The Labour Party’s victory in the July 2024 general election has ushered in a wave of policy commitments with new implications for Special Educational Needs and Disabilities (SEND) provision. Labour has signalled its intent to address longstanding challenges in the SEND sector, particularly through a “community-wide approach” to enhance inclusivity and support structures in mainstream education. However, the details of this approach remain ambiguous, prompting concerns among SEND stakeholders about practical implementation. Cost pressures from National Living Wage and National Insurance Contribution increases may threaten the viability of smaller independent SEND providers but could present opportunities for consolidation for larger players.

For investors in independent special schools, Labour’s agenda presents potential risks and opportunities. The government’s commitment to maintaining special schools for children with the most complex needs offers some stability for high-acuity placements. However, broader moves toward mainstream inclusion, stronger local authority oversight, and evolving funding allocations could shift demand dynamics in the independent SEND sector.

In this piece, Marwood examines Labour’s key SEND policies, the implications of new cost pressures for independent SEND providers, and the evolving funding landscape. We assess how these developments may affect the viability of independent special schools and explore strategic considerations for investors navigating this evolving market.