Richest schools give least of their income to bursaries

Richer, more prestigious independent schools devote less of their funds to bursaries for students from disadvantaged backgrounds than those that are smaller and less high-attaining, new research published today suggests. Academics studying the accounts of 348 private schools found that more than a quarter offer less than 5% of their total income in "fee remissions" – scholarships and bursaries. And although schools were setting aside an average of 7.8% of their income for to pay fees for students – an increase since 2000 – only half of this was going on means-tested bursaries for poor families. The rest went towards scholarships, often given to the children of families that could afford to pay, the Sutton Trust, which commissioned the study, said. Researchers from Staffordshire University's institute for education policy research found that the most prestigious schools – those ranked between one and 70 in a league table published by The Times – spent on average just 4.3% of their total income on financial aid for poorer youngsters. Schools that ranked between 211 and 280 set aside 7.2% of their income for bursaries and scholarships. "A plausible explanation of this is that schools that are higher up the ranking have more market power and can attract not only the number of students they want, but also the ability of students they want, without having to offer as high a level of fee remissions," the report said. While those that devoted 6% to 8% to bursaries had an average income of £8.2m, the income of those that spent just 1% to 2% was an average £10.4m. The report also said it was "striking" to find that the proportion of fee remissions that went on bursaries at faith schools tended to be lower, "sitting uneasily" with the commitment to public welfare they often stated among their aims. Under new rules, private schools must prove they benefit children who cannot afford their fees in order to keep their charitable status – and the tax breaks that come with it. Last year, two prep schools failed to meet the "public benefit test" after the Charity Commission ruled they were not providing enough subsidised places. The Commission announced last month that the two schools, among the first to be assessed, had now met the test by increasing the number of free places they offered. But the Sutton report says more government intervention may be necessary to press schools to improve social mobility. It found that most independent schools did not publish the criteria for awarding bursaries on their websites, telling to families to speak to the school for further information. This could disadvantage families from less articulate homes, the researchers said. The figure spent on fee remissions, taking into account net income from fees only, was 8.8% – up from 6.6% in 2000. Sir Peter Lampl, the chairman of the Sutton Trust, welcomed the increase, but said progress was unevenly spread throughout the sector. "It is concerning, for example, that the most prestigious private schools – which offer their pupils exceptional life chances – appear, on average, to be doing less to widen access than their lower-attaining counterparts," Lampl said. "While partnership and community work are important components of public benefit, bursary provision is perhaps the most effective way independent schools can boost social mobility." Professor Peter Davies, who led the research, said: "Independent schools would improve their case for creating public benefit if they were more open about the criteria they use for awarding bursaries – following the example of the few who currently publish these criteria on their websites." The Charity Commission had an important role to play, he added. The Independent Schools Council (ISC), which represents around 1,200 private schools, said it believed the Sutton Trust research was flawed. The body's head of research, Rudolf Eliott Lockhart, said: "Contrary to the Sutton Trust's report, and using a larger sample and data which is both fully up to date and consistent, we have found no correlation between bursaries and a school's ranking or revenue. "This conclusion should not surprise anyone with knowledge of this extremely diverse sector. Bursary provision will depend on many factors, not least whether the school has endowments available to it to make generous provision, and the costs involved in operating the school." Lockhart added that it was wrong to see bursaries as the key to public benefit and social mobility. A spokeswoman for the Charity Commission said: "The provision of subsidies or bursaries is only one way in which independent schools that are charities can further their charitable purposes for the public benefit. All activity that charities do in furtherance of their charitable aims for the public benefit is taken into account, which for schools could include sharing facilities, teaching or materials."