And the Liberal Democrats (Lib Dems) want to go further by introducing a profit cap for companies operating within the Special Educational Needs and Disabilities (SEND) sector. They focus on several examples where firms are profiting massively, sometimes to the tune of billions. The proposal responds to inflammatory profit margins and yearly earnings that leave disabled children in the lurch. This unparalleled situation has led to urgent and unprecedented calls for change in the ways that educational services are provided.
Yet new investigations have revealed that many private companies raking in tens of millions of pounds each year by supplying SEND services. One of these providers alone made an astonishing £44 million in profits. Considering its annual turnover is £208 million, that is quite exceptional given it’s more than 20% profit margin. The other one made a £20.9 million profit on £194.2 million turnover, a profit margin of 10.8%. One provider’s profit doubled in under two years. This extraordinary boom begs the question of whether their business model is sustainable or even ethical.
Given the extraordinary returns, the Lib Dems are calling for a temporary 8% profit cap. Munira Wilson, the party’s education spokesperson, attacks the current system with breathtaking ferocity. Retrofitted as the healthcare-disrupting new unicorn, she contends that’s come at the expense of care and education outcomes, with profiting “off the backs of disabled children. The party contends that firms exceeding the proposed margin could face sanctions, which might include returning excess profits to local authorities.
“Children with special educational needs deserve the best possible support and should not be viewed as cash cows for vulture firms,” Wilson stated. This sentiment echoes the increasing worry and urgency over the quality of education and care that these aggressive and insecure kids are being raised in.
The Lib Dems support the expansion of state-owned specialist school provision and assistance for local authorities to build their own schools. At present, there are 66 new special free schools in the pipeline. Alongside this, government has promised an additional £740 million to help pupils with special educational needs and disabilities (SEND). Taken together, these moves will be valuable steps toward providing a better educational environment for the nation’s special needs children. They will, finally, end reliance on private companies that put profit above service.
A spokesperson from the Department for Education acknowledged the ongoing issues within the SEND system, stating, “The system we’ve inherited has been failing families of children with SEND for far too long, and it’s appalling that some companies are capitalising on this crisis.” What they asserted was that we need to stop letting unscrupulous educational institutions prioritize lining the pockets of shareholders and executives over the results for our children.
