The Liberal Democrat MP for Yeovil has criticised "profiteering" by private special educational needs providers.
Adam Dance said the sector was "exploiting" the SEND system in crisis.
Research by the House of Commons Library, commissioned by the Liberal Democrats, revealed that top private equity companies in the SEND sector have seen their profits soar, with some making margins of over 20 per cent.
This has occurred as the SEND crisis has deepened, burdening local authorities with high costs.
Around £1.42bn was spent on home-to-school transport for SEND young people between 2023 and 2024.
This has pushed council finances close to bankruptcy, forcing some to reduce or end services for vulnerable groups.
Mr Dance said: "It is totally unacceptable that top private SEND providers are lining their pockets exploiting a SEND system in crisis, while children are being failed every day.
"SEND provision is a key issue for many parents across Somerset, so I am deeply concerned to see this greedy profiteering from private equity firms.
"It is a major driver of the crisis in our SEND system."
He added: "The government needs to cap the profits of these firms at eight per cent, to ensure that money is channelled back into the SEND system, and not into the pockets of shareholders.
"It's time to put provision over profits; our young people deserve so much better."
The latest government data shows 5,725 children in Somerset currently have an education, health, and care plan.
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