Swedish government proposes profit ban for new independent schools
The Swedish government and the Sweden Democrats have proposed a profit ban for new independent schools, schools with new owners, and those found to have quality deficiencies, SVT Nyheter reports.
Under the proposal, authorities would also gain expanded powers to shut down independent schools when serious misconduct is uncovered. Education Minister Simona Mohamsson (Liberal Party) stated at a press briefing that “there are short-term and irresponsible operators who prioritise profit over the quality of students’ education.”
The government’s legislative referral includes stricter conditions for independent schools, described by the Liberal Party as a “complete overhaul” of the system. Key measures include:
- A profit extraction ban for the first five years after a school’s establishment, the first three years after a change of ownership, and the first two years following a regulatory intervention for quality issues.
- Separate financial reporting requirements to ensure compliance and prevent profit-shifting within school groups.
- Sanction fees for schools violating the profit ban.
- Expanded oversight powers for the Swedish Schools Inspectorate and municipalities, making it easier to close schools in cases of serious misconduct.
- Financial penalties for schools (and municipalities) found to have misused public funding or provided false information.
The proposed changes, set to take effect on 1 July 2027, also include:
- Stricter requirements for the long-term financial stability of school operators, assessed during both the approval process and inspections.
- A rule allowing only legal entities (not individuals) to operate independent schools.
- Mandatory advance notice (by 1 November of the preceding academic year) for planned school closures.
- Inspection authority to interview students under 16 without parental consent.
- Extended use of state corrective measures, such as compulsory administration, for independent schools (currently limited to public operators).