ISC CEO: Remaining in TPS 'simply unaffordable' for many schools
Julie Robinson, chief executive of the ISC, has warned that increasing financial pressures facing independent schools have made remaining in the TPS “unaffordable” for many.
The number of independent schools withdrawing their staff from the Teachers' Pension Scheme (TPS) doubled in 2024 amid an array of financial pressures including the government's VAT on fees policy. Last year, 177 schools withdrew or partly withdrew from the TPS; the greatest number of withdrawals from the scheme since records began and nearly double the 90 that pulled out in 2023.
Speaking to iNews, Ms Robinson said: “Independent schools have been dealing with a range of financial challenges in recent years, including increases to TPS employer contributions. Now they face an additional triple tax whammy of VAT on fees, the loss of business rates relief, and national insurance rises.
“In these circumstances, schools are having to look at every level of their cost base and make difficult decisions. While the first preference for schools would be to remain in the TPS, for an increasing number of schools, this is simply unaffordable.
“Like all responsible employers, schools will be considering alternative schemes available to them. Teachers are schools’ most valuable resource, and schools will be doing all they can to ensure their staff have fair pay and conditions.”