Home // Insights & Events // Unlocking hidden value and diversifying income in independent education
The Independent Schools Council (ISC) estimates that the UK Independent sector educates approximately 620,000. With the ongoing cost of living crisis, upcoming employment law changes and VAT on fees the industry is facing a number of headwinds.
In fact a report from the Institute of Fiscal Studies issued in July 2023 estimated that the introduction of VAT on private school fees would lead to a 3-7% drop in attendance; with the ISC saying members reported a 4.6% fall in year 7 pupils in September 2024.
Staffing is estimated to represent around 70% of a school’s cost base with energy, food and rent taking up a significant chunk of the balance. The Government are also proposing to remove business rates relief (currently 80% for those registered as charities) from Independent Schools.
The problem facing schools in 2025 is how to continue providing top notch service on reduced fee income; 2025 is fast becoming about doing more with less.
While we can’t help with fee income there are some practical tips private schools can put in place now to unlock hidden value in their estate or diversify income; these include:
It’s time for independent schools to become multi-faceted businesses to unlock the hidden value in their assets. Early adopters will be best placed to navigate the headwinds of 2025 whilst continuing to provide the top tier educational experience families have come to expect from the sector. Those that provide more than the bare minimum will be the ones that thrive. If you need help with implementing these changes effectively or just want to discuss your options then get in touch and lets have an initial conversation.
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This update is for general purposes and guidance only and does not constitute legal or professional advice. You should seek legal advice before relying on its content. Greenwoods Legal LLP is a Limited Liability Partnership, registered in England, registered number OC306912. Our registered office is Queens House, 55-56 Lincoln’s Inn Fields, London, WC2A 3LJ. A list of the members’ names is available for inspection at our offices in Peterborough, Cambridge and London. Authorised and regulated by the Solicitors Regulation Authority, SRA number 401162. Details of the Solicitors’ Codes of Conduct can be found at www.sra.org.uk. All instructions accepted by Greenwoods Legal LLP are subject to our current Terms of Business. VAT Reg No: 161 9287 89.
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