Lower pupil numbers for independent primary schools in Scotland/Festival of Education

April 28, 2010

According to Government statistics, pupil numbers in primary one in the Scottish independent sector have shown a drop of 7% in the last year.

An article in The Scotsman today points to parents ‘holding off’ on placing their children into the independent sector and taking on a financial commitment in the region of £7-£9k per annum.

Whilst the article is based on Scottish statistics I think it’s safe to say that there is a similar pattern emerging in England and Wales and this is set to continue into the 2010/11 academic year.

Anecdotal evidence suggests that at the nursery, pre-prep and prep levels numbers for the next academic year look ‘light’. Senior schools seem to be less affected as parents are more prepared to pay for independent education once their child reaches senior school age.

Interestingly, some of the larger and more traditional schools are reporting growth in numbers, many with waiting lists. They seem to have an immunity to the issues affecting the rest of the sector.

Finally, I was delighted to see information on the new Festival of Education with the inaugural event being held at Wellington College, Crowthorne, over the weekend of the 3rd and 4th July. The prospect of a debate between Germaine Greer and Kelvin Mackenzie (The Sun) makes me think the £35 ticket price will be excellent value!

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If it’s good enough for Tesco……

April 20, 2010

Supermarket giant Tesco announced their annual results today posting a 10% increase to £3.176bn despite a declining overall market.

Their success was, in part, down to strong relations with their suppliers and joint purchasing using the group expertise and scale.

All of this is perfectly achievable in the independent school sector through good supplier management, a focused procurement strategy and collaboration with other local schools to leverage better pricing from suppliers.

For further information on advice in these areas please contact Lorraine Ashover at lorraine@minervapcs.com.

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School fees to rise above inflation.

April 15, 2010

A slightly misleading headline in The Times earlier this week as many schools have not yet decided on the level of fees for the next academic year and, for those that have, there are several who have kept fees at or below the inflation rate.

As someone whose own child is in private education I have a great degree of sympathy for those parents who feel schools should give more consideration to what is happening as a result of the economic downturn. However, having worked as a bank manager for independent schools for many years I also have the benefit of seeing things from the perspective of the school and in particular the bursar.

Trying to balance the needs of parents, pupils, teachers and Governors, whilst also being mindful of what your local ’competitors’ are up to, is an almost impossible job.

The article rightly states that much of the increase in fees relates to the teacher’s salary rises which, unlike the usual world of business, seem to be almost guaranteed in order to keep pace with teacher’s in state schools. This coupled with increasing utility bills are the main drivers of rising fees.

Luckily for me the school my daughter attends has managed to keep the fee increases in line with inflation. I thought the letter from the Chair of the Governors summed up very eloquently the difficulty on setting the fees for the forthcoming academic year:

“…..it will not come as a surprise to you that it was without doubt one of the most difficult meetings the Board has held.”

“The challenges ahead over the next 12 months are considerable. With a General Election looming and the continued fragilty of the UK economy, it would be a brave person who is able to predict where the country will be in a year’s time”

“…..overall fee increases are almost neutral in relation to the general level of inflation in the UK because of a concomitant and rigorous programme of cost reduction throughout the school.”

In order to minimise or eliminate future fee increases, or use those increases for improvements to the school infrastucture, it is absolutely essential to have a meticulous focus on reducing costs. This should include a one-off exercise looking for ‘quick wins’ but must also be part of an ongoing strategic plan to consider alternatives for external suppliers and amendments to internal processes.

All of this takes time, something which the bursar is always short of. So let us take that burden away and help you to be the one to announce news on fees that all your stakeholders will be happy with.

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DCSF confirms efficiency savings of £1.1bn

April 1, 2010

Following on from last week’s budget the Department for Children, Schools and Families has confirmed that it will be looking to make £1.1bn of efficiency savings. This is part of the Government’s commitment to making £11bn of savings a year across all departments by 2012/13.

It has been suggested that as much as £650m of savings can be achieved through greater use of collaborative procurement by schools. There will also be the opportunity for many primary schools to benefit from a shared School Business Manager (bursar).

In essence this is exactly what we at Minerva are looking to do in the independent sector. By setting up local buying groups this enables schools both large and small to benefit from more favourable pricing that can be negotiated due to volume orders.

If you are interested in learning more about this, including assistance in setting up a local buying group in your area, then please get in touch with us.

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