Children’s progress put first as government seeks to rein in runaway independent SEND school fees

New government action seeks to end spiralling independent special school costs. Its goal is to reinvest funding where it makes the biggest difference to pupils’ life chances. The government believes that thousands more children with SEND will get the support that helps them achieve and thrive.

The move comes ahead of the government’s schools white paper. The government see this as a golden opportunity to change the course of children’s lives for the better. It seeks to move away from a one size fits all approach to one where every child belongs. An approach where high standards and inclusion are two sides of the same coin.

Concerns

Independent special schools charge an average of £63,000 per child per year. This is more than twice the £26,000 cost of a state special school. Yet there is no evidence children do any better. Over 30 per cent of these schools are backed by private equity firms. This raises concerns that public money, intended to support children with the most complex needs, may be contributing to private profit.

The government believes that clear national price bands and strengthened standards will ensure every specialist placement delivers real progress for children, not higher bills for councils. Its aim is to end the postcode lottery that families have faced in securing high-quality SEND support.

Rising demand

Demand for SEND support has risen sharply in recent years, driving an over-reliance on expensive independent special school placements. These new government measures aim to reset the specialist sector by directing funding toward what matters most: high‑quality education, better progress, and stronger life chances for children.

For those children who can thrive in mainstream schools with the right support, new research shows that children with SEND perform half a grade better at GCSE than their peers in special schools.

Education Secretary, Bridget Phillipson said:

“For too long, families have faced a postcode lottery – fighting for support that depends on where they live, not what their child needs. That ends now.

“We’re cracking down on providers who put profit before children. New standards and proper oversight will ensure every independent special school placement delivers real outcomes for children – not unreasonable bills for local authorities.

“This is about building a system where every child with SEND can achieve and thrive, at a school that’s right for them and delivers the life chances they deserve.”

Under the plans the government aims for:

• new national price bands to end unjustified fee variation for the same provision, giving councils the confidence to challenge poor value placements
• new statutory SEND-specific standards to ensure every independent special school delivers consistent, high-quality support and clear outcomes for pupils
• full cost transparency to show exactly how public money is spent
• local authorities to have a formal say on new or expanding independent provision so places are created where children actually need them

The goal of the new framework is to ensure special schools are high-quality, locally planned and financially sustainable.

Cllr Louise Gittins, chair of the LGA, said:

“It is good the Government has set out plans to regulate independent special schools and measures to control costs.

“While in some cases an independent school can be the best place for a child to attend, it is wrong that when councils’ own costs are soaring that some providers are setting unreasonably high prices and making significant profits from state-funded placements.

“To reduce the reliance on independent special schools, we look forward to the Government’s Schools White Paper ensuring more children with SEND get the care and support they need in schools and other mainstream settings.” 

Investment

These proposed measures come alongside work already underway seeking to create an inclusive education system. The government has invested £3.7 billion to deliver 60,000 specialist places in mainstream schools. It has allocated a further £200 million to train all teachers and teaching assistants to support pupils with SEND.

This forms the foundations of the government’s reform plans, centred around the belief that children with SEND can thrive in mainstream settings with the right support.

For example, when looking at comparable pupils with EHCPs, the data shows that mainstream schools enter far more of these pupils for GCSEs, and those who take the exams achieve, on average, about half a grade higher in English and maths than their peers in special schools.

That’s a half a grade which could mean the difference between a pass or fail at one of the most important academic milestones. 

The forthcoming schools white paper looks to build on these reforms. The government plans to outline further steps to strengthen oversight, improve inclusion, and direct public funding toward support that delivers the best outcomes for children and young people.

Commenting on this new government action, Paul Whiteman, general secretary of school leaders’ union NAHT, said:

“The private sector currently plays an important role in SEND provision. Standardising the fees private special schools can charge is a sensible move to ensure fairness and consistency across the system.

“It will be crucial that funding for the different bands must match the needs of the child and allow local authorities and schools to put the appropriate level of specialist provision in place.

“There also needs to be sufficient special places available. The government has recognised that there is a need for additional places through recent funding announcements and we would encourage them to keep investing in the sector.”

This new government reform represents a decisive attempt to create a more consistent, transparent and value‑driven SEND system that strengthens outcomes for children while protecting public investment.