Whitehall “braced for private schools collapse” 7

[ICouldBeVioletSky]

Continuation of previous threads discussing VAT on independent school fees. The thread title is a headline from a Times article last autumn.

https://www.mumsnet.com/talk/education/5237575-whitehall-braced-for-private-schools-collapse
https://www.mumsnet.com/talk/education/5242586-whitehall-braced-for-private-schools-collapse-2
https://www.mumsnet.com/talk/education/5280646-whitehall-braced-for-private-schools-collapse-3
https://www.mumsnet.com/talk/education/5301690-whitehall-braced-for-private-schools-collapse-4
https://www.mumsnet.com/talk/education/5317397-whitehall-braced-for-private-schools-collapse-5
https://www.mumsnet.com/talk/education/5337850-whitehall-braced-for-private-schools-collapse-6

These businesses (independent schools) are being mis managed.

If they were being run with the wealthy in attendance there would be plenty of funds available for gifted scholarships for those of means tested background who have been assessed and have earned their funding.

Independent schools are at present a financial free for all! Rife with internal corruption.

Losses, Financial deficit, unsustainable only worth bricks and mortar. A national disgrace!

Most of the outraged posts online stem from faculty as their gravy train RE fee remissions, perks and conflict of interest in Independent schools comes to an end.

parents paying full fees demanding detailed financial transparency moving forward. Staff can pay or leave.

📌

No wealthy person owes anything to some poor gifted student! Mostly gifted students are very much welcomed in the state sector where teachers love to have some able students to set a good example and achieve high grades for the school, to then attract a better crowd and more applications.

As for mismanagement, mostly people who pay fees are free to withdraw their kids and vote with their feet. Those who do not see value in it, hire tutors instead. The tutoring industry and the tech ed sector is a multi billion pound business growing by the day. Plenty of opportunity there for ex private school teachers. This space is really not something any Government will ever be able to control, without simultaneously ending democracy and the right to choose.
You cannot “regulate” or deter the natural instinct of parents to offer their children the best, nor should you ever do that. They are never taking away from other kids nor is it their problem to look after other people’s children or educate them. The constant need to drag everyone down in a globally competitive world for young talent against an ageing demographic is literally a form of self harm. It is as bad as Brexit. British Education has been an asset for centuries that is deserving of respect, not destruction.

Sadly for most

“charitable”

it’s a legal obligation

https://www.pepf.co.uk/wp-content/uploads/2025/04/InvestigatingBursaries_PEPFReport_010425-1.pdf

Trust me a wealthy family welcomes gifted students raising the bar and results of the school and are happy to contribute to bursary. Wealthy people can afford to.

The case sadly is that school funds are being internally misappropriated and mismanaged at a “staff” level.

📌

https://www.pepf.co.uk/wp-content/uploads/2025/04/InvestigatingBursaries_PEPFReport_010425-1.pdf

For staff discounts, Pepper v Hart (1992) - Hansard consulted. Have a read of that. Those are not “bursaries” as such.
Teachers who negotiated and worked based on a particular package are of course going to expect the same going forward. So the VAT has to be found somehow. Parliament had decided teacher discounts is fine and not a benefit in kind. The Labour Party and Parliament are free to legislate at any point on matters for Parliament. That is how our democratic system works.

The problem is that causing division between teaching staff and parents in private schools does not equate to those teachers willingly moving to teach in state schools. Nor does it equate to those parents happily paying more tax either. Humans have free will and that is a bummer. Whenever politicians try to control people via ideology it tends to backfire massively. Especially if they try and control well educated people who hold all the cards.

📌

If the school governors cannot balance their books and manage their-costs as we can see evidenced the close down or merge. The very provision becomes fruitless for wealthy families.

The only schools that can do lots of bursaries are those who can raise multi multi million pound endowment funds that are then standalone and raise the right figure for a fully funded place for bursaries. It is the US model.
And if the Government expects private schools to go begging rich foreigners to donate to such endowment funds it is all rather desperate. Let’s say if you were an Indian billionaire would you donate lots of money to a UK private school or would you set up an entire school in India for the properly poor where state education can be woeful in some rural areas. It is just so desperate for us to assume all these donations will be forthcoming.
And this is also against a backdrop of them expecting vast donations to universities as well.
People need to pay their own way, simple as that.

School contracts were revised to include VAT and annual price hikes 4-8% + to cover their overspending.

likewise employee contracts must be revised given the unprecedented circumstance and climate to remove or significantly reduce staff “perks” The schools can simply not afford it!

You misunderstand.

The staff within these schools all the good old boys and gals and their children are receiving all the funds! (Not the poor) They may get an invitation to a swim in the pool or some old text books. For this reason the charity commission and parents are demanding transparency. Not just bursary but all “assistance” and “discounts” that they like to try and group together.

Cost of living went up - huge energy price increases, insurance costs up significantly, maintenance cost up, building costs through the roof, minimum wage and employers NI up up up. This affects everyone, including private schools. Private schools are hammered by VAT, business rates and the cost of living and people being worried about the economy (applications down).
So I am not surprised if many will close and then Labour will get most of the blame and they rightly deserve it. Especially if there is asset stripping, people losing their jobs and kids in exam years being affected. The kids in exam years is completely and utterly unforgivable and they did not even plan for that! It is completely and utterly shocking really.

No I do not misunderstand @SchoolRunDays - I even told you to go check the case law. Read the case law!

In any event, my kids are in state schools. There is no way I would be driving against their teachers! Nobody is that stupid to let Government induced division destroy them.

But the outcome is evident for all to see.

school closures and mergers and wealthy parents insisting “I’m not paying for poor provision”

Whether legal or not it must be affordable and independent schools are over spending as labour informed no need for annual price hikes or to pass VAT to full fee paying families.

To survive, tighten your belts (internally)

https://inews.co.uk/news/politics/private-schools-make-savings-bridget-phillipson-labour-vat-fees-plan-2651035?srsltid=AfmBOoot-p4jnKUUYWZ53qTNZUHJCKwgumBcHPdefeaYDsXtAls6cqoG

You seem to know a lot and follow Independent education closely for one protesting that their children attend state school.

As literally no-one in Labour seems to have ever run a business I have no idea why anyone would look to them for commercial guidance personally.

Labour say a lot. All of it shite.

@SchoolRunDays - I had one DC who wanted to go to specialist music school just before the VAT came in so I read up about it all. The VAT prevented her from going so she continued in the state sector and joined an even more competitve grammar school than the one she was previously at.
I like facts and figures. I also have nephews and nieces in public schools, a lot of friends and colleagues with DC in the private sector and several friends who are teaching in the most famous private schools. I am also a governor in a state school and have been in many for various years. So yes, I know a fair bit about education and all the bullshit behind the scenes including from politicians.

Also @SchoolRunDays - Bridget Phillipson is disliked pretty much universally and most are hoping for her demotion to the backbenches very shortly so not sure why you are quoting her. She has lost most of her credibility anyway.

I don’t begrudge the teachers at my DC’s independent getting a fee discount. The discounts have been reduced in recent years as the school tries to cut costs which concerns me as I want them to keep attracting high quality staff and fee discounts is one way to do this.

It’s no big secret that many discounts are not means tested. All the private school parents that I know (including myself) understand the difference between means tested bursaries and non-means tested scholarships/awards. Many of the latter are very small but I know of bigger awards particulary for sport especially where it’s clear that the child had a very good chance of making it as a professional sports person. I know of an up and coming premier league footballer who has just left independent school. I would be surprised if his parents didn’t get a healthy fee discount despite them being very comfortable themselves. I can’t imagine any other parents being annoyed about that. They just want their kids school to attract the very best talent.

They'll keep some for their kids, surely?
And none of mine go to private schools, so no personal skin-it just seems awful that kids are being badly affected, people are losing jobs while many politicians who call themselves left-wing have used private education/health/had multiple properties etc.

I am just waiting to witness a lot of private schools welcoming the removal of charitable status because frankly as I said, what exactly does it add at this point to most of them. Nothing at all. And when that happens it will be even easier for private equity to buy them up on the cheap - and this will all be Labour’s fault with their false ideology. And there will be fewer teachers and jobs overall and fewer safe spaces for kids with SEND. This was all entirely predictable.
The worst thing in this country is central government politicians meddling in stuff they do not understand to gain votes. Health and education need to be protected from useful idiots trying to further their own careers who are lacking in any understanding of the sectors they mess with.

Independent school parents want what they’re paying for.

When corners are being cut, co curricular cancelled and results in decline because they simply cannot afford to run the school properly never mind all the “perks”

parents have the right to question and demand to see exactly where the funds are going. Transparency.

Locally the 50% staff fee remission has not shifted (new support funds established to cover their VAT) and parents are furious!

Schools are not in any position to continue with such deficits in their budget. Families won’t just keep paying annual fee hikes to subsidise.

Independent schools will have to be willing should push come to shove to reduce fee remissions and perks abolish non means tested funding for staff or face Mass exodus and the rate of mergers and closures we are seeing today.

Not only are the staff taking liberties financially it’s also an ongoing complaint that paying half and crying they can’t afford the VAT and need more funding! The also seem to run a conflict of interest and unfair hold on taking all opportunities sports captaincy and parts in school productions. Independent school at present is a toxic environment.

once finances are scrutinised bursary, misc. “discounts” support funds. Parents will have a better understanding of whether these businesses are sustainable moving forward and worthy of investment. Or money pits.

@SchoolRunDays - so this is your DC’s school that is being mismanaged? Why did your resurrect the thread?
If it is your DC’s school, find a better school for them, whether state or private.