charity rules could cause independent schools to increase fees

There are fears that the Charity Commission's new public benefit rules could lead to increased school fees, as independent schools struggle to afford to meet the Commission's requirements.

Under the new rules, independent schools will no longer be entitled to charitable status automatically, and will instead have to prove that they provide a benefit to the public in order to qualify. This is the so called 'public benefit test'.

Last year five charitable independent schools were reviewed by the Commission by way of a trial. Two of the five however failed the public benefit test and since then, both have had to show that they provide a public benefit and deserve their charitable status. One method of providing a public benefit is by dramatically increasing spending on free and subsidised places, as both schools have done. St Anselm’s School in Derbyshire has pledged to triple the number of full bursaries and Highfield Priory in Lancaster plans to reduce fees for nearly 7% of their pupils within five years.

School leaders have warned however that many independent schools will be unable to follow suit without simultaneously increasing costs for fee-paying families, and therefore reducing the number of local families who can afford to send their children there. St Anselm's School and Highfield Priory have indicated that the extra cost of their free and subsidised places will be met by fundraising, although smaller independent schools may struggle with this extra burden, many already operate on very tight margins.

For further information, contact Elizabeth Davis in the Charities group on 023 8085 7011 or email elizabeth.davis@bllaw.co.uk.