Designate SEND Services as “Critical Infrastructure” to stop offshore profiteering

Liberal Democrats Call to Designate SEND Services as “Critical Infrastructure” to stop offshore profiteering

Bristol Liberal Democrats have joined calls for new legal protections to prevent private equity firms and offshore investors from treating Special Educational Needs and Disabilities (SEND) provision as a “cash cow.”

The proposal has been launched as the government deliver their SEND White Paper this week. The plan would see SEND services officially designated as Critical National Infrastructure (CNI). This status - currently reserved for essential services like water and energy - would give the government power to block acquisitions that prioritise profit over the welfare of vulnerable children.

In Bristol, the cost of SEND provision has come under increasing pressure. Nationwide, local authority spending on private SEND provision has soared, with some areas seeing a tenfold increase since 2015.

As of August 2025, the Council’s Designated Schools Grant (DSG) – a ringfenced account for education – stood at £63 million, with the high cost of private SEND provision cited as a major contributor. 

Bristol’s Liberal Democrat Councillors have previously called for private SEND providers to have a cap placed on their profits, after House of Commons Library research revealed that some firms made profits margins of over 20%.

Cllr Andrew Varney (Liberal Democrat, Brislington West), member of the Council’s Children and Young People Policy Committee, commented: 

“It is appalling that while parents in Bristol are fighting tooth and nail for the support their children deserve, offshore investors are raking in millions in profit from our local council.

“Private equity funds have, for years, shamelessly exploited a loophole in the system, funnelling money overseas into shareholders' pockets and away from vital frontline care. 

“By designating SEND as critical infrastructure, we can ensure that public money stays where it is needed - supporting our most vulnerable children rather than lining the pockets of sovereign wealth funds in Abu Dhabi or private firms in Europe.”

Notes to editors:

• Bristol Liberal Democrats call for SEND provider profit cap: Liberal Democrats call for profit cap on “profiteering” private SEND providers - Bristol Liberal Democrats
• National Press Release: Treat SEND as “critical infrastructure” to stop offshore investors treating vulnerable children as "cash cows" - Liberal Democrats

Policy Explainer:

• What is SEND? SEND stands for Special Educational Needs and Disabilities. These are services, schools, and support systems designed to help children who need extra support to learn, including those with physical disabilities, learning difficulties, or autism. 
• What is the problem? In recent years, private companies - including foreign investment funds - have been buying up SEND schools and services. This has led to: 
  • Public money being diverted: Local authorities spend huge amounts on private providers, sometimes ten times more than in 2015. 
  • Profit over children: Investors prioritise financial returns, not the quality of education for vulnerable children. 
  • Lack of transparency: Offshore funds can exploit loopholes, making it hard to hold them accountable. 
• What are Liberal Democrats proposing? The party wants all private SEND provisions to be designated as “Critical National Infrastructure” (CNI). This is a legal status currently used for essential services like energy, water, and transport. 
• What would this do? 
  • Tighter government oversight: Any mergers or acquisitions of SEND providers would be explicitly subject to government scrutiny under the Enterprise Act. 
  • Protect public interest: The Secretary of State could intervene if a deal risks harming children, communities, or public money.
  • Stop offshore profiteering: Foreign funds would find it much harder to buy SEND schools purely for profit. 
  • Increase transparency and accountability: Private providers would have to operate openly, ensuring funds are used for children’s education, not investor returns. 
• Why it matters: Every child deserves high-quality education and support. By treating SEND provision as critical infrastructure, the government can protect children from being treated like a cash machine, ensure public money benefits the children it’s intended for, and prevent private investors from gambling with vulnerable lives.