Lib Dem MP for Mid Sussex calls for profit cap on “profiteering” private SEND providers

Private equity-backed companies are raking in millions from Special Educational Needs and Disabilities (SEND) provision while local councils teeter on the edge of financial collapse, new research reveals.

Data commissioned by the Liberal Democrats and compiled by the House of Commons Library has found that some of the largest private providers of SEND education are making profit margins of over 20%. This comes as councils across the country – including in West Sussex – struggle to meet the skyrocketing costs of supporting young people with additional needs.

Home-to-school transport for SEND students alone cost a staggering £1.42 billion nationwide between 2023 and 2024. With demand for support growing and local budgets stretched thin, many councils face the prospect of cutting essential services or even bankruptcy.

Liberal Democrat MP for Mid Sussex, Alison Bennett, has hit out at what she describes as the “exploitation” of the SEND crisis by companies prioritising profits over pupils.

“It’s completely wrong that some private SEND providers are making huge profits while the system itself is struggling – and children are paying the price every day,” said Alison. “SEND provision is a huge concern for many families in Mid Sussex, and it’s deeply worrying to see private equity firms putting profits before children’s needs.”

According to the latest government data, 9,301 children in West Sussex currently have an Education, Health and Care Plan (EHCP), reflecting a growing local demand for support.

The Liberal Democrats are now calling on the Government to introduce an 8% profit cap on private SEND providers, some of which are backed by firms based in tax havens or foreign sovereign wealth funds. They argue that curbing excess profits would help redirect vital funds back into frontline services.

“This kind of grotesque profiteering is a big part of what’s driving the crisis in SEND,” added Alison. “The Government must act now – and put a cap on profits at 8%, so that more of this money goes back into the system where it belongs, helping children, not shareholders. We need to prioritise support over profit. Our young people deserve so much better.”

As pressures mount on council finances and more families speak out about delays and gaps in provision, the debate over how to fund and manage SEND support fairly and sustainably is only set to intensify.