Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Education

Join the discussion on our Education forum.

VAT on fees - will your school help current families who are struggling?

168 replies

rosegoldtoner · 13/08/2024 10:42

I know there has been much discussion on here about this, and I really don't wish to ignite a debate about private versus state and if this policy is right or wrong...but I'm curious as to how your schools are intending to support parents who might be unable to cope with the increase on fees?

My DC's school hasn't yet been clear how large a percentage they will add to fees. It is one of the most expensive day schools in London with an extremely strong charitable ethos which is great. There are a number of pupils on full bursaries - the school's policy has always been that they offer 'life changing' bursaries - offering them to pupils that wouldn't otherwise have a chance to attend the school, rather than supporting families in other ways such as through academic scholarships or smaller sibling discounts, for example.

The school are aware that a lot of families are already pushed to the absolute limit - there was a huge parental backlash a few years ago based on the ever increasing fees, and the school have acknowledged in the face of VAT that many parents are extremely worried and might be left unable to continue to send their children to the school.

HOWEVER, the school seems to be continuing on with their existing bursary policy for new pupils coming into the school - whilst at the same time being unclear as to how they will support existing families who are going to struggle. This seems particularly upsetting when many families have been attending the school for many many years (there's a junior school as well) who might have to pull out their kids at crucial exam stages.

Seems to be the very opposite of 'charity begins at home'? What are other schools doing?

OP posts:
Education79 · 13/08/2024 16:37

edwinbear · 13/08/2024 16:34

@Education79 will be far more knowledgeable than me however, I honestly think the entire thing is a complete mess, and I do feel for the school bursars and SLT who are no doubt working ridiculous hours over the summer to try and come up with some semblance of a plan. Our school haven't said a word to us yet, but I'm quite sure they will, when they have an idea of what they're going to do!

Its a mess, and yes, been in the office today, but we can only model scenarios until the full facts are known.

The policy is cruel, in my mind, to the children, who are being uprooted, moved at formative times, mid GCSE etc. and potentially planted mid year into a different environment which, even if a good school, takes getting used to.

In my mind it should have applied only to new entries and phased in, that would have helped our pupils and parents, and the state schools, who in some areas may be on the receiving end of a big rise in numbers.

Shuttersun · 13/08/2024 16:41

Also, there’s a lot of charity fundraising during the year including a harvest festival collection for the local food bank. I’ll be stopping all charity donations to prioritise paying fees, imagine other parents will do the same

@Cheeseburger27 you go girl!!! Depriving starving families of a few show of food will show em all won’t it. And sort you right out.

Ubertomusic · 13/08/2024 16:48

Shuttersun · 13/08/2024 16:41

Also, there’s a lot of charity fundraising during the year including a harvest festival collection for the local food bank. I’ll be stopping all charity donations to prioritise paying fees, imagine other parents will do the same

@Cheeseburger27 you go girl!!! Depriving starving families of a few show of food will show em all won’t it. And sort you right out.

No need for sarcasm - I had to stop my donations to a local state school, not to "show em all" but simply because I cannot afford it anymore.

Hairyfairy01 · 13/08/2024 16:48

I do agree that schools should help those entering year 11 and 13 morally. However how would they decide which families were entitled to financial support and which weren't? If people have a huge mortgage and expensive car loan etc should they get help rather than a family who took out a much more affordable mortgage and saved for a car?
Children going into years reception - 10 or year 12 should go to a state school if parents can't afford this predicted increase. I'm not sure why other parents who can afford the fees should be funding those that can't? Where would that stop?

rosegoldtoner · 13/08/2024 16:51

@Shuttersun - that is what bursaries should be for, indeed. But it becomes more difficult when it’s a choice between funding children not yet even in a school, and those who are already there…

OP posts:
Shuttersun · 13/08/2024 17:01

that is what bursaries should be for, indeed. But it becomes more difficult when it’s a choice between funding children not yet even in a school, and those who are already there

why does it? If you can’t afford it you can’t attend, it’s a market commodity. You can’t redistribute money from disadvantaged children to top up your already high income. You must see that?

Readyforseptember · 13/08/2024 17:03

Shuttersun · 13/08/2024 16:36

so if you couldn't afford the fees any longer when VAT is added - or even if you could but your child's best mate couldn't - would you rather you/they leave the school at a key stage and entirely new kids join the school on bursaries?

well technically yes, because I assume bursaries are for disadvantaged children not those who are high earners but can’t stretch that far.

That's not actually correct AFAIK, bursaries are about affordability not low income. I know of two working professional households who are overstretched getting bursaries. I.e. they have high outgoings even though they have more than decent salaries so they qualify.

rosegoldtoner · 13/08/2024 17:07

@Hairyfairy01 and @Education79 - thanks. In our school, families who are struggling are asked to provide financial details to the bursar. But inevitably those who do are told they don’t qualify for support because the main priority is giving full life changing bursaries and these have been given to new pupils every year.

I understand the logic but surely the priority needs to change to existing families? I can’t see why a school wouldn’t do that?

OP posts:
rosegoldtoner · 13/08/2024 17:09

I mean, existing families who will have to otherwise remove their kids! Not everyone 😂

OP posts:
Hairyfairy01 · 13/08/2024 17:12

I guess OP because where would that end and who would qualify and who wouldn't? How do they work out one persons affordability against another's? Years 11 and 13 it would be lovely, but I don't see why the school should help out financially for other years. Ultimately it will be other 'richer' parents funding those who can't afford the fee rise which doesn't seem fair either. And of course there's the danger that those who are perceived at being able to afford the increase just made more sensiable choices, in which case why should they be penalised for that?

Ubertomusic · 13/08/2024 17:13

rosegoldtoner · 13/08/2024 17:07

@Hairyfairy01 and @Education79 - thanks. In our school, families who are struggling are asked to provide financial details to the bursar. But inevitably those who do are told they don’t qualify for support because the main priority is giving full life changing bursaries and these have been given to new pupils every year.

I understand the logic but surely the priority needs to change to existing families? I can’t see why a school wouldn’t do that?

As someone mentioned before, it's "woke agenda". I guess top schools need to show they are diverse so they are recruiting new pupils from certain groups.
Just to clarify - we tick a few boxes, not just income, and I was surprised at how persistently we were encouraged by a couple of top schools to apply to them. It felt almost like headhunting. We didn't go for it for various reasons but it made me wondering...

rosegoldtoner · 13/08/2024 17:24

@Hairyfairy01 - maybe there could be some sort of internal benchmarking where assets and income are assessed, just as they do with new bursary applicants? Technically the school offers that already but it seems that the levels would need to change - those who ‘can’t afford it anymore’ don’t meet the low income criteria - they would be expected to say, remortgage their house or take out a loan. But more and more families will now be in that position.

@Ubertomusic - a bit confused by the woke thing! Surely schools would rather want existing able pupils to remain at the school and not have their lives disrupted, over simply wanting to ‘look good’? It’s back to the charity begins at home point…

OP posts:
LittleBearPad · 13/08/2024 17:25

PfishFood · 13/08/2024 15:14

Just another comment. If a parent has their own company (or even a helpful employer), the school fees can be paid through a trading company and (assuming there's no sort of exclusion put in place), the VAT reclaimed through the company.

If the contract with the school is with the employing company, the cost of the fees (including VAT) is included on a P11D form for the employee so they will pay income tax (but not National Insurance) on this. The employing company would pay e'ers NI, but they would do if they gave the same amount as a salary anyway.

If you were to negotiate a salary reduction for the value of the school fees, it would save you the employee's NIC on it, without costing the company any more.

Not a huge saving, but it's a saving, nonetheless.

Anyone believing this really needs to take professional tax advice once the rules are published.

LittleBearPad · 13/08/2024 17:27

Hairyfairy01 · 13/08/2024 17:12

I guess OP because where would that end and who would qualify and who wouldn't? How do they work out one persons affordability against another's? Years 11 and 13 it would be lovely, but I don't see why the school should help out financially for other years. Ultimately it will be other 'richer' parents funding those who can't afford the fee rise which doesn't seem fair either. And of course there's the danger that those who are perceived at being able to afford the increase just made more sensiable choices, in which case why should they be penalised for that?

This already happens when people apply for bursaries. It wouldn't be a stretch to apply the same process to existing children.

Ubertomusic · 13/08/2024 17:31

@rosegoldtoner I agree with you, but politics and common sense don't always go together 🙄

TheMoreItGoes · 13/08/2024 17:36

Are most private schools not charities? If so might they need to keep the bursaries so that they meet one or more of their charitable aims? Losing charitable status might push fees up for the fee-payers even higher than what might result from retaining charitable status and continuing to fund bursaries as the tax situation would be different.

rosegoldtoner · 13/08/2024 17:40

@Ubertomusic - thanks. What do you mean by ticking a few boxes? Our school offers (mainly) full bursaries and they assess that eligibility on a range of financial factors, not just salaried income. Bursary applicants must meet the same academic standards of other pupils - but there are not academic scholarships as such.

OP posts:
StandingSideBySide · 13/08/2024 17:41

Shuttersun · 13/08/2024 16:36

so if you couldn't afford the fees any longer when VAT is added - or even if you could but your child's best mate couldn't - would you rather you/they leave the school at a key stage and entirely new kids join the school on bursaries?

well technically yes, because I assume bursaries are for disadvantaged children not those who are high earners but can’t stretch that far.

Not necessarily.

Bursaries are often offered to students who excel in a certain area so are part of the scholarship and exhibition programme
Schools are different but mainly music and sports.
Some schools offer joint bursaries / scholarships so excelling in two or three things ie music, sports and good grades.
Some offer science, language and maths as subjects.
Most bursaries in the two schools we have had children at are attached to scholarships and exhibitions and many other schools we have friends at are the same

So low income alone is not enough to be awarded a bursary.

StandingSideBySide · 13/08/2024 17:43

rosegoldtoner · 13/08/2024 17:40

@Ubertomusic - thanks. What do you mean by ticking a few boxes? Our school offers (mainly) full bursaries and they assess that eligibility on a range of financial factors, not just salaried income. Bursary applicants must meet the same academic standards of other pupils - but there are not academic scholarships as such.

OP
see my post above.
This is not the case in a lot of schools.
Particularly the big boarding schools ( those are the ones we know of anyway, plus the odd Indi with a small % of boarders )

nervouslandlord · 13/08/2024 17:46

Bursaries are also for talent. Bursaries buy talent into the school. Yes it's charitable, but the schools also get a great deal in that they boost their population with brains and talent.

You won't get a child who is low income and coasting towards 7s at GCSE being given a bursary.

rosegoldtoner · 13/08/2024 17:46

@StandingSideBySide - it’s not how it works in our school - there are not subject specific awards (and I think a lot of London indies are the same - correct me if I’m wrong!) There are music scholars who are given free lessons and a small discount on fees (usually 5 percent).

OP posts:
rosegoldtoner · 13/08/2024 17:52

@StandingSideBySide - would be great to hear if there are any non boarding and highly competitive London day schools that offer academic scholarships, I am not sure I know of any? This is another thing - you think they would want to look after the existing pupils who are on course for be getting all 9s at GCSE/into Oxbridge etc…but the vibe seems to be the majority are on that path anyway, so why reward the particularly academic, even if they need help?

OP posts:
StandingSideBySide · 13/08/2024 17:52

rosegoldtoner · 13/08/2024 17:46

@StandingSideBySide - it’s not how it works in our school - there are not subject specific awards (and I think a lot of London indies are the same - correct me if I’m wrong!) There are music scholars who are given free lessons and a small discount on fees (usually 5 percent).

Music scholars and choristers at ours were given a 40% discount.
The choristers had their 40% paid for by the Cathedral
Some lower bursaries at 10% discount are also offered to aspiring grade 6 musicians
All music lessons are free but they also have to take up a second instrument and play in the Cathedral / School orchestra.
School grades are also taken into account

Sports bursaries are given to students entering senior school that play in at least two first team sports
School grades again taken into account
The same 10% or 40% reduction in fees is offered.

These are just a couple of examples

rosegoldtoner · 13/08/2024 17:55

@StandingSideBySide - but do they offer anything for very academic pupils?

there are no sport scholarships at our school either.

OP posts:
StandingSideBySide · 13/08/2024 17:56

StandingSideBySide · 13/08/2024 17:52

Music scholars and choristers at ours were given a 40% discount.
The choristers had their 40% paid for by the Cathedral
Some lower bursaries at 10% discount are also offered to aspiring grade 6 musicians
All music lessons are free but they also have to take up a second instrument and play in the Cathedral / School orchestra.
School grades are also taken into account

Sports bursaries are given to students entering senior school that play in at least two first team sports
School grades again taken into account
The same 10% or 40% reduction in fees is offered.

These are just a couple of examples

I also note that despite a PP the schools we know of do not require 7s at GCSE for bursaries.
Along with other talents a 5/6 is fine.

Swipe left for the next trending thread