Private schools ditch scholarships to make room for poorer pupils

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Schools have traditionally used scholarships to secure pupils who are most gifted academically, musically or athletically, and make the awards without regard to the wealth of the pupil's parents.

But from next year, independent schools will be expected to place more emphasis on helping the poorest children or lose their tax breaks.

Helping hand: Schools which reach out to the community are more likely to qualify for charitable status

Class sizes may also have to rise so schools can hand out more means-tested bursaries while keeping fees down.

According to a report from accountants Howarth Clark Whitehill, last year 500 schools gave out more than £100million in bursaries to the less well-off.

'This appears to reflect a genuine willingness by the sector to address the issue of widening access,' the report said.

Typical schools are giving scholarship pupils only 10 per cent off fees rather than 50 per cent six years ago while those eligible for bursaries are increasingly awarded the full fee.

Independent schools will only qualify for charitable status if they can demonstrate that they serve the public and the Charity Commission has said it will look favourably on schools with generous bursaries.

The accountants also advise schools to consider increasing class sizes.

Over the past ten years, the average number of pupils per class has fallen to less than ten.

However, fees have risen 40 per cent over five years.

But headteachers are likely to jettison small classes only as a last resort, as they are the ' number one selling point' of independent schools.