Independent School Fees_Monitoring and governance

makinitwrk1

We are trying to make some important decisions about our child's education. They currently attend an independent school, (as this is the only option available to us, to support 2 full time working parents) but we have been hit with a bill that has seen astronomical increases. The increases have been much higher that what was advised and in some cases no notification of some the increased charges at all. We have raised this with the school and are currently trying get the appropriate stakeholders involved in the discussion, but it's tricky to do at this time of year. 

On top of this, we are still trying waiting for clarity around the imminent VAT charges that will be added, so is causing some confusion and stress as to how we will continue to afford this option. Resorting in trying to get our child into the state schooling system. (at very late notice)

So with this in mind, I was wondering if there is any protection and guidance for parents/consumers regarding: fees? 

Like:

Are there frameworks or governance in place to protect consumer rights when parents are paying fees at independent schools. (i.e. is this something the the independent Schools Inspectorate include in their framework?)

Do these schools need to be compliant with a regulation of some sort, that require them transparent with their billing of fees and any other associated charges?

What are the consumer rights around fee increases and notifications thereof? Is there official communication that needs to be sent, within a timeframe?

With the impending VAT charges that will be imposed, one would assume that this would need to be clearly broken down and stated on the invoice? and obviously this will dependant on what the government decide will be VAT chargeable, vs what is exempt.

I wonder if there is anyone with a similar issue or knows if there is a independent schools ombudsman (along with the ISI) that would look at these issues or perhaps plan to include them within the ISI Framework. 

Flugelhorn

seem to remember when my offspring were at a private school the notification of the next years fees came out during  the summer term 

to be honest I think they can charge what they like but of course risk that numbers will drop if the fees get too high

is the actual fees that have increased  or the "extras"? 

Aylesbury_Duck

The VAT situation is relatively straightforward.  VAT at 20% will be applied to fees from 1st January 2025, and any payments for terms or years starting on or after 1st January will be subject to VAT even if paid in advance.  VAT will only be charged for education services but goods and services for the direct use of pupils and necessary for education will be exempt, for example, school meals, transport, books and stationery. 

As for the rest of your queries, I don't think there is any formal structure or rulebook.  Of course the school, like any business, has to be clear with their billing, but I don't think they need to open their books so you can judge how they're spending the money.  At the end of the day, they're a business and you're a customer.  Either of you can walk away if you're unhappy with the other.  The huge variation in school fees across the sector would appear to be evidence that it's a free market when it comes to pricing.  Only you can decide if their pricing represents value.  When it comes to price increases, the school will have published policies around fees and the notice they commit to give of changes in fees.  Are they operating in accordance with those policies?  If not, I assume there is a complaints route, probably to the headteacher and ultimately, the governing body.

Undervalued

Aylesbury_Duck said:

The VAT situation is relatively straightforward.  VAT at 20% will be applied to fees from 1st January 2025, and any payments for terms or years starting on or after 1st January will be subject to VAT even if paid in advance.  VAT will only be charged for education services but goods and services for the direct use of pupils and necessary for education will be exempt, for example, school meals, transport, books and stationery. 

As for the rest of your queries, I don't think there is any formal structure or rulebook.  Of course the school, like any business, has to be clear with their billing, but I don't think they need to open their books so you can judge how they're spending the money.  At the end of the day, they're a business and you're a customer.  Either of you can walk away if you're unhappy with the other.  The huge variation in school fees across the sector would appear to be evidence that it's a free market when it comes to pricing.  Only you can decide if their pricing represents value.  When it comes to price increases, the school will have published policies around fees and the notice they commit to give of changes in fees.  Are they operating in accordance with those policies?  If not, I assume there is a complaints route, probably to the headteacher and ultimately, the governing body.

In most cases they are partly or entirely a charity (legally but wrongly in my view). If so, they do have to publish detailed accounts which can be downloaded from the Charity Commission.

I have nothing against private schools, as such. In fact I went to one and still get their "alumni" newsletters etc nearly fifty years on. There is no doubt the fees have skyrocketed in that time, partly to finance wildly grander facilities and a hugely higher staff to pupil ratio. My fees were just about manageable for my parents at the time but would be completely out of reach now to a similar couple living in the same city with comparable jobs.

Flugelhorn

agree the facilities are a big cost but they are built to attract parents (and pupils) 

I visited one private primary that hired the local village hall  for indoor PE / dance / games, the local cricket club for outdoor sports and  took the kids to the local council swimming pool - they didn't have huge costs in building these places or the responsibility of maintaining them - hence able to keep fees reasonable and numbers are fine 

ThumbRemote

Independent schools are simply a business, and are covered by standard consumer law. There's no specific ombudsman. 

Without more details it's hard to give a full answer, but for fee increases I'd expect them to give at least the same amount of notice that you must give to withdraw a child from the school - probably a term. 

Undervalued

Flugelhorn said:

agree the facilities are a big cost but they are built to attract parents (and pupils) 

I visited one private primary that hired the local village hall  for indoor PE / dance / games, the local cricket club for outdoor sports and  took the kids to the local council swimming pool - they didn't have huge costs in building these places or the responsibility of maintaining them - hence able to keep fees reasonable and numbers are fine 

Admirable but sadly I think only a small minority of private schools go down that route.

As you suggest, many feel bigger and better is the only way forward.

Undervalued

Many years ago there was a supposedly true story of the headmaster of a small private school asking his secretary to send a letter to all the parents saying that regrettably the fees would be increasing by £XXX per annum. 

Unfortunately she made a typing error, missing out one letter "n" in the worst possible place.

One father replied saying "If it is all the same to the headmaster he would prefer to continue to pay through the nose as before"

Hoenir

Flugelhorn said:

agree the facilities are a big cost but they are built to attract parents (and pupils) 

I visited one private primary that hired the local village hall  for indoor PE / dance / games, the local cricket club for outdoor sports and  took the kids to the local council swimming pool - they didn't have huge costs in building these places or the responsibility of maintaining them - hence able to keep fees reasonable and numbers are fine 

Private schools often receive extremely large sums from benefactors that enable them to build specific facilities. 

Flugelhorn

Hoenir said:

Flugelhorn said:

agree the facilities are a big cost but they are built to attract parents (and pupils) 

I visited one private primary that hired the local village hall  for indoor PE / dance / games, the local cricket club for outdoor sports and  took the kids to the local council swimming pool - they didn't have huge costs in building these places or the responsibility of maintaining them - hence able to keep fees reasonable and numbers are fine 

Private schools often receive extremely large sums from benefactors that enable them to build specific facilities. 

indeed they do - but it tends to be senior schools that have the endowments and hence some of the funds for these buildings - having said that fees are always higher at senior schools

Undervalued

makinitwrk1 said:

Are there frameworks or governance in place to protect consumer rights when parents are paying fees at independent schools. (i.e. is this something the the independent Schools Inspectorate include in their framework?)

Do these schools need to be compliant with a regulation of some sort, that require them transparent with their billing of fees and any other associated charges?

What are the consumer rights around fee increases and notifications thereof? Is there official communication that needs to be sent, within a timeframe?

With the impending VAT charges that will be imposed, one would assume that this would need to be clearly broken down and stated on the invoice? and obviously this will dependant on what the government decide will be VAT chargeable, vs what is exempt.

I wonder if there is anyone with a similar issue or knows if there is a independent schools ombudsman (along with the ISI) that would look at these issues or perhaps plan to include them within the ISI Framework. 

To answer your five questions (as best I can)

1. No. Or at least not as far as I am aware.

2. Yes, they need to comply with the same laws of contract and other regulations just like any other business but nothing else (AFAIK)

3. They need to comply with your "contract" (i.e the terms and conditions you agreed to when accepting a place for your child). Presumably they have some provision for fee increases. No business can legally enforce a penalty against you should you break the contract but they can recover their losses (which they have a duty to minimise as far as reasonably possible). So, for example, if you withdrew you child without giving whatever notice you have agreed they can't just keep all the money for doing nothing. They must seek to fill the place but if they can't at the very least not charge you for anything they can reasonably save as a result.

4. Answered by another poster earlier on.

5. Not for contractual matters AFAIK, only for teaching standards, welfare, child protection etc.

Does the school have a parents association or active Alumni (old boys / girls association)?