a new car, takes a long number of weeks. This is not done overnight."
The EA letter gave taxi operators until 17 December to "voluntarily agree" to reduce their invoiced rates by 10% or the EA "will be minded to consider alternative arrangements for pupils' transport which may include using a break clause to terminate the contract(s) and re-tendering the run(s)".
https://www.bbc.com/news/articles/cp84je1n5kgo.amp
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