Academy trust leaders pioneering new state-run, independent special schools have opened up about their plans, saying if they 鈥済et it right, we could save the sector millions鈥. and are scoping out how they could open new private SEND schools aimed at disrupting the often for-profit sector, Schools Week can reveal. The plans followed a Schools Week investigation revealing how firms backed by private equity investors and a Middle East sovereign wealth fund were making millions in profit from running such schools. 鈥楾ransparent and ethical鈥 set up Discovery, a 16-school trust including three special schools, is speaking to councils to try and get a guarantee they would commission places for five years for a school in the East Midlands. The trust is still looking at funding with one option being a non-profit company to seek donations. Another is to use trust reserves for the building. But, they are seeking government clarity as it would likely need Education and Skills Funding Agency sign-off as a 鈥渃ontentious payment鈥. Chief executive Paul Stone said either way 鈥渋t鈥檚 making sure the costs are transparent to everybody 鈥 local authorities, other schools 鈥 so they can see we are not profiteering, it鈥檚 a fully non-profit making organisation.鈥 The government has failed to open enough state special schools to meet demand. Instead, it has been met by private special schools 鈥 who charge much more. Councils spent more than 拢1.3 billion on independent special schools in 2021-22 – double the amount spent six years earlier. Stone said placement costs are likely to be higher than a state-funded special school, because of higher premises costs, but it will be 鈥渢ens of thousands cheaper per place鈥 than private provision. The average cost of an independent place in 2021-22 was 拢56,710 鈥 more than double the 拢23,224 average cost for a state special school. 鈥淚f MATs across the country did this and did it on a transparent, ethical setup 鈥 we could dramatically put millions back into the education system,鈥 Stone said. 鈥淚 think if we get this right, the independent sector should be extremely worried.鈥 鈥楻everse tax-haven money flow鈥 Deputy chief executive Chris Bruce added it could also save councils money on transport, as children would remain in their local area. If Discovery secures the council commitment and premises, they believe the school could be open within a year. State special schools can take years to open. Tom Legge South-east based The Beckmead Trust, which runs seven special schools, is another MAT looking to set up an independent provision. A spokesperson said they are discussing it with trustees and 鈥渁re at the scoping phase to see if we can draw up a tangible plan to open a school鈥. The trusts are working with consultants Premier Advisory Group, which has informed government of its plans. Tom Legge, PAG鈥檚 managing director, said the current system is 鈥渂leeding money out of the sector and into tax havens or overseas sovereign wealth funds”. 鈥淭his is not right and needs to be challenged and this is what we are doing鈥 We are confident that, with the support of commissioners, MATs, morally-centred independent providers and central government we will be able to slow, then stop and hopefully reverse the flow of money out of the sector. 鈥淭his will create some space and budget for the sector to start to heal.” Council procuring 拢20m school Meanwhile in Wiltshire, the council is 鈥 for the first time 鈥 running a 拢20 million procurement exercise to open a 60-place independent special school for children with social, emotional and mental health needs this September. The council is one of 34 with safety valve agreements, where sweeping reforms are made in exchange for government bailouts. Under a maximum 10-contract, it hopes to reduce 鈥渆xpensive鈥 independent special school spend. The council would provide grade two listed Melksham House on a peppercorn rent. The provider must have expertise in running an Ofsted-registered 鈥榞ood鈥 or 鈥榦utstanding鈥 special school. In council documents, Wiltshire said there will be a “rigorous tendering process and robust contract management” to ensure value for money. Laura Mayes, education cabinet member, said: 鈥淭his is the first time we have run a procurement exercise and while we are still in the process and can鈥檛 say a great deal more at this stage, it is important to add that our aim is to appoint an experienced, quality specialist education provider. 鈥淲e look forward to appointing an education provider who can maximise the opportunities of this beautiful setting and ensure school days work well for all.鈥