The UK government confirmed on 30 October, that independent school fees will be taxed from 1 January 2025 at a rate of 20%. Despite lobbying by the sector, and extensive evidence to show the significant damage of this policy, it is being implemented as originally proposed. Schools will soon face serious challenge on recruitment market both at home and abroad as well as additional financial pressure.
The above issue has been the main topic and concern of the UK schools during the recent BBSW (British Boarding School Workshop) held in London between 7-9 November. Daniel Zheng, Managing Director of HOPE attended the event and discussed this issue with many schools on how this policy may affect China market and how UK schools can make any effort to minimize the impact.
According to Daniel, although some UK schools is planning to absorb a percentage of the fee increase, an average of 10-15% of the increase is inevitable, and this will cause a long term negative impact on China market particularly under the current economic situation. After the pandemic, the international education market has been recovering quite slowly in China, given various reasons: safety, international relations, immigration policy, diversified destination countries, in-country options etc..The substantial fee increase will obviously add another big barrier to families who are planning to send their kids to the UK. The result is foreseeable in the coming 1-2 years.
How the negative impact of this VAT policy can be minimized on China market? How UK schools can still make themselves competitive in this already-very-competitive market? Daniel suggested the following advice:
Firstly, UK schools need to plan both short and long term strategy to recruit in China. For short term, it is important to visit the market regularly(twice a year) to attend some promotion events/SMALL fairs and provide training for key agents and their counsellors;
Secondly, it is important to set up school’s own summer/winter camp or short immersion programme if you have not one at moment. These ‘taste’ programme can encourage students to come to experience the campus and culture of the school so that they can make the decision from dozens of choices they may have.
Thirdly, it is equally important to work with a few schools in China. By establishing school link, you can promote your summer programme, term time short stay programme(1wk to 4wks) and then convert some students for your long term programme. Working with Chinese schools can be an endorsement to your profile in China.
Fourthly, constantly improve your services and pastoral care to international students in a real sense by understanding local culture and parents demand. Every school can speak highly of themselves, but quality of service can only be recognized from details and real actions.
Lastly, offer more scholarship to top students.
HOPE is planning a series of events for our partner schools next year including mini school fair, school link forum. you are welcome to visit us and attend the events then. Meanwhile, we have quite a few partner Chinese schools asking us to find overseas partner schools. If you are interested in discussing the potential partnership with them, please let us know.
