From Financial Times 21 March 2009
A report on the ways in which the recession has highlighted the ongoing debate surrounding escalating independent school fees, and the reasons for consistent hikes in school fees by school business leaders. The report cites the mtmconsulting Independent Education Sector Report 2007, which showed that from 2001-2006 school fees increased by 39% compared with an 18% rise in average earnings. The implications of this are severe for school pupil recruitment, parental satisfaction and school and college business strategy and planning alike.
mtmconsulting’s Head of Research and Strategy, Dick Davison, is quoted in the article as saying: “98% (of independent schools) have no endowments to speak of… This is a critical year, governing bodies will be doing their budgets now. In the 1990s recession there was a sharp drop in the rate of school fees inflation, from 10% a year to 4-5%, although it has since crept up again to 5-6%”.
To see the whole article on the Financial Times website, please click here.
