Facing the future

Helen Tucker takes a look at the issues affecting the sector and considers what practical steps can be taken to minimise risk and make sure schools are prepared for the future

The current economic situation and political agenda are presenting challenges for independent schools. Inevitably, the recession has resulted in some parents being unable to continue to pay school fees, and some schools experiencing difficulties in debt collection. A number of independent schools have sought to limit fee increases as much as possible to retain pupils and the goodwill of parents. When schools already operate on tight financial margins, these factors can quickly have a significant impact. In addition, some schools have seen an increase in parents challenging the provision they have received, disputing bills or raising formal complaints linked to a request for a reduction in fees. This can be very costly, not only in terms of cashflow, but also in terms of management time in dealing with any issues raised.

To effectively manage issues with non-payment of fees, schools should ensure robust provisions are in place within the parent contract. Relevant provisions might include those governing the payment of fees in lieu of notice, and the ability to exclude or require the withdrawal of pupils for non-payment or unreasonable parent behaviour. Schools should also ensure that there is a clear audit trail for any communications with parents about fees, both generally (for example, in relation to fee increases), and in individual cases, in particular documenting any discussions relating to non-payment or withdrawal.

Handling complaints
Given the trend in complaints, it is also a good time to review the school's complaints strategy, with a view to minimising the likelihood of complaints arising, and to enable a quick and robust response where they do. This will involve amending the complaints policy and procedures, and training or guidance for staff. A common area of complaint relates to perceived failures in communication with parents, such as keeping parents advised of strategies in bullying, or issues with academic progress.

It is important that all school staff are aware of what issues can turn into complaints (as, in many cases, they are not identified as such at the time), and that they ensure these are passed on to the appropriate person to be addressed. Heads may want to look at the channels of communication, how issues are referred, and who monitors responses. It can be beneficial to have a whole-school approach to how concerns are followed up and addressed, whether these are pastoral or academic. Particular care should be taken in making written records where pupil issues arise, and in written communications with parents, for example to ensure these are factual and objective.

While challenges may exist in relation to fee income, the economic situation could present an opportunity for bursars and finance managers to renegotiate contract terms with their own suppliers of goods and services. Strong management of service schedules will also be important to ensure that any benefits are gained and that the school does not ultimately overpay, for example for catering services. Many schools have also developed their commercial lettings to produce separate revenue streams and maximise the use of their assets. When doing so, it is important to ensure that attention is paid to charity law requirements (for example, in trading), and to ensure appropriate risk assessments and safeguarding arrangements are in place.

Free choices
On the political front, the education landscape has evolved, in particular with the rapid expansion of the academy programme and the introduction of free schools and university technical colleges. The Coalition Government has publicly called on independent schools to sponsor or set up academies and free schools to bring down the alleged barriers between the maintained and private sector.

There are clear difficulties with this proposal for independent schools. Firstly, any school thinking of becoming an academy would need to convince its governors and parents of the benefits of such an undertaking. Parents may well feel that their fee income should be spent on school pupils, or on investment in the school's facilities, and that resources should not be diverted to support another school in which they have no interest.

Heads and governors may also be mindful of the need to be able to continue to invest in buildings and facilities to attract pupils in the future. In addition, there may be a concern that in creating a strong non-fee paying school in their own model, the independent school will lose pupils to that institution in a spectacular own goal.

Your good name
Reputation is also of critical importance in the independent sector, and so not only will it be important to manage communications and keep parents on board, there are also obvious concerns about the negative impact of any failures or significant issues arising at the other school. The counter-position to these arguments is that successfully supporting a school in this way may both raise the school's profile, and attract further interest in the school itself.

In addition, the advantages of collaborations in teaching and learning are well known. For example, such arrangements can provide significant benefits for staff, through providing opportunities for career development and new responsibilities, as well as through being challenged by working with peers in terms of education provision and teaching methods. Similarly, pupils can also gain from the experience of working with their counterparts.

Questions for heads and governors to ask when considering setting up or supporting an academy or free school:
• on a realistic assessment, what resources (such as management time, teaching time, shared resources and facilities, funding etc) can the school put into the project without impacting negatively on provision?
• would that input benefit the other school, or does it need a different type of input?
• is it likely that the school's model for teaching, discipline, and overall ethos would fit? and
• what would the governance arrangements be, and how will this be documented to ensure accountability and responsibilities so that the arrangements are clear?

The idea of working collaboratively with the maintained sector is not new, and independent schools have been doing so for many years in a variety of ways. Schools should therefore proceed with care, as there are a number of factors that will need to be taken into consideration when deciding what forms of collaboration or partnership are most appropriate for the particular school, and how best such arrangements should be established. In particular, where schools are also charities, they must comply with their duties as charity trustees, for example to ensure that the income and property is being applied in furtherance of the charity's objects.
 
Helen Tucker is a partner and head of education for Ashfords LLP. Helen can be contacted on 0117 321 8078 or h.tucker@ashfords.co.uk.

Ashfords LLP is regulated by the Solicitors Regulation Authority. The information in this note is intended to be general information about English law only and is not comprehensive. It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances. 

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