Private schools can't read inflation figures

[roguedad]

Is anyone else getting notices of extortionate fee rises right now? I had been hoping for maybe 1-2% in the light of inflation being zero, but I have just had notices from a Oxfordshire junior and senior of about 5.9% and 6.7% from this year to next. Both letters laden with excuses of course, neither really acceptable.
Those not able to access private ed might well say "serves you right". We have already said that to ourselves so please, no posts stating the obvious.

Of course, it doesn't have to benefit society in the long run, just because it's market driven.

MN164 - Thank you for the interesting stats.

rabbitstew - Well, banks don't call themselves charities and are therefore free to do what businesses do.

Precisely my point. That's why I don't think private schools want to lose the advantage they have in peoples' minds by pretending to be charitable.

It is largely in the mind, though.

We were expected ours to go up 5% but they have been mindful of the current climate and they have remained the same. Not sure if size of school is relevant but ours is small and it is a very close knit operation.

Private schools do run as businesses, not charities. They try to perpetuate themselves for their own sake, not for charity.

rabbitstew - Ah great thanks. Sorry wasn't too sure about your sarcasm at first.

They have to run as business in terms of generating enough income because like all business they have to at the very least cover their running costs and hopefully a bit more to be viable. But they don't have share holders or partners hoping for yearly dividends or owners able to take any profit made for their own personal benefits so in that way they are not running as businesses.

happygardening - If you have some time, try researching Principal–agent problem.

A sensible charity would take into account what the executive team want (e.g. a nice fully heated pool with Jacuzzi next to it which they/their kids get to use), the need of the parents educating their kids there and the educational benefit of those expenses. (note: school are educational charities, not Art or Architecture charities).

Businesses of course are not required to take into account any of the above.

I don't mind it making more money than it generates, and let's face it 2.5 million isn't exactly a lot in the grand scheme of the things. The company my DH works for aims and generally achieves a 30% annual profit. I'm pretty sure schools like many businesses have good years and bad years in terms of expenditure. I also very much doubt that the excess in paying for Dr Townsend to lounge in a heated pool/jacuzzi in his garden every night .
Some on here might be getting their knickers in a twist over this but I doubt many parents, certainly at my DS's school,and others like it could care less, I'm mentioned the accounts we were sent to one mum and she looked completely blankly at me. I suspect few read them. Parents paying for education are primarily IMO looking at only one thing; their DC and the education they receive. Providing as parents we believe we're getting what your paying for and you can afford to pay it I suspect most don't think any further than this.

happygardening - Oh well... we really don't have to worry about the billionaires who don't think twice about spending £5k on a handbag and those on significant amount of bursaries (they are immune for fees increases).

It is the squeeze middle who have worked a little too hard and scrimp and save too much who now see their very hard earned cash eroded away that is the focus here. These too are people who the 'charities' serve - they are not cash cow just because they could afford to trade down from waitrose to Lidl.

"I suspect most don't think any further than this. "
Apparently quite a few such as roguedad disagrees.

"The company my DH works for aims and generally achieves a 30% annual profit. "

And I will have absolutely no problem with schools aiming to make 30% annual surplus if they call themselves XX School Ltd, a business registered in England and Wales/Scotland/NI.

"and its charitable status will be terminated and will be able to join the 'stampede!'"

Its charitable status, if removed, will mean it has to close (unless/until they change the law). Because it need to be sold off, or passed to another charity with similar aims, because that is all the current law permits.

Charitable status is not being kept because it particularly wanted, nor particularly valuable to the school (worth about £200 per pupil per year), but because there is no way in which it can be relinquished/removed and the charity continue in existence.

(Fees are VAT exempt at an EU wide level, btw, for all schools and it is the same exemption which applies to university tuition fees. No-one's going to reopen that one).

The squeezed middle are unhappy because significant rises in fess and small or non existent rises into their own wages combined with increasing house prices/rents means that they can no longer afford schools fees. Putting aside the frequently stated argument often stated on here that state ed is often as good as independent what makes the squeezed middle classes any more entitled to an independent education than the those who have never been able to afford fees? Those who are worrying about the next food bill rather than the next school fee bill?
These "charities" should be serving all in the ideal world, those who need a £1000 to send their DC and those who need the whole lot paid for. But ultimately they cannot serve all because even if they had the money (which the vast majority don't) they are simply not enough places to go around. But this inability to serve all applies to all charities, Save the children are not saving all children, Oxfam are not feeding all who are starving, at the end of the day charities have to work within their budgets.

Mind you, Save the Children are not providing the life of Riley for a tiny number of exceptionally rich children so that they can save a score of children who genuinely need saving, either, are they, happygardening?

hg - Well, Oxfam does not impose quasi involuntary rises on its doners. Donations can be cancelled in a few clicks to cancel the DD/SO. The squeezed middle are not more entitled, but they are not cash cow either.

Back again to the schools, these are education charities, and all fees rise are supposed to have a justifiable and measurable education benefits. I hope to see 6% more A* in OP school in the near future (oh..perhaps not).

meditrina - I suppose they can just alter the trust deeds and incorporate the assets into a Ltd company (and many are already Ltd, but enjoy charity status). Those who changed from indi to academy clearly could do it under current frameworks. I am not sure about those with Royal Charter like Eton - might be a bit more complicated, but if those can change from Indi to Academy by altering the trust deeds, they can be altered to be Ltd.

"I hope to see a 6% rise in A*'s in OP's school"
I suppose it all depends what you're paying for
So if having read back over people's various views in summary and assuming I'm understanding this right the general feeling is that school fees shouldn't rise higher than inflation to enable the middle classes to able to pay for their DC's to attend because they "genuinely need" too unlike of course those who struggle to even pay for food. Or if fees do rise then the increase should go towards bursaries so that MC parents can send their children and definitely not too help the exceptionally wealthy with children already at the school who fall on hard times, their children should leave the school and move to the state sector where hopefully their parents will channel all their drive and ambition into improving the school for their children and future generations (I think not). School ideally though should also not increasing school fees higher than inflation but still some how generate enough money to be able to offer substantial bursaries to those who are financially on the bottom, hopefully raising this money by reducing staff numbers although maintaining the same calibre of staff, not building new building or upgrading others and definitely not installing Jacuzzis and swimming pools in heads gardens. Also raising money for bursaries from grateful alumni/current parents both of whom will be delighted that current pupils will be asked to leave the school if they can't pay!
I appreciate that for some this is more appealing than fees being so high that only exceptionally rich can pay but I suspect many would be uncomfortable with this.
Just to add I don't know what the solution to the bursary thing is. To be "needs blind" you need substantial money in the bank, I suspect most schools even if they wanted to become "needs blind" are never going to have this kind of spare money in a million years.
I also do feel sorry for those who wish to send their DC's to independent schools for whatever reason and can't, the vast majority of my colleagues, all MC professionals can't afford fees but nearly all say if they could they would. I do know it's not just increasing school fees that have priced the MC's out of independent ed, house prices and rents have risen higher than inflation, in our nearest frankly hideous large town (by large I mean a pop over 100 000) prices are in fact are predicted to rise faster than almost anywhere else In the whole country in the next five years meaning families will require larger mortgages at the expense of other things including school fees.

HG re I mentioned the accounts we were sent to one mum and she looked completely blankly at me.. Perhaps because they had n't received them, we certainly did n't get any accounts with the fees letter. Perhaps they recognise your position of influence

Didn't you get them last year or was it the year before? I can't find them now and time goes so quickly. Not with the bill but separately. It was an annual report thing. I think we've had it twice at least. You know the warden, the head, the bursar etc all writing but about the school.

I don't know about you summer but I struggle to imagine Dr Townsend and family lounging in a heated swimming pool/jacuzzi every evening after school built of course with this years fee increase.

Well since we have no recollection of the accounts despite probably getting them previously illustrates the point that we are aware that the school is not lining its pockets and may well be running at a loss not least because of the legacies of very old buildings and maintaining a boys' choir.
The more ruthless approach to fee inflation by some schools is either trying to make up a deficit or increasing the margin for bursaries or capital projects or recruitment of teachers.
Perhaps parents at schools such as the OP's should be allowed a vote to choose between say a proposed new sports centre or capping fees.

"I suppose it all depends what you're paying for "

If the DC are 6% happier, that will do it too.

Sorry HG terrible intermittent connection hence cross posting at the image you have created.

Sorry HG terrible intermittent connection hence cross posting at the image you have created.