Treat SEND as “essential infrastructure” to stop offshore investors profiting from vulnerable children.
Lib Dems Demand End to "Rigged Racket" as Private Equity Profits from SEND Soar
The Liberal Democrats have unveiled a radical plan to reclassify Special Educational Needs and Disabilities (SEND) provision as “essential national infrastructure,” aiming to block offshore investors from treating vulnerable children as “cash cows.”
The proposal, released ahead of the government’s upcoming SEND White Paper, seeks to grant the sector the same protected status as energy, water, and transport networks. By doing so, the party intends to trigger strict public interest tests under the Enterprise Act, giving the government the power to intervene in mergers or acquisitions that threaten the quality of children's education.
The Rise of the "Cash Cow" Model
Over the last decade, the SEND landscape has shifted dramatically. Liberal Democrat-commissioned FOI data reveals that local authority spending on private SEND provision has surged tenfold in some areas since 2015.
Large foreign investment funds have aggressively entered the market. The party highlighted two prominent examples of the trend:
Witherslack Group: Owned by a subsidiary of the Abu Dhabi sovereign wealth fund, it recorded an operating profit of £44.6 million between August 2024 and August 2025—a profit margin exceeding 20%.
Aspris Limited: Owned by Waterland Private Equity, the firm reported £22.9 million in profit for the year ending August 2024.
Critics argue that this influx of private capital prioritises investor returns over educational outcomes, leading to a lack of transparency and a drain on public finances.
A Call for Oversight
The Liberal Democrats argue that the current lack of regulation allows public money to be diverted into offshore profits rather than being reinvested into local classrooms. Under their proposed "Essential National Infrastructure" status, the Secretary of State would gain the authority to scrutinize and potentially block deals that prioritize profit over the public interest.
“It is a scandal that our most vulnerable children are being treated like cash cows by offshore investors,” “SEND provision deserves to be treated as essential national infrastructure, to ensure our children’s education is prioritised and prevent public money being funneled away to offshore companies.” Liberal Democrat Education Spokesperson Munira Wilson MP.
Wilson added that the current system "fails to prioritise the very children it is designed to help, all while private SEND providers rake in record profits and squeeze council coffers dry.”
Personal Stakes for Leadership
For Liberal Democrat Leader Ed Davey MP, the issue is not just political, but personal.
“I know what it’s like to have to navigate the bureaucratic quagmire of the SEND system all too well. 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 frontline services for children, not lining the pockets of offshore investors. We cannot allow this rigged racket to drag on any longer. Our children and parents deserve better.” Liberal Democrat Leader Ed Davey MP
Comments
Post a Comment