Impact of VAT on private schools on bursaries

[noodlepoodler]

We are a low income family hoping to apply to a private school with a hope to receive bursary.

With vat imposed on private school fees, are they likely to reduce the amount of bursary students with a view to pass on less strain to the fee paying parents?

Yes

Ask the school? It's their business plan so they should know

I did ask the school, but they couldn't say anything until they have all the information from the government

I imagine many will want to keep bursary money for pupils already in the school whose parents will need help with the increase. Your best bet is to apply for some of the really big, wealthy schools who have more funds in reserve.

Hi, we just started a thread on this point.

Bursaries will be cut, unfortunately. It has already started. Many posters on here believe that state schools will improve with more funding so your child may benefit from that.

My children go to one of the ‘big wealthy’ schools you refer, and bursaries will be cut, I can assure you from first-hand knowledge.

Sorry.

Thanks @EverythingAllatOnceAllTheTime

Could you please post the link to the thread? Trying to decide whether preparing for the entrance exam is now worth it.

I have PM’d you.

Your child should definitely still sit the entrance exam - bursaries will continue I would imagine, but there will be fewer with the bar set higher.

Wishing you the best of luck.

I sort of assumed the way this would work is the big wealthy schools would lose some of the boarding kids that can’t afford 3 or 4 at big fees to the day schools (lower cost) who would lose some to the grammar schools, posher comps and leafy primary schools?

So the big wealthy schools recruit some more international kids and some of the UK students who can’t really afford it just go to ordinary schools?

I guess it might make it harder to get into some of the sought after state schools but then some of the less desirable schools would have some of the middle class kids filter through to them that didn’t get in when their parents can’t afford the house prices in the nicer areas so it will all balance out in 10 or 15 years?

Or have it got it wrong?

Yep it will probably take 10 to 15 years to reach an equilibrium.

I can see that new bursaries will be hugely reduced and that money used to help parents already in the school who can't afford the VAT.

I think so.

Bear in mind that almost 30% of the total private school intake receive some form of bursary, worth almost 1bn.

Its inevitable, sadly.

Op do you know what people on this forum say about people who can’t afford private school should do?

What is your own view please?

DD’s school hasn’t set its position out yet as waiting to see what the government actually does so I would still apply and see what happens.

Ours are in state school so I have no first hand experience of this, but if private schools are going to be under more financial pressure and scrutiny then I expect it to be inevitable that things like bursaries will have to change. Whether that’s less of them with a higher bar set, same number but less generous or anything else only time will tell.

What does the entrance exam entail? Does it incur much of a financial cost?

if it’s knowledge and skills that will be useful to your dc whatever the outcome, and their current school, family and friends can help them to prepare then surely it’s still worth doing. If it’s school specific hoops to jump through, skills that aren’t very useful outside of that setting, with hefty exam fees, tutors etc then possibly not.

Also have a think about what you think your dc will potentially gain from being in a private school and being in a state school. Also for you and any other family members. Pros and cons of both.

Good luck whatever you decide.

Look at Christs Hospital. Might be a good option for you.

I think that's exactly what will happen. The policy will discourage children from lower income backgrounds which is a shame, both for individual children and also for diversity in the schools, but schools will understandably seek to support existing students first, so they have some continuity of education.

The Gov have announced this week that VAT will come in next January.

Legislation is still required and this will set out exactly what will be subject to VAT.

We live in an area where the secondary schools are inadequate or worse.The parents who can’t afford traditional private school fees send their children to online school, which is a third of the price.These are parents who went to sink schools and are doing everything they can to ensure their children don’t have to endure a similar educational experience.

The area with the outstanding schools have secured additional funding for building projects that will expand their capacity. I suspect the better schools will continue to expand, with house prices around there rocketing, whilst schools in disadvantaged areas are left to decline further.

Bursaries for schools with charitable trust status are usually funded by both school fees and donations from alumni /parents of alumni.

Many parents no longer want to pay 100-110% bursaries for new state pupils but kids already at the school whose family have hit hard times or the children of teachers. So you may struggle to get a school (outside the Etons and Harrows) willing to commit to more than 10-20%.

Eg DS’ school is going to remove charitable status soon and so has paused all busaries for pupils not above year 10.

Yes.

Our DC’s school had already stopped the subsidised fees for teachers kids (new hires), presumably in preparation for a socialist government.

FWIW, I have had a message from my son's school today saying that they will not do the usual summer telephone campaign asking existing parents and alumni to donate to the school's bursary fund.

Tragic for those on bursaries, really.

As a former fee-paying parent, I really hope so. We had so many CF on bursaries - going on holidays, upgrading their houses and some self-employed idiots like me on full fees. Private schooling is a luxury which should be paid for by the recipient, not subsidised by self-employed people slogging their guts out. I am glad our school (minor day) listened and decided not to offer any new bursaries, only to honour the old ones.

Have you personally thought to re-mortgage your house, forego your holidays, work several jobs before you ask others to subsidise you?