Independent school fees and Coronavirus

The bottom fell out of our world this week financially. I have the money to pay the remaining summer term fees and our mortgage for 4 months. Then it’s gone. I’m currently not taking a full salary to ensure employees can stay employed (80% cut) and DH works in his family company - service related - and has taken a 40% cut.

So for this reason I feel sickened that I’ll be paying out for online lessons when we won’t survive much past the summer. But this is my bed and I shall lie in it as that is what I promised when I signed them up. I feel for my dc though as it will be all change. (Home and school)

You could berate me for not being more careful, for living beyond my means etc etc but my industry is hospitality and even though we saw this coming we didn’t have enough time to prepare as it was so rapid.

@VivaLeBeaver. I have explained that a belligerent defence of a private school's inalienable right to demand fees, does not exist. Even force majeure terms cannot arbitrarily be implied. A school can say it will retain fees, but opens itself up to litigation. I am unsure, why you feel that schools should have a privilege over any other private business. Coronavirus has collapsed the economy to such an extent that no business is immune. However, the government has stepped in. Somehow it appears that you seem to think that private schools should be above all of this. We have to support and look after our children at home, directly now for the foreseeable future; that may well be until Christmas or longer, never mind September. If you want to be charitable, that is up to you, but you are quite wrong, legally, to assume that private schools can arbitrarily and unilaterally apply their own terms. Like most other contractual obligations that cannot possibly be met in full, they must offer to reimburse. @RedAndGreenPlaid, try not to worry too much. The insurers are not anybody's concern but the school's, to any outcome. It makes no difference to the eventual outcome. In any case, you are not responsible for the school surviving or not. As you quite rightly have intimated, you as parents, have the ultimate responsibility to your child, not the school. Whilst of course we want schools to be around after this global change event, we also want a lot of other things to be around too. Perhaps this will accelerate the government's previous idea of nationalising all schools, who knows. The fees you pay in advance are your fees until the service has been provided unless fair, equitable and agreeable alternative arrangements are made for the full education of your children.

@Alsoplayspiccolo - very sorry to hear this - I hope something changes. We are in the same boat as we think we may be without an income throughout this - very worrying times ahead.

Not charging for lunch is ridiculous as they have not taken delivery of the food and it hasn’t been consumed - that is not even a token of goodwill.

Many independent schools do not ‘sail close to the wind’ - they are businesses before schools! They have a good handle on reserves - hence having the extra facilities and have access to funds to enable them to offer a broad curriculum. The figure being bandied around of 20% is on consumables and 80% on salaries is twaddle!

Class of 12 children at £4000 a term (which is not even the average these days) = £48,000 per term (4 months to reflect 3 terms)
1 teacher paid £14,000
1 support member paid £6000 (very generous)
Thats a total of £20,000
The remaining £28,000 is NOT all used on consumables etc - maybe £8000 a term (which I know it isn’t, but lets just say it is).
That leaves £20,000 PER CLASS
7 classes @ £20,000 reserve = £140,000 reserve PER TERM
£720,000 is then spare each year to cover mortgages, maintaining the grounds, lunch staff, playground assistants, visiting staff members, admin staff and Headteacher salaries.

These schools will not be folding for not taking 1 terms fees - that is a ludicrous statement and wholly erroneous.

Also wondering this

@Alsoplayspiccolo I'm really sorry, I hope he can find something else soon.

RedAndGreen, DH's job went on Tuesday, so we are actually fucked. Not charging us for lunches that DD was never going to be in school for anyway is no help whatsoever.

Do you still want the school to be there in Sept if this is over? Because if parents demand fees back it may well go bust. If you’re ok with that go ahead.

My neighbour teaches at a private school and says their finances sail close to the wind and a lot of private schools are the same.

We so have the fee insurance, but I don't have the policy document, so unsure whether pandemic/epidemic is covered.
It is school that have said no refunds, not the insurers at this point.

I thought we were the only school in limbo as we have had a number of letters from the Headmistress this week but none have mentioned the school fees - it is so annoying.
On the playground today whilst collecting the children, everyone was asking each other what they think is going to happen regarding fees, but we are all in the dark. However, since hearing the Chancellors statement about salaries for employed staff (upto 80% of a salary, capped at a £2500 threshold) will be paid, I do feel full of hope that we will not be billed for next term as the school will be able to defray its biggest expense salary wise. The only challenge with this is, older teaching and leaders will earn more than £3000 a month, the school may still end up having to pay a substantial amount across the entire workforce.

My partner and I are both self-employed contracting in schools (which are now closed) and we don’t think we will be paid, so we are left with all our priority bills and a potential school fees bill for the boys - there is no light at the end of this tunnel if this happens!

I am horrified @RedAndGreenPlaid that your school have said they expect the fees and will not be refunding - absolutely shocking.

This entire situation has shown me how bad things can get! I do think I will be taking our school fee insurance moving forward (if I can still afford to send the children for the next academic year :-()

Ours have already mentioned that next term's fees will be due by normal scheduled date, and no refund for next two weeks will be made.
I know they have to pay their staff, particularly as the staff are all still working. DH said he's worried for his job if this goes on longer than a couple of months. All I can think is thank goodness this was actually DS's final term there, and we opted for state grammar for September. If DH's job goes we're quite frankly fucked.

I have paid for a school with 8-6 wrap around care and all lunches and snacks included. I now get remote learning which is completely unsuitable for my 6 year old who is already struggling with reading and writing and receiving the support of a SENCO. I have to try to work a very demanding job and teach two children at the same time. The school have not even acknowledged the fees issue. I am angry about the whole thing. The teachers’ children can still go to school and they still get their full salary. Meanwhile, lots of the parents have businesses going down the toilet and are are expected to teach their children whilst desperately trying to keep their businesses afloat.

Following to see what other schools do, particularly in light of the retained staff benefit.

Our school's generous offer is to say they won't increase fees in the next academic year and we don't have to pay for school lunches (which they won't be providing) next term...which isn't any use to us, as DD is year 11 and left the school today.

Our school have cancelled direct debits temporarily but has asked anyone who can pay to please do so. I just hope enough people can pay so the school doesn't suffer too much. Will independent teacher salaries be included in the government measures? Presumably so as the school is an employer.

@Frostyskies1223, I understand; a business is exactly that. Insurances should be assessed for suitability and cover levels and cost mitigation that should be part of the diligence, as in any business. The point you make regarding the percentage of turnover is one that needs to dealt with by their own business practice. In my business, my clients are not expected to pay towards the running costs, in any event, including a pandemic; why should any private business be any different? As expected and confirmed, the issue of setting staff aside for the foreseeable future has been dealt with by the Chancellor today. It would be a case of double dipping if any business kept all of the fees. Independent schools are not above any need for open accountability. Whilst they would in some cases, offer e-learning, they would gave to account for the cost of this to any relevant parties affected, including their insurers. Please refer to legal advices available on the internet. Best regards

@Drillerboy , there is no insurance policy that private schools have that will cover this. There is business interruption but if the insurance companies are forced to pay out the amount is only a small % of turnover.

Personally I think the whole pre-prep sector of education could go under by the end of the year. There is only so much you can teach remotely to EYFS/KS1 & the parents have to engage with the child at home. Older children can work on their own following the distance learning provided by the school whilst parents work separately.
The Chancellor's gesture will have helped today, ie coach drivers/kitchen staff who have no role to play for next few months may now be kept on the payroll until school reopens.

We are giving some thought as to whether to give notice. My DH’s firm have already warned they will have to tighten their belt. i had planned to go back to work now we have a second DC in private school but now I am full-time home educator to a five year old. It is being forecast this is going to last for a year. We have to be pragmatic. The world may be quite different in a year. The economy will be destroyed and my DH may lose his job. In the meantime we will have paid a year’s school fees for two DC who are at home. My youngest can’t do much independent home learning. It requires an adult with her, motivating her nearly all the time. I could let her have a few minutes of educational online games or artwork or free play but boredom will soon set in. The school have basically set a big task for the parents to keep up their curriculum. I will do my best of course but I am wondering whether I could be doing most of this without the school as I am effectively a home educator now. We were planning to move house in less than two years anyway so if a year of this will be at home I am thinking we could just accept whatever school is available once the schools return.

With my older DC there is more of a reason to carry on. i think he is getting more of a proper service from the school because he is older and more self sufficient so can follow their online work programme and get the feedback effectively. He may also have to stay put to keep his future school offer valid (I need to check the contract). But really, for my reception age DS private school payments whilst she is at home for a year when we would leave a couple of terms after she returns seems like poor value for money.

Private schools and nurseries will find it extremely difficult to charge full fees for any period that a child's exclusion is mandatory. Furthermore the school will have to arrange for insurance cover. Whilst I understand that parents may feel an obligation to pay to keep the school running, unless there are unreasonable terms within a contract, that could easily be challenged, the school should make arrangements to refund in part at least, the fees. In terms of staff pay etc. government will be responsible for dealing with pay. Clients of any business would not be forced to pay for services not delivered.

We have insurance that is for if children have to miss school... but I've no idea if it covers pandemics!

Our HT has said that school is open for key worker children 8am-6pm as usual with no charge for next few weeks (until normal end of term) and then in the 'holidays' same hours but at normal holiday care rates. (Probably a quarter of children in practice)
They have also provided an enormous amount of work via email.
They're also looking at running the whole of the summer term in full, but with a late start and later finish, as and when the govt say they can reopen to all pupils. They want to minimise disruption for children as much as possible.

Would this apply to childminders too, which are self employed and privately arranged? They have been forced to close. Just wondering.

DCs' independent school was on the ball and sent parents notification of the altered contractual terms and conditions - basically covering pandemics. They will be delivering online lessons via Google Classroom/Meet for the mornings until 1 pm going forward following HK's current solution. Parents need to give a term's notice if they wish to withdraw their child from the next academic year as standard.

Am planning for both DC to stay on next year atm but who knows for sure what the next few weeks/months will bring. If we suffer a drastic drop in income due to redundancy, we'll need to reassess - along with no doubt, the majority of other parents.

Our back up is the local state sixth form for which we have a place subject to lower grade requirements. Not going to worry about it - it's low priority right now - as is Brexit and literally everything else apart from getting through this universal crisis.

@Rosesarere , pay if you can - nurseries have a fixed income from EEF that private schools don't but private schools can distance teach to secure the fees income (in theory) whilst day nurseries can't.

These are unprecedented times surely, and we are all in this bubble together right now. There really needs to be an element of acceptance & understanding amongst us all. While we still have paid salary coming in, and it won’t be for very long if this continues...we will be honouring all our commitments, school fees, peripatetic lessons etc
Forbearance is important at a time like this...

Sorry frosty I don't know how to reply to you, so it wouldn't really make a difference if I paid or not, the nurseries should hopefully still keep going?