Hard-hit parents turn to 'no frills' private schools

Headteachers said some parents were pulling their children out with no notice, while others were increasingly reluctant to commit to paying fees.

Among those still choosing independent schools, fee levels have risen to the top of the list of concerns amid signs of a boom in "no frills" private education.

Sue Fieldman, of the Good Schools Guide, said fees had not been the major influence on parents choosing schools in the past.

"But now with the credit crunch, we find that the amount of the fees is becoming far more relevant," she said. "If you have two schools more or less the same, if one is £500 cheaper, they are going for that rather than the flash swimming pool or the expensive theatre."

Nurseries, prep schools and pre-preps are the most likely to close, she said. "There are certainly going to be some falling by the wayside between now and June or July."

Private schools typically charge more than £11,000 in annual fees, and more than 50 now set fees at over £25,000 per year. The Standard has uncovered fresh evidence of the impact of the downturn on private schools:

● More ailing independent schools in London and the South-East are approaching larger firms in the hope of finding buyers.

Former Ofsted chief Chris Woodhead's chain of 44 private schools, Cognita, is in exploratory talks with several schools. The group keeps costs down by eschewing lavish facilities.

● Grammar schools in the South-East are reporting soaring numbers of applications.

● Two new "low-fee" private schools will open in London this year. The £5,000-a-year schools - in Docklands and Ladbroke Grove - will be set up by the New Model School Company, an offshoot of think tank Civitas, which already has one school in London.

● Talks are under way for another new low-fee school to join the Alpha Schools Group, which has four "affordable" preps in the London area already.

Robert Whelan, from Civitas, said there was "no limit" to the number of low-cost schools the New Model School Company could open.

"The demand is fantastic. It is a question of finding buildings," he said. Ali Khan, managing director of the Alpha Schools Group, said: "We have phone calls from people who are at those prep schools where the fees have got to £4,000 a term.

"If you take ours at £2,500 per term, we have some who, rather than going straight back into state schools are thinking, 'We can move to another private school and have the cost savings.'"

But Mr Khan, head of Crown House school in High Wycombe, said many parents were delaying the decision to commit to school fees. "People used to sign up when the child was about one year old.

"They are leaving it much later - the term before they are due to start," he said. Some "opportunist" parents were even withdrawing children without the agreed one term's notice.

The Independent Schools Council, which represents 1,500 private schools, dismissed suggestions of an "exodus". ISC chief executive David Lyscom said: "Much as we do not wish to play down the seriousness of the economic situation, it should not be assumed that independent schools will be badly hit."