WEATHERING THE STORM

Recession is the bogeyman under the bed: we know it’s there, we know it bites, we keep hoping it is not going to come out and bite us. How is it affecting independent education - and what should you, as a parent, be doing about it? The short answer, drawn from a straw poll of leading schools, national bodies and commercial experts, is remarkably consistent:“Don’t panic!”

Good schools remain strong and confident. Mary Henderson, Headmistress of Westonbirt, the boarding and day school for girls, says: “The recession has not made a great difference to our school roll. In fact,we are welcoming more visitors to the school than ever before.”

David Lyscom, chief executive of the Independent Schools Council, has the statistics to show that enrolment in independent schools has continued to rise; enquiries through the ISC website were up 25% on the previous year. He notes: “The Department for Children, Schools and Families tell us that they have recorded no great influx of independent pupils into the state sector.”

The reasons for choosing independent education have not changed - indeed they may be strengthened, as recession begins to gnaw away at funding, staffing and facilities in the state sector. And parents benefit as independent schools seek efficiencies in order to hold down fee increases.

The experts are also consistent in their advice to parents who are contemplating independent education. Education is an investment for the long term, whereas recessions are (usually) shortterm. Careful planning can help you to avoid, or at least mitigate, future problems. So take professional advice about your finances; research possible schools thoroughly; be open with them about your financial situation; and if you turn out to need help with the fees, don’t hang back - ask for it!

You might expect schools to talk up their prospects, of course; and the picture is not uniformly rosy. “Some schools have closed,” says Jonathan Cook, general secretary of the Independent Schools’ Bursars Association, “but there is no haemorrhage.” Even in the dark months of early 2009, the ISC lost only a small handful of its 1280 members, and not all to closure; media stories of one closure a week, asserts David Lyscom, are “ludicrous”.

Schools that may be vulnerable are already likely to be smaller and weaker. This is why, according to several Heads, parents are not trading down to cheaper schools. They are going for quality, they are going for the security of schools that are demonstrably well run, and for schools that, as Mary Henderson puts it, have “established themselves as serving a clear niche ... in the marketplace”.

John Claughton, Chief Master of King Edward’s School, Birmingham, notes that sound business planning had strengthened his school’s ability to withstand a recession: “We reviewed our admissions and marketing strategy three years ago; and since then we have greatly changed our assisted-places scheme - all of which has increased applications and strengthened our base.”

This does not mean good schools can be complacent. Jonathan Cook reminds us that enrolment at independent schools typically lags behind a recession by a couple of years, because parents do not want to withdraw children from school - especially if they are in the two-year run-up to GCSE or A level.

Accordingly, Heads are keeping a particularly close watch on new enrolment in the younger years, in case parents decide to ‘save now, spend later’ by using the state system for nursery or primary education, or both. For the early years, parents are likely to be paying for childcare anyway, so the extra they spend on school fees provides good value for money.

For the middle years, Peter Tait, Headmaster of Sherborne Preparatory School, has robust advice for parents. “After 13, pupils are taught subjects. Before 13, they are taught to learn. Don’t sacrifice this opportunity for your children to become independent thinkers and learners.”

This advice will find ready listeners. Recession has not changed parents’ faith in the value of a good education for their children, nor has it reduced their willingness to make sacrifices for it, according to Chris Procter, joint managing director of SFIA, specialists in school fees planning: “Education is the last necessity to go, not the first luxury.”

Questions of cost and value-for-money are thrown into sharper relief in those parts of the country that have academically high-achieving state schools; but, as Jonathan Cook points out, the additional benefits of independent schooling do not disappear in a recession: “Drama, music, sport, social skills... All the reasons for choosing independent schools are still there.”

According to research by the ISC, schools with good extracurricular provision also achieved good academic results. So how should parents ride out the economic storm? “Plan ahead,” is Chris Procter’s response. “Planning has always made sense, since fees rise as children get older. The solutions don’t change just because we are in a recession.”

Angus Cater, chairman and managing director of SFS Group, which offers insurance to families throughout independent education, notes that canny parents are making more use of the discounts that schools offer for payment in advance. These can represent good value for money “as the attractions of deposit rates and equity investments have disappeared”.

Remember, parents, that you are the customer. Ask hard questions to confirm what you will get for the fees. Most schools are charities, so look at their last five years’ accounts on the Charity Commission website to check whether enrolment and income are rising, stable or falling.

Enquire what the school is doing to hold down fees without reducing the quality of what is on offer, or to boost its income from other sources: well managed schools can give you a clear and prompt answer. Schools now expect to be quizzed in this way. Don’t be put off by memories of your own schooldays. “Parents are still in awe of Heads,” says the marketing director of one leading boarding school, “but there is no need to be embarrassed: talk to the Head, to the Bursar, to governors.”“And to other parents,” adds Peter Tait.“You should not just rely on league tables.”

The same goes for financial aid: discuss your situation openly. Schools are increasing the scale of their financial support, most of which is now allocated by means-testing. “It is not just that schools have been prodded by the Charity Commission,” says David Lyscom. “They are responding to signals from the market. Many now offer monthly-payment schemes as well, so that families can spread the cost of fees.”

Financial aid is not only for new applicants. Once you are in, schools will want to keep you, especially through the GCSE and A level years. Be frank with the school about your financial situation; but again, don’t hesitate to ask how the school can help. Peter Tait has increased the funds to help families through a period of hardship, but he takes it as a good portent that “we have planned for more bursaries than have been requested”.

Recession may yet spring surprises on the independent school sector, but the best schools are prepared - and so too are parents who take the time and care to plan ahead.

Martin Horrox advises schools on strategy and marketing. He has many years’ experience of managing external relations in independent schools and in universities.