{"id":242609,"date":"2026-03-02T05:00:00","date_gmt":"2026-03-02T05:00:00","guid":{"rendered":"https:\/\/schoolsweek.co.uk\/?p=242609"},"modified":"2026-02-27T13:12:15","modified_gmt":"2026-02-27T13:12:15","slug":"dfe-eyes-private-special-school-veto","status":"publish","type":"post","link":"https:\/\/schoolsweek.co.uk\/dfe-eyes-private-special-school-veto\/","title":{"rendered":"DfE eyes private special school veto"},"content":{"rendered":"\n<p>Bridget Phillipson will give herself the power to refuse new private special schools, after vowing to \u201cclamp down\u201d on private-equity backed firms \u201csucking money out of our education system\u201d.<\/p>\n\n\n\n<p>Ministers sought to contain expensive independent special school fees in their SEND reforms, proposing tighter regulation and increase financial transparency.&nbsp;<\/p>\n\n\n\n<p>Council spending on these placements has risen to more than \u00a32 billion a year. The growth accounts for almost a quarter of the total rise in high-needs spending since 2018, according to the Institute for Fiscal Studies.<\/p>\n\n\n\n<p>In the white paper, the DfE said it was concerned \u201cplacements in the sector are contributing to unsustainable financial pressure\u201d on councils \u201cwithout clear evidence they are leading to better quality support, outcomes and value for money\u201d.&nbsp;<\/p>\n\n\n\n<p><em>Schools Week<\/em>\u00a0has revealed the soaring spend by councils on independent special schools amid the state capacity crisis in recent years.<\/p>\n\n\n\n<p>Our <a href=\"https:\/\/schoolsweek.co.uk\/how-investors-are-making-millions-from-the-bankrupt-send-system\/\" target=\"_blank\" rel=\"noopener\" title=\"award-winning investigation\">award-winning investigation<\/a> unveiled the big companies involved making millions, including those backed by private-equity investors and a Middle East sovereign wealth fund.<\/p>\n\n\n\n<figure class=\"wp-block-embed alignright is-type-wp-embed is-provider-schools-week wp-block-embed-schools-week\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"smdg5TkXth4f6Zl3OMH\"><blockquote class=\"wp-embedded-content\" data-secret=\"RPrwFGIhgz\"><a href=\"https:\/\/schoolsweek.co.uk\/how-investors-are-making-millions-from-the-bankrupt-send-system\/\">How investors are making millions from the \u2018bankrupt\u2019 SEND system<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;How investors are making millions from the \u2018bankrupt\u2019 SEND system&#8221; &#8212; Schools Week\" src=\"https:\/\/schoolsweek.co.uk\/how-investors-are-making-millions-from-the-bankrupt-send-system\/embed\/#?secret=WREaY1jE1Z#?secret=RPrwFGIhgz\" data-secret=\"RPrwFGIhgz\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/span>\n<\/div><\/figure>\n\n\n\n<p>The government is proposing new statutory standards for private special schools, which would require them to offer placements based on new specialist provision packages and bandings. They will have to report their costs to councils.&nbsp;<\/p>\n\n\n\n<p>The education secretary would have the power to refuse the expansion or opening of new private special school where there is limited evidence of demand from councils.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&#8216;Negligent policy&#8217;<\/h3>\n\n\n\n<p>These settings \u201cfill gaps where local capacity does not exist,\u201d said Claire Dorer, chief executive of the National Association of Special Schools, which represents state and private schools.&nbsp;<\/p>\n\n\n\n<p>\u201cThe independent sector is currently the only part of the system able to create new specialist places quickly and without upfront capital risk to the public purse. <\/p>\n\n\n\n<p>&#8220;A policy designed to shrink provision before providing real alternatives is not strategic, it is negligent.\u201d<\/p>\n\n\n\n<p>Pepe Di\u2019Iasio, general secretary of the Association of School and College Leaders, said price bands seemed \u201csensible and logical\u201d.<\/p>\n\n\n\n<p>But he said the government \u201cmust ensure that prices are set at a level which is sufficient to meet the needs of children who require significant support\u201d.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Profit &#8216;should be focus on pupil outcomes&#8217;<\/h3>\n\n\n\n<p>Phillipson told parliament this week she would act \u201cto clamp down on the massive expansion in private equity-backed, independent specialist provision that is sucking money out of our education system into profit when it should be focused on outcomes for children\u201d.<\/p>\n\n\n\n<p>DfE analysis found of the 15 private equity funds that own independent special schools, five are based outside of the United Kingdom. This includes Jersey, Guernsey, USA, Qatar and Abu Dhabi.<\/p>\n\n\n\n<p>Collectively, these own 170 schools with 9,000 pupils, the DfE said.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"970\" height=\"794\" src=\"https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-970x794.jpg\" alt=\"\" class=\"wp-image-242184\" srcset=\"https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-970x794.jpg 970w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-670x549.jpg 670w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-768x629.jpg 768w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-1536x1258.jpg 1536w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-640x524.jpg 640w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-1024x838.jpg 1024w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-1200x983.jpg 1200w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-244x200.jpg 244w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-1000x819.jpg 1000w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-347x284.jpg 347w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph-489x400.jpg 489w, https:\/\/schoolsweek.co.uk\/wp-content\/uploads\/2026\/02\/ISS-spend-SW-graph.jpg 1667w\" sizes=\"(max-width: 970px) 100vw, 970px\" \/><\/figure>\n\n\n\n<p>The schools charge an average of \u00a363,000 per child a year \u2013 more than twice the \u00a326,000 cost of a state special school, according to government analysis. Fees vary but some charge more than \u00a3100,000 a year.&nbsp;<\/p>\n\n\n\n<p>The DfE expects the average fees councils can \u201cpay will be lower in cash terms from 2028-29\u201d.<\/p>\n\n\n\n<p>Outcomes First Group, one of the largest providers, welcomed the proposals and said it had been \u201ccalling for these measures for some time, including outcomes-focused commissioning and stronger progress tracking for pupils with SEND that aligns closely with our own framework\u201d.<\/p>\n\n\n\n<p>However, it is \u201ccritical to have clarity and further detail quickly to ensure any new policy is implemented effectively\u201d.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Government tsar advises private SEND firm<\/h2>\n\n\n\n<p>The government\u2019s SEND adviser Christine Lenehan advises one of the largest private-equity backed independent special school providers, <em>Schools Week<\/em> can reveal.<\/p>\n\n\n\n<p>Lenehan took up the <a href=\"https:\/\/www.outcomesfirstgroup.co.uk\/about-us\/meet-our-team\/\" target=\"_blank\" rel=\"noopener\" title=\"chair role\">chair role<\/a> of Outcome First Group\u2019s safeguarding and quality committee after retiring from the Council for Disabled Children.\u00a0<\/p>\n\n\n\n<p>She told <em>Schools Week<\/em> she agreed to take on a specific role which ensures \u201cchildren in their services were safe\u201d. But she also was a key adviser to the Department for Education on their SEND reforms.\u00a0<\/p>\n\n\n\n<p>Asked how conflicts of interested were managed, she said: \u201cI am always aware of conflicts of interests in all the roles I take and am transparent with all parties.&nbsp;<\/p>\n\n\n\n<p>\u201cI am known for my credibility and professionalism, and would do nothing to undermine this.\u201d<\/p>\n\n\n\n<p>She added: \u201cMy views on independent special schools and their need to deliver high-quality education with a transparent funding base, and in partnership with local authorities is well known.\u201d<\/p>\n\n\n\n<p>Andr\u00e9 Imich, the DfE\u2019s former SEND adviser, also sits as an independent member on the panel. He took up the role six months after leaving the DfE in 2024. He said the position was cleared by the DfE.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">DfE took conflicts &#8216;very seriously&#8217; <\/h3>\n\n\n\n<p>The DfE said it considers any potential conflicts of interest in &#8220;great detail&#8221; and take them \u201cvery seriously\u201d. It takes \u201call necessary precautions\u201d.&nbsp;<\/p>\n\n\n\n<p>Outcomes First Group made an operating profit of \u00a37.1 million on turnover of \u00a3264.3 million in 2023-24. It was acquired by USA-based private equity firm TPG in 2023. <\/p>\n\n\n\n<p>Its profits have been reinvested to strengthen provision, and all UK taxes are paid, a spokesperson said.\u00a0<\/p>\n\n\n\n<p>They added it ensures no conflicts of interest and that \u201cour working arrangements are transparent and appropriate\u201d. <\/p>\n\n\n\n<p>It is \u201cproud to have sector-leading experts on our safeguarding and quality committee. They help ensure the highest standards for the children and young people in our schools.<\/p>\n\n\n\n<p>\u201cThe chair is an independent advisor supported by other independent education specialists. Together they help hold the organisation to account. <\/p>\n\n\n\n<p>&#8220;The committee has operated effectively for more than eight years, playing a significant role in driving exceptional standards for children with SEND, reflected in the group\u2019s consistently high Ofsted outcomes.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Phillipson set to have powers to stop independent special schools opening or expanding where there&#8217;s &#8216;limited evidence of demand&#8217;<\/p>\n","protected":false},"author":311127,"featured_media":236534,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[62],"post-theme":[3782],"class_list":["post-242609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-send","post-theme-schools-white-paper"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO Pro 4.9.6.2 - aioseo.com -->\n\t<meta name=\"description\" content=\"Bridget Phillipson will give herself the power to refuse new private special schools, after vowing to \u201cclamp down\u201d on private-equity in the sector\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Samantha Booth\"\/>\n\t<meta name=\"google-site-verification\" content=\"0_S1bNOgEOb8-P5YJS4NUsxT6QJc2eOKAYYf8V6EDmU\" 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