Lib Dems set out plans to stop SEND services being 'cash cows'

The Liberal Democrats have called for Special Educational Needs and Disabilities (SEND) services in England to be designated as critical national infrastructure to stop vulnerable children being treated as "cash cows" by private investors.

Council spending on SEND - support for children who need extra help because of a disability or learning difficulty - has soared in recent years, while private companies have increasingly bought up schools and services.

The Lib Dems said their proposals would give the government more powers to scrutinise acquisitions of SEND providers and ensure deals are in the public interest.

The government is expected to set out its plans to reform the system next week.

It has already announced that there will be new national standards and price bands for independent providers.

The Department for Education said this would end fee variation and give councils the confidence to challenge poor value placements.

It has not set out the level of these bands but reports have suggested there could be a cap of £60,000 a year.

If schools do not comply with the bands they will not be able to take on state-funded pupils.

Ministers have also expressed a desire for more children to be supported within mainstream schools.

Independent special schools charge an average of £63,000 per child per year, more than twice the £26,000 cost of a state special school.

More than 30% of independent special schools are backed by private equity firms, according to the government.

Currently the status of critical national infrastructure is reserved for essential services like energy, transport and water.

Under the Lib Dem plans, SEND acquisitions would also be subject to public interest tests under the Enterprise Act.

This would give the government greater powers to oversee acquisitions and mergers, with the secretary of state able to intervene if a deal threatens the public interest.

Lib Dem leader Sir Ed Davey said: "No parent wants to see their child's education suffer while private equity firms cash in on a broken system.

"Liberal Democrats would introduce new protections to ensure taxpayers' money is spent on front-line services for children, not lining the pockets of offshore investors."

The Department for Education has been approached for comment.

Delayed government plans to overhaul the system could be unveiled as early as Monday, when MPs return to Parliament.

Leaked plans suggest that from 2029 children will have their right to support reassessed after primary school and when they move from secondary school to college.

As the government seeks to control rapidly rising costs, this will mean a smaller proportion of children will retain their legal entitlement to support.

The proposals could face a backlash from campaign groups who fear they could water down the legal rights of children.

The government has already agreed to clear £5bn worth of debts that councils have built up and take on responsibility for SEND spending from 2028.

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