The cap on SEND school profits has become a key political issue as the Liberal Democrats demand stricter limits. Private firms providing special educational needs (SEND) services reportedly make excessive profits, sometimes exceeding 20% margins. The party warns this diverts funds meant for vulnerable children into shareholder pockets.
Therefore, research commissioned by the Lib Dems reveals shocking financial gains by some SEND education firms. One company reportedly made £44 million in profit from £208 million in revenue. Another firm achieved a 10.8% profit margin, raising concerns about affordability and fairness.
Moreover, Munira Wilson, the Lib Dem education spokesperson, called the situation “an absolute scandal.” She accused private equity-backed providers of exploiting desperate families and cash-strapped councils.
Furthermore, the proposed cap on SEND school profits would limit earnings to 8%. Companies exceeding this threshold could face penalties, including refunding excess profits to local authorities. The policy mirrors existing plans to regulate profits in children’s residential care.
In addition, critics argue such a cap could reduce investment in SEND services. However, the Lib Dems insist it won’t harm competition. Instead, they propose expanding state-run specialist schools and accelerating the opening of 66 new free schools.
The Department for Education acknowledged systemic failures in SEND provision. A spokesperson said, “Some firms are capitalising on this crisis at children’s expense.” The government plans reforms to prioritize educational outcomes over corporate profits.
Last December, ministers allocated £740 million to improve SEND support. The funding aims to create more specialist places in mainstream schools. Yet campaigners say deeper structural changes are needed to prevent exploitation.
Parents and educators have long criticized the rising costs of SEND education. With record numbers of children needing support, the cap on SEND school profits could gain public support. Opposition parties may pressure the government to adopt stricter financial controls.
As debates intensify, the focus remains on ensuring fair access to education. The Lib Dems hope their proposal will force a rethink on how SEND services are funded—and who truly benefits.
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