The Charity Commission has opened a compliance case into an independent school charity after a group of parents urged it to investigate a proposed closure.
Last November, the governors of Carrdus School, an independent co-ed day school for pupils aged three to 11, said the school might need to close at the end of the spring term 2025 unless a commercial solution could be found.
They blamed “the introduction of VAT on independent school fees mid-academic year, further compounded by the loss of charitable business rates relief and the increase in employers’ national insurance contributions”, which had put “a great deal of pressure on parents and schools”.
In a subsequent update published in December, the governors confirmed that Carrdus would close in July 2025.
The regulator told Civil Society that it received a complaint about Tudor Hall School, which owns Carrdus School, about the proposed closure and “opened a compliance case into the charity to examine the concerns raised”.
“We continue to engage with the charity’s trustees,” a spokesperson said.
No plans to close the school before VAT changes
According to the Sunday Times, the group of parents who complained to the commission argued that Carrdus School could have been saved and that the VAT changes were not to blame for the closure.
However, a spokesperson for Carrdus School told Civil Society that “there were no plans to close or sell Carrdus prior to the VAT announcement”.
They added that “the government’s decisions to add VAT to independent school fees, remove charitable business rates relief and increase employers’ national insurance contributions increased the deficit to a size that was no longer sustainable”.
“Carrdus has had below-target pupil numbers for several years. We’ve always been able to absorb the financial losses and keep the school open thanks to good financial management and annual six-figure subsidies from Carrdus’ sister school, Tudor Hall.”
The spokesperson said Carrdus School explored all options, including trying to attract “a viable bid to take the school on as a going concern”, but did not receive one.
“All proposals were carefully considered. The formal bidding process was fair and transparent and was carried out by a well-respected professional third party, precisely so all could be assured of the integrity of the process.
“All bidders had the same opportunity to access the information they wanted, which was provided by the third-party experts.”
‘We’ve been proactively engaging with the commission’
Carrdus School has been “proactively engaging” with the commission since it first contacted it last year to ensure it was fully informed about the closure of the school, the spokesperson said.
“We’ll address with confidence any complaint with the Charity Commission in due course.
“We’re focused on providing an excellent education to our pupils to the end of the year, on supporting Carrdus families to secure places for their children at other schools, and on supporting staff whose employment will end in July.
“While parents and staff are deeply upset, it’s our pupils who are most damaged by the school’s closure.
“Yet, they have responded with good humour, fortitude and resilience. They’re an example to us all of how to behave in adversity, and we are very proud of them.”
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