With the OFT’s two year investigation into school fees almost over, it seems that some of the most damming criticism of the private education system has come from within. At the conference of the Incorporated Association of Preparatory Schools, the chairman said, ‘I do not believe that price elasticity will forever be on our side’.
This comment was in response to another survey, this time by the Independent Schools Council highlighting the fact that 88 of their members charged annual fees of over £20K. Last month we reported on a survey by Halifax that showed the enormous price differential between real wage increases and private school fees (43% and 129% respectively).
Taken in isolation this looks very bad for schools under investigation by the OFT. However another Halifax study of council taxes shows that these have gone up by an average of 121% and in a far shorter period than the increase in private school fees.
The ISC should be pointing out that the results of private schools are far better those than in schools controlled by Local Education Authorities. They should also ask the OFT to investigate council tax rises because these are anti-competitive and have been allowed to increase at a rate that would make the most avaricious of private schools envious.
