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Independent Schools Risk Barometer
Safeguarding the future: Independent schools push
ahead despite financial challenges
Welcome to Ecclesiastical’s 2024 Independent Schools Risk Barometer. As part of our ongoing support for the independent school sector, the Independent Schools Risk Barometer is a major research-based report that aims to understand the risks the sector faces and what it can do to manage and mitigate those threats.
Our research is based on a survey of 250 independent school and sixth form leaders and was conducted on behalf of Ecclesiastical by OnePoll in February 2024. The schools range in size from under 200 to over 750 pupils. The largest number (47%) have between 201 and 450 pupils.
According to our research, the top challenges facing independent schools today include rising costs, managing the mental health of pupils and staff, and the recruitment and retention of teachers. But we also found a sector that is tackling many of these challenges head-on.
In the rest of the report, we’ll look at the risk landscape in detail and how independent schools are adapting their approach in the face of rising pressure.
Introduction
Nearly two-thirds (61%) of independent school leaders say their schools are more concerned about finances than ever before. Nearly as many (58%) expect a growing number of school closures over the coming year.
If our last Education Risk Barometer (2021) was dominated by the COVID pandemic, rising costs are the overarching challenge facing schools in the early post-COVID era, and the independent sector is not immune.
They aren’t the only threat. According to our survey of 250 independent school and sixth form leaders, the top challenges facing the sector in 2024 include managing the mental health and well-being of pupils and the recruitment and retention of teachers.
Financial pressures come fourth in schools’ list of concerns, but when we dig down into our figures, it’s clear that the repercussions of a tough economy are impacting every aspect of school life. The independent education sector always has challenges, but rising costs inevitably make them worse.
The more money schools spend on basics like heat and light, the less they have for improving buildings, providing mental health support, or increasing wages.
Meanwhile, some parents are struggling to find the money for school fees. The upshot is that, while some schools will close, others may be forced to merge.
But the 2024 Independent Schools Risk Barometer also provides cause for optimism. Perhaps most importantly, schools feel better equipped to deal with some of the challenges they face, especially around pupil mental health issues and safeguarding. Teacher mental well-being is also being taken seriously. These are positive findings and speak of a sector that is increasingly proactive in its approach to managing risk.
"Financial challenges have inevitably impacted independent schools and many are grappling with rising costs and the extra pressure on staff, parents and pupils. But the sector is nothing if not resilient. This Barometer suggests schools have a new confidence around dealing with pupil mental health, safeguarding issues and staff stress levels. Institutions have clearly taken these challenges on board and put mitigations in place. The times are certainly challenging, but these are highly positive developments."
The first role of any school is to provide a safe and nurturing environment for pupils. Our 2024 Independent Schools Risk Barometer suggests this is becoming more challenging.
In our survey, nearly half (46%) of respondents said peer-on-peer abuse had increased either ‘somewhat’ or ‘a lot’ at their school, compared to 27% who said it had decreased. In our last Education Risk Barometer in 2021*, only 20% of schools said peer-on-peer abuse was a growing problem.
Over two-fifths (42%) of the 2024 respondents also said pupils questioning their gender had increased over the last 12 months. There were similar figures for online abuse (40%), grooming (40%), and self-harm (35%). Except for the gender question, which wasn’t asked in 2021, all these figures are significantly ahead of their equivalents in the last Education Risk Barometer.
* The 2021 Ecclesiastical Education Risk Barometer was based on interviews with 500 senior education leaders, 100 of whom were from the independent sector
Why the dramatic increase? It may partly be explained by the timing of the 2021 study, which came out in the middle of COVID’s second year. A series of rolling lockdowns reduced contact with pupils, possibly reducing the prevalence - or visibility - of some of these issues. The disruption of the pandemic may also have raised awareness of safeguarding concerns, prompting schools to become even better at spotting the signs.
Still, safeguarding is a growing risk to the sector, and school leaders are naturally worried. The vast majority of respondents (87%) said they were ‘very’ or ‘somewhat’ concerned by peer-on-peer abuse at their schools, a figure that has doubled since the last Education Risk Barometer. There were similarly high figures for online abuse (87%), grooming (85%), and self-harm (80%). In fact, concern was high across a wide spectrum of safeguarding issues.
A call to action
While concern for the well-being of children is natural, the positive news is that schools are also taking positive action.
Four-fifths of our respondents (80%) said they felt equipped to deal with safeguarding concerns, with only 5% saying they felt unequipped. At the same time, three-quarters (75%) said awareness around safeguarding issues had increased in the last year, and 71% said the reporting of issues was also more common.
Safeguarding is a school’s first responsibility, and the independent sector continues to make it a priority. Awareness and action have both increased, and educators feel more confident in dealing with the safeguarding challenges they face. That’s a particularly important finding given the Government’s recently announced plans to make it a legal requirement for teachers to report evidence of sexual abuse.
Mental health issues increase but so does support
According to nearly half of our respondents (49%), stress among pupils has risen in the last 12 months. Significantly fewer (39%) said the same in the 2021 Education Risk Barometer.
That’s also true of anxiety (47% today, 38% in the 2021 Education Risk Barometer), body image issues (43%, 21% in 2021), and depression (40%, 35% in 2021). Needless to say, our respondents are rightly concerned by the rapid rise in mental health challenges among their pupils.
The reasons behind this surge will be familiar to teachers and educators everywhere. A third (33%) of respondents said peer pressure to fit in was the biggest factor, with the same number choosing unrealistic body images on social or mainstream media. Dysfunctional home lives, parental pressure, bullying, and exam worries were also pinpointed as having a damaging impact on pupil mental health.
It’s interesting to note that the average age when mental health issues are identified is 11. That’s a crucial and anxious year for many pupils, as they transition from junior to secondary education. Targeted support at this time may have especially positive results.
The positive here is that schools are aware of the problem and are doing something about it. A large majority (86%) of respondents ‘strongly’ or ‘somewhat’ agree that their schools have increased the support available to pupils struggling with mental health issues.
That support is having an effect. Well over two-thirds (71%) of teachers feel equipped to identify pupils with mental health issues, with just 6% feeling unequipped. An even larger number (78%) feel equipped to support those pupils. Here, too, progress is being made. The number saying they felt unequipped has halved since the 2021 Education Risk Barometer.
As with safeguarding, the picture around pupil mental health is mixed. On the one hand, the challenge is growing. Pupils feel stressed and anxious to a worrying degree. The pressure to fit in and succeed is exerting damaging pressure on many young minds.
On the other hand, schools are more aware of the problem and are putting support mechanisms in place. That might include teacher training, online self-help resources, or mental health ambassadors.
Whichever it is, our survey suggests that it’s a very necessary response to a growing issue.
Available resources
Mental health issues increase but so does support
Teachers, like pupils, are under pressure. Independent schools are facing a surge in staff mental health issues. In the 2024 Independent Schools Risk Barometer, nearly all our respondents (92%) report a high level of concern over rising teacher stress.
Almost half (48%) also report an increase in the prevalence of anxiety, 47% an increase in stress, and 41% an increase in various other mental health issues. Two-fifths (40%) have witnessed a worrying increase in rates of depression. All of the results are higher than they were in the 2021 Education Risk Barometer.
"Stress is a major contributor to poor mental and physical health. The evidence is very clear that, left unchecked, persistently high levels of stress can have serious health consequences. It is vitally important that schools address the mental health and wellbeing of teaching staff, provide appropriate mental health training and support, and ensure that school settings provide psychologically safe and healthy environments for all that work and study in them."
Notably, our survey suggests the biggest contributing factor is the cost-of-living crisis and the financial pressures teachers are under, with 38% overall choosing this option. Nearly half (47%) of all through schools chose it, 39% of senior schools, and 38% of junior schools. Financial pressure was followed by increased workloads (32%) and pressure to deliver good results (30%). In the 2021 Education Risk Barometer, financial pressures didn’t make the top three.
Are schools doing something to help? Mostly, they are. The majority (70%) of respondents said their schools provided mental health support for teachers, though a significant number (28%) said their schools didn’t. There is clearly work to do in this regard.
Recruitment and retention: a serious risk
It needs to be done, or schools risk losing the teachers they depend on. The sector faces a serious recruitment and retention issue. Our survey found that over two-thirds (68%) of staff have seriously considered leaving the independent school sector in the last few years. In the 2021 Education Risk Barometer, only 26% of respondents were thinking about leaving.
Teaching is a vocation, but increasing costs may have some teachers questioning their commitment to classroom life. That’s a worry, and over 60% of respondents say their school is struggling to recruit and retain staff. In fact, 65% of them say their school is more concerned about recruitment and retention than ever before.
Available resources
According to our 2024 Independent Schools Risk Barometer survey, three in five (60%) independent schools are more concerned about repair and maintenance to buildings and facilities than ever before. The same number (60%) say their school should be doing more to improve the health and safety of school buildings.
Staying on top of maintenance schedules is a constant headache for school leaders. Financial challenges have turned a molehill into a mountain. Over two-thirds (71%) of respondents say the cost of maintenance is spiralling. Nearly half (49%) agree that their biggest challenge in this area is a lack of funds in reserve.
The rising cost of maintenance is a challenge for all schools, but many independent schools have an added concern. Most of the schools surveyed (86%) have at least one listed building on their estates. The cost of this specialist care is also rocketing, according to 66% of respondents.
“Accidents can result from the poor maintenance of premises and affect staff, students and other visitors. Clearly, having a planned preventative maintenance approach that reflects these risks will help avoid problems in the first place. It should also improve any claims defensibility position if something does go wrong.”
Available resources
Sustainable schools
The challenges around maintaining school properties are complicated by the need to make schools sustainable. Over two-fifths (41%) of respondents said the increasing impact of climate change was their top challenge in this area.
Increased investment is certainly needed, despite the fragility of school finances. Less than a third (30%) of respondents have invested in increased insulation, and just a quarter (26%) utilise a smart building management system that monitors and optimises energy use.
Schools are aware of the need for change. A further 18% of respondents say their school will invest in increased insulation in the next 12 months. In three to four years, far more will have triple glazing (28% plan to invest in this time frame) and electric vehicle charging points (26%), among a number of other measures.
Independent schools also know they have a part to play in the wider climate struggle. Nearly two-fifths (39%) of the schools we polled are reducing single-use plastics, and 38% are encouraging car sharing. These are important measures for the planet and also for the sector’s reputation. Parents and pupils in independent schools are as concerned about climate change as anyone else.
Nevertheless, schools admit they need help to meet sustainability goals. For example, over two-thirds (38%) of respondents need support in understanding their school’s direct and indirect carbon footprint. Indirect emissions are those that occur in an organisation’s wider value chain.
Available resources
Managing risks with sustainable solutions
Risk maturity assessment
Risk Maturity Assessment
Building for the future
Despite financial constraints, independent schools are adding to their estates, with nearly a fifth (19%) currently constructing new buildings and nearly half (47%) saying they will construct new buildings in the next five years.
This expansion is clearly necessary to increase capacity (and revenue potential) and create the modern facilities parents and pupils want. But it does come with concerns.
62% of survey respondents are worried about projects going over budget. Nearly two-thirds of schools (65%) say they carry out thorough risk assessments when considering new builds or sustainability projects, which means that over a third don’t. That could be an accident waiting to happen.
New builds and major projects require thorough risk assessment, and schools should talk to their insurers as early as possible in the planning process. An insurer’s requirements for fire protection and building resilience may be more comprehensive than those stipulated by building regulations, for example.
On that point, schools need to be aware that materials used in modern methods of construction (MMC) may be sustainable but can also be combustible. In addition, solar panels should only be installed after consultation with fire and rescue services.
These are just some of the factors schools should account for when planning new buildings or sustainability projects. While the majority of respondents (68%) said they are aware of insurers' requirements in this area, a sizable minority (32%) may not be. If in doubt, consult your insurer or broker.
“Anyone planning a new building should be aware that building regulations are only concerned about conserving life. In the case of fire, that means everyone can get out of the building in a certain timeframe. There’s no real requirement for resilience. But an insurer will take fire resistance and business continuity into account. In other words, your material choices might result in a short-term cost saving, but could also impact the costs of insuring the building for its entire lifespan. The simple message here is to consult your insurer or broker at the earliest possible stage in the planning process.”
How hard has the independent school sector been hit by financial challenges? Our 2024 Independent Schools Risk Barometer survey offers a telling clue. Nearly two-thirds (64%) of respondents believe their school would be open to a merger or acquisition in the future.
In fact, many of them are open to it now. A fifth (20%) of respondents said their school is currently going through a merger or acquisition, and 38% said their schools had merged or been acquired in the last 12 months.
This speaks of a sector in flux. Over half (54%) of the sector leaders we surveyed expect an increase in this kind of consolidating activity in the next year. Even more (58%) predict an increase in school closures, which is partly explained by the 57% who worry that parents will struggle to keep up with fees.
In these circumstances, the benefits of merging with another school can seem obvious. Our respondents picked out greater financial stability (44%), improved facilities (40%), and cost and resource efficiency (38%) as their top three. These advantages may be especially apparent when neighbouring schools with complementary offers (separate boys and girls schools, prep and senior schools) join forces.
“There are pros and cons with any potential school merger or acquisition. Schools should use an Enterprise Risk Management process as a framework to fully understand what they are, and make an informed decision about whether one outweighs the other. Identify the risks and opportunities of the merger and prioritise them based on likelihood and impact. Think about ways a risk might be managed, through insurance, additional controls, or by finding ways to avoid it. Finally, get buy-in from all senior stakeholders, and if the merger or acquisition goes ahead, make sure they remain fully informed throughout the process. In short, a merger or acquisition is a big decision and schools need to do their homework to make sure it’s the right one for them.”
But there are concerns, too. Merging with another school is not always a magic bullet. Our survey respondents worry about the dilution of the school brand and a loss of identity (42%), as well as parents removing children from the school (41%), resistance from staff, parents, and pupils (38%), and cultural clashes (38%).
Parents and prospective parents may worry about settling children in a school in the midst of sale or merger talks, because of the perception of financial fragility. Any activity of this kind would need to be accompanied by clear and reassuring communication with parents.
Not all of these takeovers and mergers are down to the cost-of-living crisis. Consolidation happens anyway, as organisations seek the strength, economies of scale, and stability that growth can bring. But the scale of activity is instructive, suggesting that many schools are using mergers and acquisitions as a way to meet current challenges as well as grasp new opportunities.
Conclusion
What does the 2024 Independent Schools Risk Barometer tell us about the state of the independent school sector? Despite challenges, there are some encouraging themes.
Independent schools have never been so focused on the safeguarding and mental health of their pupils. Even better, to a large degree, educators feel equipped to identify and support children who are having problems. This might be the result of specialist training or investment in relevant resources, but whatever it is, this is a hugely positive outcome.
Teacher mental health is also a priority, even if there is more work to be done. The same could be said for the challenges the sector faces from climate change and combating the impacts of extreme weather. Most of the schools in our survey are doing something. Many probably want to be doing more.
At the heart of this Barometer is the clash between what schools want to do and what they can realistically achieve. Most of our schools are worried about finances to a greater extent than ever before. They’re worried about funding for essential maintenance and parents struggling to pay fees - and a lot more besides.
Needless to say, a shortage of funds affects every aspect of school life. A significant number are still investing in new buildings and sustainability projects, which does suggest confidence in the future. But many are increasingly anxious about projects going over budget.
The upshot is that many of our respondents expect something of a shake-up in the sector over the next 12 months. Some schools will close. Others will be taken over or merge with neighbours.
But in most cases, they will continue to create a better learning environment for pupils and teachers. They may be worried about money - who isn’t? - but there’s clearly a will to push ahead with plans to modernise buildings and create safer, healthier, more tolerant surroundings, whenever finances allow. The findings of our 2024 Independent Schools Risk Barometer suggest that, when the economy improves, the pace of progress in the independent schools’ sector will only increase.
OnePoll research carried out on behalf of Ecclesiastical Insurance, February 2024 – based on 250 UK independent school leaders surveyed