"It sounds like they (outsiders) would be at a considerable disadvantage?”
That’s exactly right, IsThisYourSanderling, in fact, outsiders don’t get a look-in, never mind a “considerable disadvantage”.
To better understand the above, and to save myself from repeating what I wrote on another thread a fortnight ago regarding the same subject, here’s an excerpt:
The two Eton scholarships I mentioned were not quite the same. DS first won the 'Junior Scholarship' at the age of ten - a scholarship specifically designed for state school kids (4 places) - which guaranteed him a place at Eton to go there at the age of 13. He would be pulled out from his state primary school to go to a prep school of my choice (but working closely with Eton and only to one of their many "approved" prep schools). I thought I wanted the local highly reputable Highgate School because it was near me but Eton's immediate reply was, "No - Highgate is not suitable". I was then given a list of some of the UK's (now I know) premier prep schools to consider, both boarding and day. We finally decided full boarding at a top Berkshire prep school.
The 'Junior Scholarship' is now replaced by the 'New Foundation Scholarship' when successful boys go straight to Eton from their state school(s) at the age of 13. Eton don't sponsor the 3-year prep school element any more in order to distribute the funds more widely, e.g. Sixth Form Scholarships, etc.. . .
The 2nd Eton scholarship that DS won was the 'King's Scholarship' when aged 13 just before he entered Eton. This pot of scholarship funds is entirely separate from all other Eton's funding pots - each pot serving a specific purpose it is designed for. Again, the KS itself can be a 100% (or more) scholarship for the boy's entire career at Eton.
As explained above, at least 2 or 3 (if not all 4) of the Junior Scholarship winners would eventually go on to win the KS three years later after having left their state schools to attend prep schools. But since the introduction of the New Foundation Scholarship after having scrapped the JS in the mid-2000’s, none of the NFS winners that I know of to date had won the KS. In other words, nobody from the state sector that I know of got a look-in of the King’s Scholarship.
I remember at the time of the proposal of scrapping the JS, the Master-in-College (Housemaster of the KS’s) and their team were fighting tooth and nail against the powers that be about this new proposal for this very reason – that it would be the end of the road for state school boys as far as the KS is concerned.
”Are the scholarships means tested or more of a status thing for those who can already afford the fees anyway?”
The JS/NFS was/is understood to be a 100% or more scholarship. ‘More’ because winners will be given two sets of uniform and many other allowances e.g. free music lessons, pocket money, etc should there be a need for them. Parents are still given a bursary form to fill but at the end of the day, it’s up to you to tell Eton how much you can afford or none at all as the case may be in which case you’ll be given ‘more’ than the 100% scholarship. There are currently more than 70 boys who don’t pay a bean at Eton!
The KS has a very slightly different rule (maybe Eton knows most winners are well off because they predominantly come from prep schools). Until about 15 years ago, winners automatically get a remission of 50% off school fees; then this was reduced to 25% a few years later; and then further reduced to the current 10%. In all this time at whatever rate the remission might be, the 100% or ‘more’ scholarship as above can still apply whenever there is a need for them. Conversely, wealthier parents are requested to give up part or all of the scholarship if they do not need them and still retain the status of a scholar. The KS is a foundation scholarship for “70 poor scholars” but in modern times, I know of some who live in literally the UK’s most expensive postcodes e.g. Belgravia and surround, etc.