LaingBuisson has published the seventh edition of their Children’s Services UK Market Report.

Highlights include:

  • The total independent sector special education market is valued at £2.41 billion (2024/25) – out of a total market value for special education provision in England of £7.11 billion (1) (2)
  • For-profit special education providers have a total market value of £1.68 billion, with the remaining £733 million delivered by not-for-profit providers
  • The number of children registered as attending an independent special school has grown by more than 10% for five consecutive years – doubling between 2019 and 2024
  • The number of children with an Education, Health and Care Plan (ECHP) grew 11.6% to reach 434,000 in 2024. Of which 33,500 were registered as attending an independent school setting
  • Autism Spectrum Disorder (ASD) is by far the largest driver for volume growth in EHCPs. It has a net volume increase of 33,000 since 2015, and is the primary identified need in 36% of ECHPs
  • Local authorities reported spend on high need support and provision has been increasing at more than £1 billion a year since 2021/22 – with the latest reported year (2023/24) showing expenditure of over £11.7 billion
  • 90 new independent special schools opening in 2024 – expanding capacity by a further 3,212 places for children with special educational needs

The independent sector special education sector has continued to grow in value as the number of children identified with having a special educational need or disability (SEND) that requires an ECHP continues to increase, according to research published by LaingBuisson.

LaingBuisson’s latest annual Children’s Services Market Report (3) values the total UK market at £8.67 billion in 2025. Given its size, the English market dominates with a market value of £7.11 billion.

The independent sector market value is £2.41 billion, of which the for-profit segment is valued at £1.68 billion and the not-for-profit is valued at £733 million. For-profit providers tend to specialise on the schools element of special education provision, whilst not-for-profit operators provide the majority of independent provision for post-16 special colleges.

In total more than 434,000 children and young people who have an EHCP. Of which 193,200 are registered as attending non-mainstream schools (4). This includes more than 33,000 children and young people with an EHCP that are registered in independent school settings. This means that approximately 33% of the total market value of special education provision is linked to 17% of the total number of pupils educated in independent sector schools. However, it should be noted that the independent special schools sector has tended to specialise in much higher complexity needs, which require more specialist provision, higher staff-pupil ratios and lower overall class sizes. This increases the average placement fee per child. There is little noticeable difference between the average fee of a for-profit or a not-for-profit provider.

The growth in EHCPs has been primarily driven by a large increase in the number of EHCPs with ASC identified as the primary need – accounting for 36% of all EHCPs. ASD as a primary need has increased dramatically over the last ten years. Between 2010 and 2015 the net volume growth was 8,150 but increased to net volume growth of 16,004 (2015-2020) and 17,349 (2020 – 2024).

London and the South East account for a large amount of the demand – 37% of all EHCPs across all school settings are from local authorities in these regions.

In response to growing demand, the independent sector has added a large amount of new capacity to the system. The independent sector has added substantial capacity the system – with the number of registered settings has increased by 222 since our November 2022 report – a near 30% increase, and growth in registered places has increased by 16,879 places – a 44% increase. In 2024, 90 new school locations were registered, accounting for 3,212 registered places.

In a sign that providers are responding to changes in market demand, alongside new capacity being added to offer medium and high complexity support, some providers are beginning to offer services at the lower complexity end of the market and developing tailored service supports to help commissioners with services that re-engage children with mainstream education, in both the special education and alternative provision environment.

Report author, Tim Read said:

“LaingBuisson’s analysis shows how the ongoing rise in the number of children requiring specialist educational support is driving growth in the independent sector – with much of the demand attributable to a large increase in ASD diagnoses. With volume increases in all settings, the independent sector is not taking share from existing providers but instead is offering much needed supply – particularly where higher complexity support is required.

The government has remained tight-lipped about its plans for SEND reforms Any change is likely to be unpalatable – setting them on a collision course with parents and schools – but with local expenditure increasing at over £1 billion per year it seems clear that something must be done if funding high needs support isn’t going to bankrupt local authorities around the country”

Notes to Editor

  1. Due to changes in methodology it is not possible to provide a direct comparison of LaingBuisson’s previous reported market value for special education schools with the current value. However, the methodological change was relatively minor and therefore it can be asserted with confidence that the market has shown strong growth since the previous edition of the report when the independent sector special education market value was £1.56 billion (2022/23).
  2. The independent special education market value consists of both for-profit and not-for-profit independent providers. It includes both special education schools, and special post-16 colleges. The total all-sector provision includes the independent sector value, and expenditure on maintained and non-maintained special schools.
  3. LaingBuisson’s Children’s Services market report also includes the Children in Care market. A separate press release is available detailing market information for residential children’s care and foster care provision
  4. Non-mainstream schools include maintained special schools, non-maintained special schools, and independent settings