Last Updated on July 10, 2025 by Karl Thompson
The UK is facing a growing special needs education crisis—a stark example of what happens when private profit meets public need. As journalist Ian Birrell reports in The i Paper, the surge in demand for Special Educational Needs (SEN) support is forcing local authorities to outsource provision to expensive private companies. The result? Sky-high fees, questionable education standards, and profits funnelled into the pockets of overseas investors—at the expense of some of the country’s most vulnerable children.
This is not just a funding issue—it’s a textbook case of neoliberalism in education, where privatisation transforms public services into private markets.
Sky-High Fees for Subpar Special Needs Education
Local councils are legally obligated to secure suitable placements for children with Education, Health and Care Plans (EHCPs). But decades of underfunding have decimated in-house provision. The vacuum is now filled by private special schools, many of which charge staggering fees.
Take Pontville School in Lancashire. As Birrell reports, it charges up to £116,611 per pupil per year—nearly double the annual cost of Eton. Yet despite these costs, Ofsted inspections revealed major concerns, including bullying and overuse of physical restraint.
Even more concerning, Pontville is owned by a firm linked to the Abu Dhabi sovereign wealth fund. British taxpayers are effectively subsidising foreign investors through the UK’s special needs budget.
📖 Related: Privatisation of Education and Neoliberalism
Neoliberalism and the Marketisation of SEN
The SEN crisis is part of a wider shift: the neoliberal restructuring of education. As Karl Thompson explains in his post on neoliberalism and education, public services are increasingly subjected to market logic—competition, choice, and profit.
In special education, this has created a profit-friendly ecosystem dominated by a handful of private equity-backed providers. A 2023 investigation by the Bureau of Investigative Journalism found that the top five private SEN providers made £300 million in profit over five years—with little transparency or regulation.
Many of these companies are loaded with debt, a strategy borrowed from the private equity playbook. It means public funds meant for children are used to pay off loans, not improve support.
Private Profit, Public Harm
This is about more than money—it’s about principles. The current model allows education providers to:
- Overcharge councils who have no choice but to accept the terms
- Under-deliver on quality with minimal oversight
- Extract profits via foreign ownership and opaque financial structures
It’s a system built for profit maximisation, not pupil wellbeing.
Even the Local Government Association has warned that councils face a £1.9 billion SEN funding gap by 2025. And without in-house alternatives, they’re trapped in a cycle of dependency on private firms.
🔗 Source: Local Government Association – “SEND funding shortfall rising”
We Need to Rebuild, Not Just Reform
Tinkering won’t fix this. We need a bold reimagining of special needs education, based on inclusion, care, and public accountability. That means:
- Rebuilding council-run SEN provision so local authorities aren’t at the mercy of the private sector
- Introducing price caps and performance standards for private providers
- Banning opaque ownership and demanding transparency in fees, outcomes, and profits
Ultimately, special needs education should not be an investment opportunity. It should be a lifeline for children who need extra support.
💡 Explore more: Sociology of Education – Revision Hub