Claire Young calls for cap on private SEND provider profits

Thornbury & Yate MP Claire Young has criticised the ‘unfair’ levels of profit being made by many private special educational needs providers and backed the Liberal Democrats calls for a cap on private providers profits.

House of Commons Library research, commissioned by the Liberal Democrats, has revealed that the top private equity companies providing SEND schooling have seen their annual profits increase as the SEND crisis has worsened, with some making margins of over 20%. 

The SEND crisis has led to many local authorities facing exorbitant costs for private provision, while further figures have revealed that home-to-school transport for SEND young people cost £1.42 billion between 2023 and 2024.

Liberal Democrats are pushing for private providers of special needs education – some of whom are backed by private equity companies based in tax havens or foreign sovereign wealth funds – to face profit caps of 8% to stop them making huge profits off the backs of disabled children.

3,236 children in South Gloucestershire currently have an ECHP, according to the latest government data. This has led Claire Young to warn that some companies are “exploiting” the crisis in the SEND system and making unfair levels of profit.

Commenting on the situation, Claire Young said:

“It is totally unacceptable that big private SEND providers are exploiting a SEND system in crisis.

“SEND provision is a key issue for many parents across Thornbury & Yate, so I am deeply concerned to see the level of public money being turned into profit for private equity firms. This is a major driver of the crisis in our SEND system and needs addressing.

“I know just how reliant local authorities are on these private providers to help our children get a proper education. However, it’s wrong that they make such large profits off the back of children who need additional support.

“The Government should cap the level of profit these firms can bank at 8%, to ensure more money is paid back into the SEND system and not simply into the pockets of shareholders. It's time to put provision over profits and give our young people a fair deal.”