The money can be used by councils in early years settings, mainstream schools, including academies and free schools, as well as special units and special schools, and further education colleges.
The DfE said it would be up to local authorities as to how they use the money and said it could help create 740 more special school places, and provide new specialist facilities to support children with complex needs, such as playgrounds with specialist equipment or sensory rooms.
Other suggestions include building new specialised classrooms, expanding existing classrooms for children using mobility aids, purchasing mobility equipment, and creating storage facilities for wheelchairs.
Local authorities will have to submit their plans to the DfE for approval.
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