The independent school sector is undergoing a quiet but significant shift.
In response to rising costs and the added pressure of VAT on school fees, a growing number of independent schools are choosing to join larger education groups or form strategic partnerships to share risk and ensure long-term sustainability.
Research from specialist education insurer Ecclesiastical, published in 2024, found that 20% of independent schools were undergoing a merger or acquisition at the time, and nearly 40% had done so in the previous 12 months. Groups like Galaxy Global and CATS Global Schools have grown rapidly in recent years, acquiring schools across the UK and strengthening their ability to weather financial challenges. Malvern St James, which joined Galaxy Global earlier this year said the move would provide “stability and opportunity” for students and staff alike. CATS, now includes schools such as Bosworth Independent College and Bournemouth Collegiate School, which all benefit from shared expertise and a globally connected operating model.
This move towards consolidation reflects a broader recognition that operating alone can make schools more vulnerable to sudden economic shocks. Larger groups offer greater financial flexibility. For example, Inspired Education, has pledged to absorb VAT at some schools rather than pass it on to parents, showing the stability these partnerships can offer.
One bursar we spoke to put it simply, ‘it’s just less lonely.’ Having access to shared systems and people who understand the pressures has made the day-to-day feel more manageable. These changes show a growing awareness of how financial risks are connected. In our work with independent schools, we’ve seen how inconsistencies in fee collection or delayed escalation processes can quietly erode stability. Becoming part of a wider group doesn’t entirely remove these risks but can provide the breathing room needed to tackle them more strategically.
Joining a group can offer stability, reinforcing that with the right financial support is just as important. To find out how Redwood Collections can help, call us on 020 4532 8075 or email keyaccounts@redwoodcollections.com.
Categories: Sector News
