The most common and most likely answer to this crossword clue is the 12 letter word STATEMENTING
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Buddy explains!
The straight part
We know that "it indicates special needs" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case it indicates special needs = statementing.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does STATEMENTING mean?
STATEMENTING noun- Formal official assessment of a child as having special needs.
- To provide an official document of a proposition, especially in the UK a Statement of Special Educational Needs.