Lib Dems demand cap on SEND providers profits as top firms rake in £100m

31 Jul 2025

EMBARGO: 22:30 Thursday 31 July

Liberal Democrats call for end to “absolute scandal” of profiteering as House of Commons Library research reveals that the top private SEND providers made tens of millions last year
The party is calling for private providers of special needs education to face an 8% cap on their "exorbitant” profits, being made off the backs of disabled children

The top private equity companies providing SEND schooling have made combined profits of over £100m a year, with some making margins of over 20%, House of Commons Library research commissioned by the Liberal Democrats has revealed.

The Liberal Democrats are pushing for private providers of special needs education – some of whom are backed by private equity companies based in tax havens or foreign sovereign wealth funds – to face profit caps of 8% to curb excessive profiteering off the backs of disabled children.

Research commissioned by the party and carried out by the House of Commons Library showed that the top handful of profiting companies each took home tens of millions a year. The Witherslack Group Ltd, operators of 28 special schools, turned over just over £200 million a year, making £44 million in profit – a margin of over 20%. That profit is 150% what the company made in 2022 – skyrocketing up from an already eyewatering £27 million – while directors at that company, reports show, made six figure salaries.

CareTech Holdings Limited, another private equity company that provides private SEND schooling, raked in over £50m in annual profit, latest stats show. As uncovered by the Times in 2022, that company sent more than £2 million to its founders’ offshore company in the Caribbean while accepting Government Covid support.

This profiteering comes as council finances are being pushed to the brink, with many facing bankruptcy or having to reduce or end service provision for vulnerable groups.

Labour Ministers have publicly toyed with the idea of a profit cap, but voted against Lib Dem proposals to introduce a cap at committee stage of the recent Children’s Wellbeing and Schools Bill.

Liberal Democrat Education Spokesperson Munira Wilson MP said:

“It is an absolute scandal that private equity companies are shamelessly profiteering from the crisis in SEND education, while families are left to fight tooth and nail for vital support for their children.

"Children with special educational needs deserve the best possible support, and should not be viewed as cash cows for vulture firms. This excessive profiteering is a major driver of the crisis in our SEND system. These companies should be ashamed.

"We need urgent action. Liberal Democrats are calling for the Government to cap these exorbitant profits at 8%, to ensure that money is channelled back into the SEND system, and not into the pockets of shareholders. It's time to put our children first, not corporate greed.”

ENDS

Notes to Editor:

The average operating profit margin across all for-profit entities calculated by the Office for National Statistics (ONS) is 8.8 per cent. The Education Secretary has previously said that this could form the basis for a profit cap in the Children’s Social Care sector.

Please see the research by the House of Commons Library here:

Outcomes First Group (Oasis Topco 1 limited): Only available for the year to 31 August 2024 when turnover was £264.3 million and operating profit 7.1 million.
Aspiris Holdco limited: Turnover was £192.5 million and operating profit £19.2 million in the year to August 2023. Turnover was £194.2 million and operating profit £20.9 million in the following year.
Witherslack Group Limited: Turnover was £172.8 million and operating profit £34.8 million in the year to August 2024. Turnover was £208.0 million and operating profit £44.6 million in the following year.
Cavendish Education: The accounts for none of the six companies with ‘Cavendish Education’ in their name at the same address as that given for Cavendish Education Limited match the figures given in the article for 2021 or 2022.
CareTech Holdings Limited: Revenue was £574.6 million and operating profit £12.2 million in the year to September 2023. Revenue was £630.4 million and operating profit £53.4million in the following year.