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.

Posted by Lorraine | Filed Under Uncategorized