Private school charity rules face legal review

Private schools are legally challenging the charity rules that force them to provide free places to students from poorer backgrounds.

The Independent Schools Council was granted permission by the High court for a judicial review of the guidelines governing charitable status.

The move represents a significant victory, as the battle may lessen almost 1,000 schools having to fund bursaries from deprived families, and resultantly stop parents having to pay higher fee levels in order to offer subsidies to those who cannot pay the full cost.

Under Labour’s 2006 Charities act, fee-paying schools were no longer automatically entitled to charitable status, and had to prove they provide public benefit – which could be proven by offering access to swimming pools, concert halls or master classes in A-level subjects not provided in local state schools.

However the document made it clear that providing more bursaries was the most logical way of satisfying the rules, which could be done by increasing fee levels.

The ISC claimed it constituted a “gross misinterpretation” of the law.

Matthew Burgess, ISC deputy chief executive, said: “Our schools have had to wait a long time, but the court has finally confirmed today that the ISC’s central contention – that the Charity Commission’s guidance on public benefit is legally flawed – is robust and should receive a full hearing.”

“We look forward to our judicial review, and the Attorney General’s reference, delivering clarity and certainty for schools and all other charities which rely on fee income for their operations once and for all.”