Although Labour’s policies have loomed for some time now, I expect that you, your colleagues, governors and parents are still busy digesting the outcome of the General Election and what the introduction of VAT on school fees will mean for your own school community. We hope that, by sharing some insights from our recent client work, you will be able to approach this challenge more strongly and successfully.
Parents want information – fill the information gap
For many weeks, schools have been in a holding pattern, which most parents have been prepared, if not happy, to accept. Now the new government is in place, we should expect that patience to run thin and, although the full implications of the policy have yet to be revealed, for people to want information. As you may have experienced during COVID, parents can be very unforgiving when the future is unsettled and, even when the situation is not of your making, will look to you to offer a solution. As we also saw in the pandemic, how you respond can buy enormous goodwill. Now is not, therefore, the time to hold back from communicating. On the contrary, it is the right time to engage with your parents, to show empathy and, importantly, to show that you are prepared.
Getting the tone right is critical: we have been privy to a spectrum of letters in recent weeks which really do vary in their quality. It is certainly worth investing time and effort (and perhaps in the skill of a professional?) to get this right. We have seen the communications land best when schools have lifted the lid on their thinking and brought parents in on the series of contingencies they have prepared to meet the range of possible scenarios, taking account of the level of VAT, scope of application and the impact of exemptions. This approach builds confidence, respect and a sense of calm. It also creates extra time, which is very much what schools need right now.
Getting your people ready, including your Board and Admissions team
If you haven’t already done so, you should establish a small group to note and appraise the policy updates which are likely to emerge over the summer and to share their work with appropriate senior people and Board members.
You should also put aside time to undertake the analysis needed to support substantial discussions and decision-making. This analysis will require work from the senior leadership and bursary team, with potential input from legal, financial and other experts. You may also wish to schedule some Extraordinary Board meetings so you are quorate to make the necessary decisions.
Practically speaking, you will need to build a more resilient and well-informed general office and admissions set-up than in typical summers. Current and prospective parents will seek information and advice, and some families will need the right people on hand to guide them through a change in enrolment arrangements or a possible departure. You will also want to ensure your results days are well staffed, with your team well briefed and ready to reassure parents about matters unrelated to exams.
So part of getting the external comms right is to focus on internal comms!
Make sure you know what your parents are thinking
We have recently surveyed more than 5000 parents on school affordability. While the headlines of our findings will not surprise, an interesting outcome is the variance in parents’ responses and how these cluster in different schools.
While some parental communities are very price-sensitive, others are steadfast in their preference for a high-quality offer, small classes and a full range of subjects and non-classroom opportunities and are prepared to pay for this. Knowing what sort of parents you have at your school is important. For example, cutting back on the range of your offer is an obvious way to trim costs, but may be exactly what your parents value about your school.
Knowing your market and your families’ priorities has never been so important. Yours may be one of the many schools to have incorporated affordability questions into parent surveys. If not, there will continue to be opportunities to sense-check parents’ circumstances and preferences as the government’s policy crystalises in the coming weeks.
Focus on retention
It makes a lot of financial sense to focus even more on the retention of pupils as this is surely going to be under greater pressure than ever before.
When responding to our surveys, between one-third and two-thirds of families indicated they may leave at the end of their child’s current school year or at the next natural stage of their child’s education, such as the end of Year 6 and Year 11. Injecting even more effort into shoring up these transition points, marketing them earlier, and enhancing and showcasing the offer in Year 7 and Year 12, will therefore be critical.
Furthermore, our most recent surveys underline the importance parents attach to ‘customer service and communications’ and how fragile their loyalty can be. Those parents who are less satisfied are much more likely to consider leaving their child’s independent school, for example, regardless of their income band.
We have seen some schools take a more proactive approach to retention: analysing their roll for parents who may be considering leaving and identifying the most appropriate or trusted member of their team to explore support strategies for families.
Certainly, as schools plan for the future, there is an increasingly strong case for putting ‘student retention’ on the risk register and, for the first time in most schools, having a named risk owner, who will take responsibility for developing and delivering a robust retention strategy.
Set the right price
A majority of parents we surveyed said they would move heaven and earth to keep their child at their current school … but might think twice before signing up a younger sibling. Sibling discounts tend to exist for things like bus fares but are less common on core fees, but is this right? We are starting to see signs of schools introducing more nuanced pricing strategies to account for market context and parental demand. As you and your teams consider and finesse your response to VAT on fees you may wish to factor this in, looking at sibling discounts, as well as loyalty benefits and more competitive pricing in vulnerable years. While this may feel very commercial for the sector, it may be the difference between surviving and thriving.
There is, and will continue to be, a great deal to digest. Please be assured that we will be working throughout the summer, analysing announcements and assessing their implications, and are ready to support you through the coming change. If we can be of any assistance at any time, please do not hesitate to contact us.