The Local Authority (LA) has a power (not an obligation) to arrange for special educational provision for a child or young person with SEND to be made otherwise than at a school or institution only where education in a school or institution would be inappropriate.
s.61 CFA 2014

Whether or not it is appropriate will depend upon the individual facts of the case. The LA will consider:

• the child/young person’s background and medical history
• the particular special educational needs of the child
• facilities that can be provided by a school/institution and otherwise than at a school/institution
• the comparative costs of alternative provisions
• child’s reaction to education provisions, either at a school or elsewhere;
• parents’ wishes; and
• any other particular circumstances that might apply.

(TM v London Borough of Hounslow [2009] EWCA Civ859)