What are the Government’s proposals? 

• From January 2025, Independent School fees will be subject to 20% VAT – earlier than had been envisaged. 

• In addition, from April 2025, there will be a loss of business rates relief (independent schools up to this date have been eligible for an 80% discount). 

• The legislation is still in draft form and a consultation is underway. The Autumn Budget will provide further details and final confirmation. 

What has Dumpton already done? 

• We have been carefully planning for this possibility for some time and considering all options. 

• The school has no debt and has built and maintained strong cash reserves through growing pupil numbers, prudent cash management, delaying certain capital projects, and other cost controls 

• We have already planned to reduce expenditure where possible – e.g. the installation of solar panels this summer will reduce future electricity bills. 

• We have begun diversifying income streams e.g. letting of facilities and expanding to year-round Nursery provision. 

• It should be noted that Dumpton has not been increasing fees in recent years beyond what has been necessary (perhaps in contrast to many independent schools which have seen bigger increases)  – Dumpton's fee increases in recent years have all been well below the local and national averages for independent schools. 

What decision has Dumpton made about this academic year? 

• It is part of our strategy to support our families and children through any uncertainty created. 

• For this reason, the Governing Body has agreed there will be no further fee increase this academic year  

• To illustrate the VAT impact on termly Dumpton Prep School fees from January: 

• Tuition Fees £5,480 

• VAT @ 20% 1,096 

• Total Payable £6,576 

• Whilst the total school fees are unchanged, Dumpton’s income will be reduced by nearly 20% for two terms. This position is made possible by strong pupil numbers in the school, and through use of the school’s cash reserves, but it is obviously not sustainable beyond this academic year. 

What next? 

• The Governing Body and School Leadership will carefully consider the implications of the new legislation once published, and will use the next few months to assess our own context at Dumpton. 

• Our strategy is to ensure we find the delicate balance between recognising the pressures of affordability on our parent body with maintaining the quality of our education offering.  

• We will continue to diversify income streams, as well as exploring fundraising opportunities for future capital projects. 

• Of course, decisions will also need to be made about how Dumpton can run more efficiently without undue impact on our educational provision. 

• To support our decision-making process, understanding affordability pressures and views of our current and future parents is key. We are therefore asking all parents to complete an entirely confidential and anonymous survey to help us better understand the circumstances of our parents and fee-payers, and to provide important data and opinions into our decision making. 

• The Governing Body will aim to communicate a decision on September 2025 fees in the Spring Term. 

How much are fees likely to increase for September 2025? 

• We would stress that no decision will be made until next term, and there are a range of factors which could influence the Governing Body’s decision - but parents wishing to plan financially should for the time being consider a figure closer to 10% than 20%.