How Are Independent Schools Managing Lockdown And School Fees?

The wholesale shutdown of education between March and June, since when a partial return by some year groups has been possible, has applied to independent schools as much as the state sector. Public and state schools have been subject to ambiguous and rapidly changing sets of guidelines and requirements, governing everything from social distancing ‘bubbles’ and attendance eligibility, to home schooling support. It’s been a uniquely challenging time for both teachers and parents.

In common with all parents, those whose children attend independent schools have had to grapple with the issues of childcare, home schooling, and remote working – with the added complication of school fees.

How are independent schools managing their finances and the payment of school fees during lockdown, and how are parents affected? This article is a very brief introduction to a complex issue. If you’re affected by this and are concerned about the status of your payments to your child’s school, or the future of their school is in jeopardy, please contact SFIA today on 01628 201043.

Support For Independent Schools

Lacking state support, independent schools are run on a hybrid model charity and business model. As such, independent schools have had all the problems of state schools during lockdown, combined with all the issues faced by charities and businesses. It’s no surprise that many are now struggling financially.

While some staff have been furloughed during the lockdown, most independent schools have continued to provide home schooling support for their pupils and skeleton schooling/childcare for the parents of key workers. They have also had their hands full preparing their schools, which are often small and in historic, closely confined buildings, such as parochial halls, for the staged return of children to full-time education in September.

With the continued obligations of staff wages and operational overheads, and financial pressure surrounding fees, many independent schools will need to plan their cash flow carefully over the coming term.

At SFIA, we can advise independent schools on a range of cash flow management and cost saving solutions, including:

Legal and charitable obligations
Cost saving initiatives
Lines of credit, affordable loans and cash flow management
Assistance identifying grants and trusts from private charitable sources, and access to government support, including the Job Retention Scheme
Help releasing equity funding if required

Are Parents Eligible For Discounts Or Refunds?

The question about whether parents are obliged to, or should, continue paying school fees while their children aren’t attending school – especially if they are under financial pressure themselves – is a thorny one. Many schools are expected to freeze fees for September, and to offer full or partial rebates for fees relating to the summer term. In fact, a sizeable minority of parents have refused to pay their fees, with the result that a lot of schools are in arrears. The approach taken to fees varies from school to school, with some larger schools having frozen fees entirely since Easter, and others offering discounts of between 10% and 50%.

What If The School Is Forced To Close?

Some school closures in the independent sector are a possibility overcoming months, especially if the international pupil intake is hampered in September 2021 by travel restrictions, or the reluctance of parents to send their children overseas. Further potential lockdowns and restrictions on education over the winter also complicate the situation for private education. Our advice is that if you are parents, liaise closely with your school about their plans for the autumn term, but have a chat with an Independent Financial Adviser about contingency plans should your school run into trouble. The same applies if your child is scheduled to start school in September, or if you are looking at an independent school for the 2021 intake. We can help you plan financially for the best education for your child with the highest chance of stability and quality of schooling.

What Is The UK Government Position?

Unfortunately, there is no standard UK government advice for independent schools. Each school is currently making its own choices, while accommodating government guidelines and managing its cash flow. The positive news is that the sector has proved resilient to many crises over the years and is likely to weather this one out too, although there is no denying that many smaller schools could struggle.

If you are a parent or representative of an independent school and would like to discuss your financial position with one of our experienced Independent Financial Advisers, please call 01628 201043 today, or click here to download our free Guide To School Fees Planning.