Responding to VAT: A Five Year Plan for Fees
1st November 2024
In response to the Budget on 30th October, where the government confirmed it will impose 20% VAT on independent school fees from January and higher business rates from April, Heritage School is today confirming that fees inclusive of VAT will rise by only 9% from January.
A position of strength
Since it was established in 2007, careful financial management has ensured that the work of Heritage School rests on a secure financial footing. This enabled the school to purchase Panton Hall in 2018 and its Brookside site in August 2020. At the start of this academic year, unrestricted cash reserves are healthy and pupil numbers are at their highest since 2017-18.
As we face these unwelcome challenges, we take courage not only from the strength of our financial position, but also from the growing recognition that Heritage School is unique. Parents cannot get what we offer elsewhere.
This starts with the fact that Heritage has a unique vision inspired by and anchored in the Christian tradition. Our recent ISI inspection report recognised that Heritage has, ‘a clear shared vision’, and that, ‘this well-articulated vision is expressed in all aspects of school life.’ Because of our size, Heritage also has a unique ability to care for its pupils. According to inspectors, ‘Leaders know their pupils very well, and ensure that the provision meets their individual needs.’
Inspectors identified many unique aspects of our offering:
- ‘The curriculum includes substantial study of art, music and poetry.’
- Pupils, ‘demonstrate advanced listening skills in using the technique of narration.’
- ‘Regular nature walks… enable them to make sophisticated connections.’
- Our ‘knowledge-rich curriculum… gives pupils a learning experience which is highly effective,’ and
- it ‘effectively develops the habit of attention.’
Recent coverage in The Sunday Times underlined the fact that Heritage School is one of a kind: ‘Heritage School – thought to be the only screen free school in Britain – has become a pioneer of the type of education that many parents are desperately seeking for their children.’ They recognised, too, that our academic outcomes are ‘the second best in the city’, adding that, ‘last year, 74% of GCSE results at Heritage were scored 7-9, against an average of 22% in England.’
A Five Year Plan for Fees
Although Heritage is in a strong position, Trustees are conscious that, like other small independent schools, our community is at greater risk from VAT and higher business rates than larger and long-established independent schools. Trustees have sought, therefore, to respond with maximum sensitivity to parents within the bounds of responsible business management, which includes a commitment to wages that enable us to attract the high quality staff who make Heritage so special.
Toward that end, Trustees have agreed the following Five Year Plan for Fees so that existing and prospective parents can plan carefully. The percentages listed on the table below refer to fee rises inclusive of VAT at 20%, with our current Autumn Term 2024 fees as the baseline.
| Five Year Plan For Fees (inclusive of VAT) | ||||
| January 2025 | September 2025 | September 2026 | September 2027 | September 2028 |
| +9% | +6.5% | +4.5% | +3% | +3% |
Further to the Budget on 30th October, we can confirm that a 9% fee rise inclusive of VAT at 20% will be applied from January. Fees reflecting this change have now been published on the fees page our website. Fee rises for 2025-26 and beyond are indicative, and will be confirmed in the usual way before the end of the Spring Term preceding the academic year in question.
Trustees are committed to keeping Heritage as affordable as possible for middle income families. Alongside fee rises, other measures will play an important role in our response to forthcoming challenges, including VAT reclaim, cost savings, and fundraising, with support for bursaries as our primary objective. Trustees are confident that the measures we have put in place will enable the school to meet the challenges ahead successfully.
The value of a Heritage education
We understand that the cost of a Heritage education is a significant investment for families, and we deeply regret that the government is making it harder to access.
It continues to be our conviction, however, that a Heritage education is worth it. We have seen its far-reaching impact. In our Infant and Junior Schools we are laying strong foundations with respect to personal and academic development through our small class sizes and our uniquely rich curriculum. Building on these foundations, our Seniors are achieving outstanding academic outcomes. More importantly, they are emerging from Heritage settled in who they are and well prepared not just for further education, but for life.
We invite prospective families who may need support to learn more about our means-tested bursaries.
Thank you for considering becoming part of Heritage School.
