Escalating Costs of Independent Special Schools Strain Local Authorities and Taxpayers, but EHCP Plus Could Help

By Sarah Warren, Former EHCP Plan Writer and Caseworker

The reasons behind the rise in costs to local authorities of independent special schools is both complex and contentious as well as being highly politicised and these have become a significant concern for local authorities. Over the past decade, spending on these services has surged by 300%, reaching over £1.8 billion annually. Some private providers charge local authorities up to £200,000 per child per year for residential placements and £133,000 for day pupils with special educational needs or disabilities (SEND). ​ Councils are often forced to rely on these expensive private providers due to a lack of capacity in state-run special schools. 

This surge in costs is partly driven by private equity firms and investors entering the special education sector. Companies backed by private equity and sovereign wealth funds have expanded rapidly, with some providers charging fees significantly higher than those of state schools. For instance, average private sector special school fees are about £62,000 a year, compared with £10,000 – £24,000 in state special schools. These investors also often prioritize profit, leading to concerns about the quality of education and care provided.​ 

Compounding the issue is the shortage of places in state-run special schools, which are generally more cost-effective. The number of children requiring Education, Health, and Care Plans (EHCPs) has increased by 140% over the past decade, reaching 576,000. However, the expansion of state-maintained special schools has not kept pace with this rising demand. As a result, local authorities are increasingly reliant on private providers to meet the needs of SEND students, despite the higher costs associated with these placements. ​

The complexity of securing appropriate placements is further exacerbated by difficulties in the EHCP process and quality of EHC Plans. EHC plans outline the support required for each child, but discrepancies can arise between the needs of the child, the provision to be specified in the EHCP and the capacity to fund the provision by local authorities. This misalignment can lead to delays and inadequate support for children who require specialist education and care.​ Drawing from personal experience as a caseworker over 12 years, the difficulty in finding suitable special school placements for children with clear needs has been evident for a long time. Also, the administrative load created by managing and drafting EHCPs often diverted time and attention away from direct engagement with families and children. 

To address these challenges, technological solutions like Agilisys’s EHCP Plus tool offer promising improvements. EHCP Plus utilizes artificial intelligence to streamline the EHCP process, reducing the time SEND caseworkers spend drafting EHC plans. Implementing tools like EHCP Plus could therefore free up vital resources to better serve the needs of SEND students. Moreover, the potential cost savings from improved efficiency could allow local authorities to invest more in securing appropriate placements, including expanding state-run special school capacities, helping to reduce reliance on private placements.​

In conclusion, the combination of rising costs, limited state provision, and administrative complexities is placing immense pressure on the UK’s education system and Local Councils. Surely, addressing these issues requires a multifaceted approach, including investment in more state-run special schools as well as improvements in SEND provision in mainstream schools, alignment of EHCP provisions with actual needs, and the adoption of technologies like EHCP Plus to enhance efficiency. These measures could help create a more sustainable system, ensuring that children with SEND receive the support and education they deserve while reducing the financial strain on local authorities and taxpayers.

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