The Independent Schools Council is a politically independent, not-for-profit organisation representing 1,270 independent schools educating more than 500,000 children. It exists to promote choice, diversity and excellence in education, developing talent at all levels of ability and from all backgrounds.

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Charity Commission ‘on collision course with judges’, ISC warns

12 March 2008

The Charity Commission is on a collision course with judges following the publication of draft guidance on fee-charging and educational charities today, warns the Independent Schools Council (ISC).

Speaking today, ISC Chief Executive Jonathan Shephard said:

"The independent schools sector delivers enormous public benefit, and ISC shares the Commission's wish for this to continue and increase. However, the latest guidance has drifted so far from the law that it comes close to ignoring - or even attempting to reverse - some fundamental legal authorities.

"The role of the Charity Commission is to apply the law, not to create it. Charity trustees need guidance from their regulator that is free from inconsistency, sound in law and workable in practice. The Commission's latest draft guidance falls short in each of these areas.

"In its current form the draft guidance is heavily biased in favour of wealthier charities, which can fund-raise or use endowments to widen access. These charities do a superb job, but are a tiny minority of the charitable estate. Most charities - including schools and retirement homes - have little spare cash. Indications from the current draft guidance are that the Commission does not fully understand this basic fact. It is fair to say that the guidance also contains some accurate statements, but these are lost in the general muddle. The Commission now has four months to sort out the inconsistencies and issue guidance which is legally and economically sound."

-ENDS-

Notes to editors:

Independent Schools Council (ISC)

The Independent Schools Council (ISC) is a politically independent, not-for-profit umbrella body, representing around 1300 independent schools educating more than 500,000 children in the UK and Ireland (80% of all children in independent education). 1,044 of its schools are charities. ISC schools include the well-known boarding schools, though the majority of ISC schools are day schools with strong local reputations. ISC schools cover the entire academic range and take pupils from a broad cross-section of backgrounds, with nearly a third of children receiving help with fees. Overall, ISC exists to promote choice, diversity and excellence in education; the development of talent at all levels of ability; and the widening of opportunity for children from all backgrounds to achieve their potential.

Independent schools and the public benefit debate

ISC would like to emphasise some key facts:

Schools exist to advance education. The Charities Act 2006 affirms that the advancement of education is a charitable purpose
All charities have always needed to be for the public benefit. The Charities Act does not alter the definition of public benefit: it confirms that case law, with its long history of judicial precedent, continues to apply
Trustees of all charities - schools and others - should look at the charitable objects of their charities and decide how to fulfill them. Trustees approaching this task in an open and transparent manner have little to fear
There is no "one size fits all" test. Some charities are well-funded and can do much. Others have little or nothing in the way of spare funds. The Commission needs to take a proportionate approach.
The first review of the public benefit of individual charities will not begin until 2009. Even if a charity is deemed not to be sufficiently for the public benefit, the approach will be to advise and encourage, and to give time for adjustment.
Independent charitable schools receive fiscal benefits - principally rate relief - of about £100 million. They pay back irrecoverable VAT of £200 million. They provide fee assistance and other charitable expenditure of about £300 million. They save the state approximately £2.5 billion by educating 450,000 children free of charge to the state (07/08 DCSF figures show that the average spend per pupil in the state sector is £5,430).

Press enquiries: Alexandra Caish, Head of Press, ISC

Telephone: (office) 020 7766 7060 (mobile) 07885 620713
Email: alex.caish@isc.co.uk