Could joining the state sector be an option for private schools?

Private schools in England are facing new financial realities. Following the UK general election in July 2024, the new government introduced VAT on school fees and removed charitable business rates relief for independent schools. At the same time, staffing costs have continued to rise. Employer national insurance contributions have increased, and the national minimum wage has risen.

For some schools – particularly smaller institutions with limited endowments or declining enrolments – this has raised questions about their sustainability.

Although the full impact of these funding changes remains to be seen, they have intensified concerns about sustainability within parts of the independent sector and raised broader questions about reform.

One viable yet underexplored option is the conversion of private schools to the state sector.

Although still relatively rare, a small number of independent schools have taken this route over the past two decades. In a new report, commissioned by thinktank the Private Education Policy Forum, my colleague Tom Richmond and I have carried out the first comprehensive analysis of what happens when independent schools become state schools in England.

Between 2007 and 2017, 27 independent schools converted into state-funded academies or free schools. Twenty-four are still operating today. While the legal route from independent to state provision technically still exists, it has largely fallen out of use, with no conversions taking place since 2017. Independent to state conversion is therefore often overlooked in debates about the future of private education.

Conversion is often viewed as a last resort taken only by schools in serious financial trouble. However, while financial pressures were relevant to many of the schools that converted between 2007 and 2017, they were not the whole story. Schools have also framed conversion as a way to return to their founding missions, which were often explicitly about inclusion and serving local communities rather than educating a fee-paying intake.

The transition itself was not straightforward. Schools reported significant challenges in adapting to the expectations of the state sector. These included the loss of academic selection, the requirement to deliver the national curriculum, and regular inspections by Ofsted, England’s school inspectorate. Many also highlighted the absence of clear guidance from government on key aspects of the conversion process.

In practical terms, this meant that schools which had previously operated with considerable autonomy had to adjust to a far more regulated environment. In some cases, early Ofsted inspections highlighted weaknesses in data use, governance and oversight as schools adjusted to the demands of state accountability.

However, these difficulties were not permanent. Over time, outcomes improved markedly. All but one of the schools that converted and remained open are now rated “good” or “outstanding” by Ofsted.

Former independent primary schools perform at broadly similar levels than other schools in their local authorities. Former independent secondary schools generally achieve stronger attainment and progress outcomes than nearby state schools, though performance varies. Initial adjustment challenges, in other words, did not prevent long-term success.

The consequences – and the future

One of the most significant changes following conversion is in pupil intake.

Removing academic selection and fees transformed who these schools serve. Since conversion, the proportion of pupils with special educational needs has more than doubled. The share eligible for free school meals has risen sharply.

Research has shown that while these schools do not perfectly mirror the national state school population, the gap between them and their local communities has narrowed dramatically.

In many cases, they are far more representative of their surrounding areas than they were as independent institutions. Conversion does not simply change how a school is funded. It can reshape who benefits from its facilities and educational offer.

A common concern is that families will withdraw their children once fees are removed. In practice, this rarely appears to have happened at scale.

Consultation evidence and enrolment patterns show that large majorities of parents supported the move, particularly because it eliminated fees and provided financial certainty. Where schools were required to demonstrate parental demand, applications frequently exceeded available places. Widespread collapse in enrolment – a frequently voiced fear – did not materialise.

Conversion to the state sector is not a solution for every school. Local context matters. The availability of places, building condition and leadership capacity all shape whether conversion is viable. But, the experience of the past two decades suggests that, where carefully managed, conversion can preserve provision, widen access and deliver strong outcomes.

As debates about school funding and the future of private education continue, independent to state conversion is likely to resurface.

If the route is to become viable again, greater clarity is necessary. A clear and permanent pathway – assessed case by case and aligned with local need – would reduce uncertainty. Drawing on the more flexible elements of earlier academy reforms and providing practical support during transition could make the process more workable.

This report was commissioned by the Private Education Policy Forum.