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Gloucestershire Business News

MP calls for profit cap on 'profiteering' private SEND providers

Cameron Thomas, the Liberal Democrat MP for Tewkesbury, has criticised "profiteering" by many private special educational needs providers, as the party calls for a cap on their profits to end the scandal.

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%.

Across Gloucestershire, they say school budgets have been stretched to breaking point - there is simply nothing left to cut - as headteachers and teaching staff are under immense pressure.

Cameron Thomas said: "As the Member of Parliament for Tewkesbury, my focus is on supporting all pupils and ensuring access to high-quality education."

"Schools in my constituency are under growing strain, and it is deeply concerning that private companies continue to profit from what has become a national crisis in education.

"One of the most pressing and consistent concerns raised in constituency surgeries comes from parents of children with special educational needs and disabilities (SEND). These families deserve better - and so do the schools that support them."

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.

Council finances are being pushed to the brink, with many facing bankruptcy or having to reduce or end service provision for vulnerable groups.

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 curb excessive profiteering off the backs of disabled children.

Mr Thomas has criticised these companies for "exploiting" the crisis in the SEND system, and has echoed their party's calls to introduce an 8% cap on their profits.

According to the latest government data, 6,412 children in Gloucestershire currently have an ECHP.

Mr Thomas added: "It is totally unacceptable that top private SEND providers are lining their pockets exploiting a SEND system in crisis, while children are being failed every day.

"SEND provision is a key issue for many parents across the Tewkesbury constituency, so I am deeply concerned to see this greedy profiteering from private equity firms. It is a major driver of the crisis in our SEND system.

"The Government needs to cap the profits of these firms at 8%, to ensure that money is channelled back into the SEND system, and not into the pockets of shareholders. It's time to put provision over profits. Our young people deserve so much better."

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