Lawyers on High Court looking at Charity Commission and fee schools

Members of the UK200Group of independent accountancy and lawyer firms have commented on the Attorney-General’s request for the High Court to look at whether the Charity Commission is acting illegally by making fee-charging schools offer means-tested bursaries to smaller pupils, or face losing their charitable status.

Ian Selwood, Partner, Randall Payne, said: “There are different levels of independent schools, from those with substantial reserves that would be oversubscribed even at rates that allowed them to give bursaries, to those at the lower end of the scale that are struggling to stay afloat.

"I have no doubt that those at the lower end cannot afford and should not be forced to give bursaries. If they are forced into closure this could increase the burden on the state sector.

“Parents paying for independent schools relieve pressure on the state school system and save all taxpayers money. They have to bear VAT on a substantial element of their costs which state schools do not. The pensions for independent schools are funded by the parents whereas for state schools they are funded by the taxpayers. The list goes on.

“Therefore there are substantial benefits to society to independent schools remaining as charitable institutions even if some exclusivity arises because of fee levels. I would support the Attorney General’s position.”

Anthony Harris, director at Critchleys, added: “The whole matter has been politically motivated by those who appeared envious of the high standards achieved by fee paying schools and were keen to try and water these down by some means or another.

“The suggestion that there is no public benefit from fee paying schools is in itself muddled thinking. Every child that does not go to a state run school – i.e. that goes to a fee-paying school – is subsidising the state system by not making the educational demands on the state!

“It is of course right to review this through the courts as it was a divisive attack on fee paying schools. Creating an attitude of ‘if I can’t have it, I won’t let you’ benefits nobody.”