When a private school closes, condolences pour in from headteachers at nearby schools.
But behind closed doors, some see it as an opportunity to scoop up new students and, in turn, secure their own future. They lure in panicked parents with reduced fees, free uniforms and the chance for their child to go abroad.
It is a brave new world for the struggling sector, which was once united against the common goal of battling Labour’s decision to levy 20 per cent VAT on fees.
As the dust settles, private schools are increasingly turning on one another in a battle for survival.
The sudden closure of Chase Grammar School in the West Midlands just before term started in September 2025 came as a surprise to Nicholas Pietrek, headmaster at the nearby Stafford Grammar School. But after the condolences came the practicalities.
“They closed, and we were – I don’t like to use the term necessarily – but a beneficiary of their closure,” he said.
The school, where annual fees, including VAT, range from £10,000 to £19,000, picked up 20 students. “That boosted our own position,” added Pietrek.
He predicted that more school closures and a “consolidation of the market” are underway, with fewer pupils in private school education overall and more children moving into an “overstretched state sector”.
Cut-price fees and study abroad
Some schools have offered huge cut-price fees via bursary and scholarship schemes in a bid to fill all their places, sector insiders said, while others have provided non-financial incentives such as study-abroad experiences.
The Independent Schools Council’s (ISC) census, released in May, found that more than a third of pupils at ISC schools now receive some type of fee assistance, with the average means-tested bursary worth £13,852 a year – an increase of 7.3 per cent compared with 2024.
Separate analysis by The Times, published in December, found that nearly a fifth of independent schools cut spending on bursaries and scholarships in the run-up to Labour confirming the VAT rise on fees.
Pietrek said some schools have “gone much further in what they’re offering” – with parents paying “less than half the fees to go there”.
But he warned that this has put schools under “additional strains” and even led to closures as schools have less money to pay for the same teachers and facilities.
Suzie Longstaff, the principal of London Park Schools – a group owned by Dukes Education – said they are looking into partnerships with international schools so that pupils can “study in a foreign country for a term” while paying the normal school fees of between £17,000 and £34,000 a year.
Cranleigh School, in Surrey, has introduced a new option from September 2026, called “day plus”, where pupils can have every meal at the school, partake in all evening activities until 9pm and board one night a week if they wish.
The “day plus” annual fee has not yet been announced, but it is likely to sit somewhere between the £57,390 cost of boarding and the £46,800 day fee. The school also offers a 20 per cent discount for the third sibling and a 30 per cent discount for all subsequent siblings.
Schools fighting it out
Pietrek said there is a “healthy competition” for students in his corner of the West Midlands.
But he suggested turf wars could be “much more cutthroat” in areas such as the home counties, where there is a higher density of private schools that are “vying absolutely for the same children”.
“They will not all be able to survive, and therefore they will be fighting out a little bit more aggressively against one another to try and secure pupils into their schools.”
There have been several high-profile school closures since Labour’s decision to levy 20 per cent VAT. Headteachers have blamed the Government’s rushed imposition of the tax mid-way through the school year, meaning schools have been unable to absorb the costs, while parents cannot afford to take the hit either.
But questions have been raised over whether these schools would have closed regardless of VAT.
Private schools consultant Neil Roskilly, who ran the Independent Schools Association from 2010 to 2021, warned that blaming the levy for financial problems is a “lazy excuse”.
He said the falling birthrate should not be underestimated, with private prep schools having to “work hard and up their marketing spend to just maintain their current numbers”.
“Governors haven’t questioned what are obvious structural weaknesses in the past, and are now hearing that it’s all down to VAT,” he said. “It’s a lazy excuse.”
The non-dom parent exodus
Aside from the post-VAT landscape, another issue is the exodus of non-doms – wealthy individuals who, until April, had been allowed to live in the UK but avoid paying tax on money earned outside the country.
The Government’s decision to abolish the centuries-old system triggered the departure of high-net-worth individuals.
“VAT was such a significant factor on its own, but it’s coming in a storm of other factors,” said Longstaff, of Dukes Education, at the recent Schools and Academies Show – a gathering of school and education leaders.
London schools have been “very badly impacted” by the exit of “non-doms”, she said.
“I run quite a lot of central London private schools which have seen a lot of international parents leave,” Longstaff said, adding that there has been a rise in interest from Turkish and American families but a drop in parents from other countries.
She continued: “As well as that, the birth rate is falling. At the same time, our families are all facing a cost-of-living crisis. So there’s a storm of factors.”Joanna Fox, head of Harrogate Ladies’ College – soon to be renamed Duchy College from September 2026 – added that the “big challenge” has been international recruiting as families do not want to pay tax to the British Government.
“I just came back from a recruitment trip to Hong Kong, and all of the agents are saying the parents do not want to pay 20 per cent [VAT] to the British Government, and I think that is a real challenge for us.
“They’re looking to Australia and Canada, where it’s cheaper, and they can get a similar education.”
Fox added that international parents can be “put off” by the arduous process of applying for a UK visa, which she said creates another “barrier”.
Private schools’ ‘slightly underhanded’ tactics
This multitude of threats has forced a reset of the market, with some schools merging, others closing and those that remain open reaping the rewards.
Some schools have decided against mergers, though, instead saying that “if some of our rivals go out of business, that’s actually good for us”, Andrew Lewer, a former Tory MP and author at School Management Plus, told the Schools and Academies Show.
“I think that there’s a genuine sense of sadness when a neighbour closes, but it would only be natural for some schools to see this as an opportunity in the current economic climate,” added Roskilly.
“It’s always interesting to see heads reach out to their less fortunate brethren on LinkedIn, offering condolences and, of course, offers to re-home pupils,” he said.
After Chase Grammar announced its sudden closure, Pietrek, of nearby Stafford Grammar, shared a post on LinkedIn expressing his sympathy – and urging affected parents to “get in touch”.
Stafford hosted an impromptu open evening for parents looking for a new school, and gave tours the following week.
Pietrek had been caught off guard when Chase expedited its closure. The school had been due to close at Christmas, but parents were told just before the summer term that it would not be fully reopening, giving them little time to find a new option.
Chase’s sister school, Abbotshome, swooped in, offering significantly reduced fees, free transport and uniform, the same GCSE and A level courses and even the same teachers.
The catch? The school is an hour away from Chase, whereas Stafford is just 20 minutes.
Though Stafford got 20 new students, Pietrek said the last-minute closure and transfer was done in a “slightly underhanded way” as it gave some families “no choice but to go to the sister school, which was an hour’s drive away”.
“That was their way of carrying over a larger number to that other school,” Pietrek added.
A spokesperson from Abbotshome said the decision to close Chase was made before the start of term to “avoid the much bigger disruption of closing mid-year, especially for Year 11 and 13”.
“Over the summer, we met with parents, ran tours, contacted schools on their behalf, and made sure every child had a suitable option,” Abbotshome continued. “Some parents told us they were worried about the standards of other local schools, so it was important that we could offer real support.”
“We’re really proud we could help the pupils through a difficult time and have had a really positive response from parents,” they added.
Rudolf Eliott Lockhart, the current CEO of the Independent Schools Association, said the introduction of VAT has “caused issues for both schools and parents in terms of affordability and administration”.
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“Each of our schools’ circumstances are different and they will look to adapt in ways appropriate to them and continue to provide a quality education for their pupils in a far from favourable economic and political landscape,” he added.
Julie Robinson, chief executive of the ISC, added: “Independent schools remain committed to providing high-quality education for their local community and beyond.
“Many have restated their commitment to providing life-changing bursaries as well as continuing their valued partnership work with colleagues in the state sector.”
A Government spokesperson said: “The Office for Budget Responsibility’s (OBR’s) Budget report shows that ending tax breaks for private schools will raise £40m a year more than initially expected to help fund public services, including supporting the 94 per cent of children in state schools to achieve and thrive.
“While, on average, around 50 mainstream private schools typically close each year, due to reasons including financial struggles and school standards issues, private school pupil numbers remain within historical patterns seen for over 20 years – 106 private schools have opened between 1 September 2024 and 31 August 2025.”
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