Private schools checks
Progress hailed but care will be taken to monitor it continues
PRIVATE schools which failed tough new charity regulations are to be given annual checks to ensure they are playing by the rules.
The move by the charities watchdog comes after it completed its review of all 52 schools in the independent sector.
Ten schools failed the charities test at first, largely because of restrictive fees, and were ordered to improve bursary schemes.
The status is seen as vital by private schools because it makes them exempt from VAT, saving them millions of pounds.
Schools say they have taken great strides in improving access, with figures for 2014/15 showing meanstested financial assistance of more than £27 million across the sector.
In excess of 600 pupils, at day and boarding schools, have all fees paid, while support below that level is given to more than 2,300 pupils. A further 4,000 pupils receive non-tested assistance such as scholarships, sibling and staff discounts.
In a new report the Office of the Scottish Charities Regulator (OSCR) said all schools had now complied with the charities test, but highlighted the “significant proportion” which initially failed. “It is therefore reasonable for OSCR to continue to maintain a higher level of vigilance concerning the compliance of this group of charities,” it states. “We plan to identify selected schools for specific annual monitoring as part of the changes to annual reporting. We would prioritise schools which have failed the charity test in the past.”
Where monitoring identified an issue, officials would engage with the school and “where necessary” open an inquiry.
Schools which failed the test included Hutchesons’ Grammar in Glasgow, Fettes and Merchiston Castle in Edinburgh, Lomond School in Helensburgh, St Columba’s School in Kilmacolm.
The regulator has been assessing the charitable status of private schools under a test defined in the Charities and Trustee Investment (Scotland) Act 2005. The test sets the standard that all charities must meet in providing public benefit. Where there are conditions on the public gaining access to the benefit, such as fees or charges, charities must take steps to ensure these are not “unduly restrictive”.
For schools that failed the public benefit test, the regulator ruled insufficient measures had been taken to provide assistance to offset the high fees charged.
The Scottish Council of Independent Schools (SCIS) said members would continue to work with OSCR to ensure the “good work” done was upheld in years to come.
John Edward, director of SCIS, said: “This concise report should be essential reading for all those who seek to pass comment on the independent sector. It details the long and often difficult process for schools to meet a test that was designed, legislated for and implemented in the Scottish Parliament.
“OSCR makes clear that the schools have a good awareness of what is required of them and, crucially, that they have undergone more rigorous and in-depth scru- tiny than any other group of Scottish charities.”
Liz Smith, Scottish Conservative young people spokeswoman, said there had been progress. “That legislation rightly ensures there is a rigorous test for all independent schools to undertake prior to being awarded charitable status.The report makes it very clear that independent schools have been more scrutinised than any other group within Scotland’s 22,000 charities and that any concerns about individual schools have been fully addressed prior to the award of charitable status. If schools do not meet these criteria, they fail the test. That is as it should be and should put an end to those who argue all independent schools should be stripped of charitable status.”