UK Private Schools Warned Against Fee Collusion

The Competition and Markets Authority (CMA) has warned British private schools to avoid colluding on plans for fee reductions and discounts as they struggle to adjust to the impact of coronavirus, reported The Financial Times.

In a letter sent by the regulator earlier this month to independent schools organizations, which has been seen by the Financial Times, Howard Cartlidge, senior director, cartels, wrote, “We have become aware that individuals at some schools may be engaging in discussions with each other about the level of discounts and/or refunds on school fees.” 

Mr Cartlidge declined to give any specific examples, but cautioned that the CMA would “not tolerate” the sharing of information on sensitive decisions “which should be taken independently,” and warned that organizations could incur fines of up to 10% of turnover, as well as “the risk of undermining public trust more widely across the independent school sector.”

The alert comes at a time of growing pressure by parents for private schools to cut fees after the coronavirus lockdown, which saw them switch largely to online provision. Some institutions are under significant financial pressures because of both the pandemic and a recent rise in pension contributions.

Full Content: Financial Times

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