An analysis published recently by the UK’s Liberal Democrats found shocking annual deficits of SEND services. This compelling new data only underscores the need for real reform in these important areas. Our research indicates that SEND businesses brought in a remarkable £200 million in turnover. On the other hand, their profits have increased 150% since 2022! This is deeply alarming, given that many local councils are already facing severe funding pressures.
Yet, one borough council spectacularly wasted the equivalent of 40% of its entire annual budget – a staggering £6.64 million of taxpayer’s cash last year. This money went to a private SEND provider. Alarmingly, this provider’s owners boasted profits of £44 million. That latter possibility, at least, provoked an uncharacteristically emotional response from Munira Wilson, the party’s education spokesperson. She contended that these profits are being collected “on the backs of disabled kids.”
Across the country local authorities have pooled £1.42 billion so far into SEND schools & providers This landmark number has begun to turn the heads of everyone, including Olly Glover, the recently elected MP for Didcot and Wantage. Commenting on local authorities’ vast spending on SEND providers, Glover said he was concerned. He dubbed it “a tremendous alarm bell.” He, in particular, stressed the importance of balance. Companies should be able to make profits, but we need to do a better job of scrutinizing how those profits are derived.
The SEND National Crisis campaign is calling SEND company profit caps of 8%. With this action, the Administration intends to act against shameless profiteering in a field that’s central to the mission of protecting vulnerable children. Wilson reiterated the need for immediate scrutiny over the fiscal practices of these corporations. The GLA are clearly thriving – in stark contrast to the extreme budgetary pressures being imposed on English local councils.
In light of these revelations, a spokesperson for the Department for Education remarked that the system “has been failing families of children with SEND for far too long.” They further criticized the situation, stating, “It’s appalling that some companies are capitalising on this crisis.”
Glover reiterated the frustrations of his constituents, stating, “More and more of my constituents are frustrated that they see council tax bills going up.” He underscored the fact that this often drives local investments. In the meantime, essential services – including the maintenance of the roads they want to fix instead – take a hit.
The fiscal picture for SEND services is getting increasingly alarmist. In turn, the arguments about profit margins versus service quality will only heat up. Stakeholders will need to navigate these complex issues to ensure that vulnerable children receive the support they deserve without burdening local taxpayers further.
