Has the cost of living crisis affected number in your local prep school?

[Tambatamba]

Where I live, the numbers joining in reception are whittling down year on year. The prep that feeds the best performing private high school around here only had 9 joining in reception this year. I know this because my daughter is in the nursery there.

Definitely the case near me. But all the state schools local to me have spaces. There are 2 one form entry (so 30 spaces each) schools very close to each other and one had 9 applicants this year and the other 11. So the same is also happening in preps. In addition of course the COL and labours tax promises are on people’s minds. My daughter went to a prep school nursery but we decided to go state for primary because while we can afford the current fees, we can’t be sure we can afford them if VAT is added at 20%, alongside the usual yearly fee rises. I expect a lot of people are in the same boat as us.

No because schools will be able to claim things back that they can't now. Bursar has said effect on fees would be maybe 5%.

@mycoffeecup No because schools will be able to claim things back that they can't now. Bursar has said effect on fees would be maybe 5%.

I'm struggling to follow this, if vat is chargeable at 20% that's a direct additional cost to the parents so it's bound to increase the overall fees charged. It's the same as a garage charging you 20% for your new car you don't have a choice on whether to pay it.

I think they will be able to claim VAT back on things (?purchases) which they cant now and that will offset some of the rise.

But the 20% vat is payable by the parents unless the school can reduce all their costs including staffing by the same amount then fees will rise.

DS has just left a prep - they were inundated with applications. They are not selective and allocate on a first come first served basis. Last year some children left for whatever reason and the places were always filled - usually within the week. So no we didn't see any sign of it - but it is a very popular school. I think there is another school locally that is suffereing - they are still advertising places on line - even on Facebook

Bursar is wrong.

If they can cut the fees, then yes of course it'll be 20% of the lower figure. But does that mean they are overcharging parents at present? By quite a lot, if they think they can reduce it that far.

Talking about "claiming back on things they can't now" suggests bursar is referring to something totally different - the possible ending of charitable status. That is estimated to be worth £200 per pupil per term - so it sounds as if this school is planning a stealth increase on fees if they are expect to impose an increase well above that.

Hasn't been the case at DS's 3-18 school. There are 23 in his Reception class this year which is apparently a record high. the average is generally 15.

Well I guess in London there are going to be more people for whom money is no object

I thought your comment about financial literacy was genuinely amusing 😁

The falling birth rate is eventually going to impact all schools. It is arguable that larger state schools may be able to adjust to smaller intakes more easily, ie 2 classes per year rather than three. Private schools will eventually become economically non viable if rolls fall too low.

See, I thought that school places were impossible to get. I'm glad the tide is turning. Is this really just about falling birth rate or is it also an impact of Brexit making EU citizens not feel welcome here any more?

My dd will be going to my local state school. Her dad can afford the private school but I certainly can't and if he decided not to pay the fees I'd be stuck.

I've just looked up what the Institute of Fiscal Studies actually said.

It's talking about ending certain VAT exemptions - ie the removal of charitable status and perhaps some other changes (we won't know full impact until exact proposals are laid out, and of course the impact will not be the same on schools which are not charities).

VAT on fees is totally separate from this. So any rise consequent on VAT arrangements on the running of the school will be reflected in fees, which could then themselves be subject to VAT

If a school benefits from reclaiming VAT, it could actually lower fees. So 20% on previous fees might not be what’s charged in future.

I think numbers joining depend on the school and location. 9 registering is not a going concern. The school cannot survive and should either close or merge. I would not use it. Some areas have lots of parents just about affording private education and others are more affluent. The former will suffer.

A poster said schools only let in Dc who are working beyond the NC. Lots of children work in greater depth on extended NC in state schools. It’s hardly that exclusive! Maybe the school doesn’t understand the NC?