Responding to COVID-19: how can private schools meet the current challenges?

Shutterstock 345233993
problems encountered by the 2,400 independent schools are much more acute than their state-owned peers

All 32,000 schools in the UK are facing huge challenges as a consequence of COVID-19, although the problems encountered by the 2,400 independent schools are much more acute than their state-owned peers.

Every school in the country has had to contend with the operational challenges of remote teaching, embracing technology in order to facilitate the education of students. However, the independent schools don’t have the safety net of financial support from the state and therefore cash flow pressure is beginning to build on these private, or often charitable trust owned enterprises.

Leadership teams of independent schools are therefore grappling with difficult questions such as:

  • How can we reopen within government guidelines?
  • Will we need to refund fees due to closures?
  • Can we justify our normal fees if we are delivering increased or entirely remote learning?
  • How will enrolments for next year be affected?
  • Will international students still see the UK as an attractive place for education?
  • Will fees be affordable for households who need to conserve cash?
  • What additional cost will be required to deliver learning in a safe social-distancing compliant learning environment?
  • How do we maintain social distancing for the students?
  • Will we adopt PPE and face coverings for all within the school buildings?
The independent schools market has attracted significant investment in recent years

We expect a number of independent schools will be faced with difficult decisions as the financial implications from the fallout of COVID-19 becomes clearer. Being on the front foot in exploring partnerships, funding and investment options may help avoid liquidity issues and potential closure. Unfortunately, we have already seen the administration of a number of schools and it is feared many more will follow without action.

The independent schools market has attracted significant investment in recent years both in the UK and across the globe. As an example, in early 2019 Synova Capital invested in Chatsworth Schools, providing growth capital to expand its portfolio of five schools which it has done successfully since this date.

Clearwater International has significant experience in delivering value for our clients across the education sector. Our sector knowledge and global footprint ensures we know the investors and trade partners relevant to the independent schools market.

View all publications