Parliament spends £2 billion annually on placing pupils with special educational needs and disabilities (SEND) in private schools, a 46% increase over four years. The Public Accounts Committee (PAC) revealed this dependency is due to insufficient capacity in the government sector. The Labour-run Department for Education acknowledged the need for private schools in SEND education. Recent tax hikes, including VAT on tuition, raise concerns over potential private school closures, which could leave vulnerable students without options. The PAC criticized the current SEND system as “confused” and highlighted escalating costs for local authorities due to rising placements in private schools.
Parliament is spending £2 billion a year to send pupils with special needs to private schools, MPs have revealed, as Labor attacks the sector.
The Public Accounts Committee (PAC) found that spending had increased by 46 per cent in just four years, highlighting the state’s “reliance” on private schools.
The committee said parliament must fund private schools for people with special educational needs and disabilities (SEND) because of a lack of “capacity” in the government sector. .
The report said even the Labour-run Department for Education (DfE) acknowledged two months ago that private schools “have a role to play” in educating people with SEND.
The plans come amid concerns that Labour’s tax hike could lead to the closure of some private schools, leaving SEND pupils on the register with nowhere to go.
Starting this month, value-added tax will be imposed on private school tuition fees, and from April, corporate fee relief measures will be abolished.
A spokesperson for campaign group Educate Not Tax said: “PAC’s findings show how much the government relies on independent schools to serve the most vulnerable children. “We are once again questioning Labour’s divisive rhetoric and ill-judged attacks on these schools.”
PAC’s wide-ranging report highlighted a “confused” and “unworkable” SEND system and warned that many families were unable to access the support they needed.
Parliament is spending £2bn a year to send pupils with special needs to private schools, MPs have revealed, as Labor attacks the sector (File image)
The number of pupils with EHC placed in private schools increased by 17,000 between 2018/19 and 2023/24, according to a recent National Audit Office report (File image)
And he warned that many children with SEND education, health and care (EHC) plans will not be able to attend state schools.
The report said: “Local authorities are increasing spending on more expensive independent school placements for EHC children as government sector capacity is unable to meet growing demand.”
The report shows that councils will spend £2 billion in 2022-23, an effective 46% increase on the £1.4 billion spent in 2018-19 due to increased student numbers.
According to a recent National Audit Office report, the number of pupils with EHC placed in private schools increased by 17,000 between 2018/19 and 2023/24.
If there is no space in the state, councils are empowered to pay for private school for people with EHC.
The report pointed to comments made by one of the DfE’s senior civil servants in November that highlighted the importance of private schools.
Juliet Chua, executive director of the DfE’s schools group, told the Commons Education Select Committee: “Independent specialist schools can play an important role in the system where there is a need for particularly low incidence. It’s worth saying…”
“The large increase in numbers suggests that costs are very high and dependent on independent expertise.”
City councils have powers to pay for private schools for people with EHC if there are no state places available (File image)
The report notes that “the department prefers to rely less on these settings” because of their costs.
But the ministry added: “However, the ministry recognizes that some needs always need to be met in a professional environment and that independent schools have a role to play.”
Labor said the tax increase would not affect SEND pupils because councils can apply to HMRC to recover the VAT fee increase.
However, there is no mention of what will happen if students are displaced due to school closures.
Suzanne Hall, owner of Farrowdale House Preparatory School, said last month that SEND schools could close due to the new tax system.
She said: “If schools have to close, children with SEND will be pushed into the state sector, where they are unlikely to be dealt with and may end up being educated at home.” said.
Last night, government sources said Labor was fixing the “broken” SEND system “left behind by the previous government”.
They condemned the “imprudence” of recent criticism by the Labor Reform Conservative Party, which aims to improve standards in the state sector.
