Lib Dem MP for Wimbledon calls for profit cap on "profiteering" private SEND providers

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.

Merton spends approximately £20m annually paying the school fees charged by private educational needs providers which is pushing the council's finances to the brink.

Liberal Democrats are calling 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.

Paul Kohler, MP for Wimbledon, 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. 

2,730 children in Merton currently have an ECHP, according to the latest government data available. 

 Paul Kohler, Liberal Democrat MP for Wimbledon, said: 

"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 Wimbledon, 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."