Independent School Profit Proposal Sparks Industry Concerns in Sweden

The proposals for restrictions on independent schools distributing profits are far too broad and threaten to bring down the entire industry, according to Andreas Mörck, federation director for Almega Education. The Social Democrats also reject the proposals – but because they do not go far enough.

» Published: April 07 2025

Independent School Profit Proposal Sparks Industry Concerns in Sweden
Photo: Pressbild/Almega Utbildning

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The investigation submitted to Education Minister Johan Pehrson (L) on Monday includes, among other things, proposals for restrictions on the right to distribute profits from independent schools and preschools.

In both the establishment of a new school and when a principal has got a new owner, a ban on profit distribution is proposed for five years.

Government Grants

Andreas Mörck, federation director for Almega Education, the independent schools' industry and employers' federation, understands that one wants to focus on schools and preschools that do not meet the quality standards – but means that the proposals strike broader than that.

It's time to shut down the operations that do not meet the standards. But to shoot with a shotgun at Sweden's independent schools, I think that's a very bad idea.

He is most critical of the proposal that it should not be possible to receive government grants for quality-enhancing measures, while the principal distributes profits.

Government grants are ten percent of the total financing of Swedish schools, so it is for us as well. If you take that away and we have margins of maybe three percent, everyone understands that it won't work out.

S: Gift to the Corporations

The Social Democrats also criticize the proposals – but because they do not go far enough.

We note that it will still be possible to use school funding to buy waffle cottages. This is far from sufficient to address the problems we see in Swedish schools, says Åsa Westlund, education policy spokesperson for S.

On the contrary, it can be seen as a double gift to the school corporations. They can continue to take out profits and at the same time avoid competition from new actors since it will be more difficult to start new profit-driven schools.

At Monday's press conference, Education Minister Johan Pehrson (L) promised that "profiteers should be kicked out of school with their heads held high". The Left Party's education policy spokesperson Daniel Riazat does not give much for the promise.

These are empty words. This will not kick out any of the banks that own independent schools. It will not prevent any venture capital companies that are in school just to enrich themselves. What is needed is a ban on limited companies in school, says Riazat.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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