A WOMAN who says her disabled grandson was left out in the cold by a reorganisation of special needs schools won a victory over the Department for Education yesterday.

Education Secretary David Blunkett will now have to reconsider her complaints of a "systemic failure" by Newcastle City Council to make adequate provision for special needs children.

Deputy High Court Judge Jack Beatson QC said Mr Blunkett had properly decided the way the council chose to perform its Education Act duties was "perfectly legal".

But he had misdirected himself as to the extent of his powers to investigate the adequacy of the council's actual provision for special needs children on the ground.

Judith Lloyd had written several letters complaining about, among other things, what she said was a failure by the council to address parental preferences. However, Mr Blunkett rejected her call for his department to investigate, saying it was down to the council to sort out the issues she raised.

The case took place against the background of bitter dissent to the council's reorganisation of Newcastle's special schools, which saw the city's ten dedicated special schools reduced to four.

Judge Beatson said there was particular concern that children with "moderate learning difficulties" would not be adequately provided for under the new regime.

The reorganisation plans were approved by Mr Blunkett in February 1998, and the judge said it was now too late to challenge either that decision or the reorganisation itself.

The Secretary of State will now have to reconsider the complaints in the light of the judge's ruling before deciding what action, if any, to take.

The Department of Education was ordered to pay the action's heavy legal costs.