Two independent schools charities have reported large income rises in their recently filed accounts and have noted a potential challenge to their networks from proposed Labour Party policy.
The Girls’ Day School Trust (GDST) and the Woodard Corporation reported year-on-year income rises of 10% and 12%, respectively.
GDST, which runs 23 independent schools and two academies, saw its total income rise by £28.4m to £314m for the year ending 31 August 2023, compared to £286m in 2021-22.
The charity’s main source of income was from tuition fees, which increased year-on-year by £19.5m, with government grants for GDST academies increasing slightly to £14m (2022: £13.4m).
Christian independent schools charity the Woodard Corporation, meanwhile, reported an increase in income of more than 12% from £217.2m to £243.6m.
According to its accounts for the year ending 31 August 2023, its income from school fees was £12.7m higher than in 2021-22 while grants and donations totalled £6m (2022: £4.5m).
Both charities referred to Labour’s plans to add VAT to private school fees at the standard rate of 20% if the party wins the general election next month.
GDST’s accounts read: “We must remain alert to the further challenges of current market conditions and opposition party policies, for example, Labour’s proposed policy of adding VAT on school fees.”
The Woodard Corporation’s latest accounts also refer to current Labour policy to remove tax concessions for independent schools which it says “would prove a challenge to a number of schools in the sector”.
Expenditures rise
Both charities also reported a rise in expenditure last year, mainly due to staff costs.
GDST’s total expenditure increased by £22.4m (8%) in 2022-23 to £302m, with staff costs rising by £14.6m.
Its average number of staff was 4,545 (2022: 4,388), with its highest earner receiving between £300,000 and £310,000.
Meanwhile, the Woodard Corporation saw its expenditure rise by more than 8% from £214m to £232.1m.
Its average number of employees during the year was 4,024, up from 3,738 the year prior, and the highest earner received between £290,000 and £300,000.
The charity reported providing means-tested bursaries, introduced in response to the Covid-19 pandemic, worth £8m and scholarships worth £7.8m.
Its consolidated net assets increased from £252m to nearly £260m and its unrestricted reserves rose from £142m to £156m.
