The clock is counting down to the next general election and the headlines are already swirling with speculation of the impact a change in government could have on independent schools’ finances, including school fees and VAT.
You’ll no doubt be aware that Labour have proposed removing charitable status for independent schools, as well as introducing VAT on fees as part of their broader policy of increasing funding for public education. While we’ve heard these rumblings before, there’s certainly more noise this time around and some clearly concerned parents and education establishments, with a survey from the Independent Schools Council (ICS) suggesting an exodus of up to 20% of pupils.
For us marketers who know our audience, this doesn’t feel unrealistic given that the make-up of independent school families has really changed over the years. Many independent school families are now made up of two working parents who have cut holidays, a house move or even ditched the second car to afford their child’s education. A rise of 20% on top of already stretching fees is just not viable long term for many families. This potential loss of vital income for many smaller schools could leave them facing a very uncertain future.
So how do you as a school marketer or admissions professional play your part in navigating something that’s still just speculation, but one with potentially big consequences? In this blog, we will discuss six tips for how marketers can help to mitigate some of the risk associated school fee and VAT.
1. Plan for the future. Don’t wait!
The maximum term of a Parliament is five years from the day on which it first met (Tuesday 17 December 2019 to be correct) and so it will automatically dissolve on Tuesday 17 December 2024, unless it has been dissolved sooner. So that only gives a maximum of 19 months – that’s not long! You need to start planning for what the future ‘could’ look like now and map out campaigns that support retention as well as growth. A healthy admissions pipeline now doesn’t mean it will stay this way, so contingency planning really could make all the difference.
2. Understand your numbers
Do you know how much it costs to recruit a pupil? What would a decrease in pupil numbers look like? How many more places would you need to fill on top of natural attrition should the worst happen? Some of this financial modelling may already have been done by your finance team, but it’s important that marketing and admissions teams have a real grasp of the numbers and plan their activity based on a worst-case scenario.
3. Champion the power of marketing
We’ve all been there. The budgets need to reduce and what’s the first thing that usually gets trimmed? Yes, it’s the marketing spend. However, now it is NOT the time to reduce efforts here and you need to make that loud and clear. If anything, you need to double down on your efforts and increase your spend on proven channels. A lower marketing budget can result in less brand awareness and recognition, which could impact your school’s reputation and long-term success. Without consistent marketing efforts, families could forget about you or choose a competitor school instead.
4. Articulate the value of the independent offer
When we work with schools on brand strategy, we always advise them that no school has a truly unique selling point (well, not one we have come across) given you largely have a very similar offer to three schools down the road. However, when we’ve spoken to a cross-section of stakeholders during the research phase, there are plenty of differentiators that you can leverage in your communications – see our success story for Banstead Prep School.
No one is here to bash the efforts of the state sector, but the reality is that there are some things that only independent schools can offer. So now is the time to dig deep and really focus on what makes you different, what the power of an independent education at YOUR school can give a pupil (results, past pupil achievements, sports or arts superstars, future-ready skills, cultural experiences, awe-inspiring trips or opportunities – the list is endless) and weave this narrative into your marketing at every given opportunity. Parents are your best advocates and should also be part of your cheerleading team, so get them involved via video stories or school tours.
5. Diversify with other revenue streams
Independent schools are likely to be asset rich when it comes to their facilities, so if you haven’t already, it’s time to work with your Head and your Bursar to look at how income can be generated outside of admissions. Your school may already have dipped a toe into venue hire, holidays camps, conferences or international campuses, but how are they reaching their audiences? There is often an over-reliance on word of mouth and a lack of marketing strategy in these areas, so school marketers can step in to make a real impact.
6. Embrace transparency
Should you say nothing, or should you convey your concerns to parents? It’s a tricky tightrope to walk as no one likes scaremongering, but parents will be reading the headlines too. We think transparency is critical to building and maintaining trust when times are tough. Independent schools should try to be open and honest with stakeholders when they feel it’s appropriate and more importantly, have something notable to say. We’d suggest sitting down with your wider leadership team and building up a plan of what appropriate communications ‘could’ look like and how they are delivered, as well as proposed responses to any questions parents may have.
There are so many factors at play that will affect the finances of independent schools moving forward (lower birth rates also being common) and Labour’s plans are clearly not something you can just solely just ‘market’ your way out of – if only! But by thinking ahead and having a strategy, marketers can play a vital role in supporting their school during challenging times.
With thanks to Adrienne Forster, Head of Admissions and Marketing at Banstead Prep School for reviewing this piece prior to publication.
Michelle – Mailers
