Memorandum from Christ's Hospital (DCH
232)
CHARITIES BILL: INDEPENDENT SCHOOLS AND PUBLIC
BENEFIT
Pre-legislative scrutiny of the Charities Bill
has, as you are aware, focused in part on the issue of what public
benefit is provided by independent schools, and on whether a statutory
test should be established setting a standard for institutions
to reach if they are to enjoy the fiscal advantages of charitable
status.
Christ's Hospital is a charitable educational
foundation which supports a school of the same name. Its commitment
to tackling social exclusion dates to the 16th century when the
school's founder, Edward VI, established it to provide education
and a home for London's street children. Christ's Hospital's 21st
century interaction with communities in need remains true to those
founding principles, with 98% of places at the school attracting
significant financial support. 20% of places are free, and average
parental income is £18,403. Our musical, sports and theatre
facilities are an asset shared with the wider community.
We believe Christ's Hospital provides the gold
standard for public benefit that many in our sector might wish
to aspire to in an environment where a test for contribution exists,
and as such provides food for thought for the committee as it
ruminates on the draft Bill. I hope you find the attached note
of interest, and you might also wish to visit our website at www.christs-hospital.org.uk.
SUBMISSION TO THE JOINT COMMITTEE OF PARLIAMENT—DRAFT
CHARITIES BILL
INTRODUCTION
This submission is made on behalf of Christ's
Hospital. It is a charitable education Foundation, which financially
supports an independent boarding school of the same name.
It uses the name gifted by its founder, Edward
VI, in 1553. It holds good to the original mission of the 16th
Century which created Christ's Hospital for "fatherless children
and other poore men's children". It does so in the context
of the 21st Century.
THIS SUBMISSION
This submission cites Christ's Hospital as an
existing, historic charity delivering public benefit via its Foundation
and independent residential school.
We also offer the Joint Committee our considerations
on the Public Benefit Test of the future.
PURPOSE OF
CHRIST'S
HOSPITAL
— We admit children in need. Our admissions
process is open access and does not depend on the ability to pay.
— Need can be justified on grounds
of housing, health, finance, home circumstances or a combination
of these or other factors.
— Christ's Hospital is wholly reliant
on its ability, through the assets of the Foundation, to generate
an annual income of some £15 million to fund the education
of some 800 pupils. The cost of educating one child is over £17,000
per annum.
— The average parental contribution
per annum is £2,519.
— The average parental income is £18,403.
CHRIST'S
HOSPITAL JUDGED
OVER TIME
"Christ's Hospital is a thing without parallel
in the country and sui generis"—report of the
Schools Enquiry Commissioners 1867-68.
"Lingering I quit you (Christ's Hospital)
with as great a pang, As when ere while, my weeping childhood,
torn by early sorrow from my native seat, Mingled its tears with
hers—my widow'd Parent lorn"—S T Coleridge.
"Coming from a challenging background,
Christ's Hospital taught me a sense of pride and order. Even now,
its like being part of a second family"—Davis Mukasa,
former pupil 1988-1995.
"CH would pass any test of public benefit
with flying colours"—The Independent 2003.
OUR PARENTAL
BODY IS
UNIQUE
— We identify potential parents from
the disadvantaged sections of the community (see pie chart).
— We recruit across Great Britain.
Efforts are especially concentrated both on our founding home,
the City of London, and deprived areas of Sussex, our home for
the past 100 years.
— Now based in Sussex we target deprived
areas using statistics issued by the Office of the Deputy Prime
Minister, which measures deprivation via a series of indices (Regeneration
Research Summary).
— We work in partnership with local
authorities eg the Shoreditch Learning Trust serving Hackney,
State primary schools and like-minded support agencies such as
School—Home Support.
— 220 (28%) have homes in London;
— The majority of these live in one
of the 11 Inner City boroughs eg Hackney and Southwark;
— 240 from the most deprived areas
in Sussex:
— "West Sussex is not
without its social, economic and health problems" (South
East of England Development Agency Report).
— Adur has the lowest number
of university acceptances in the UK (Adur District Council).
— Christ's Hospital draws
pupils from 13 of the most deprived wards in Sussex which feature
amongst the one third worst in the UK.
— 340 reside across the UK:
— CH recruits from areas
such as Bristol, Telford, Ipswich, King's Lynn and the Isle of
Wight which are also included in the worst one third of deprived
wards in the UK.
PARENTAL FINANCES
— All parents are means tested annually.
— 98% of parents are supported financially.
— 20% earn less than £7,500 and
therefore pay nothing for their child's seven years at Christ's
Hospital.
— We maintain a limit on the number
of parents who can afford full fees: currently this is just the
parents of 16 pupils.
PUBLIC BENEFITS
AT CHRIST'S
HOSPITAL
— Open access to any parent regardless
of ethnicity, status or income.
— Diversity of opportunity is provided
to parents on the lowest of incomes. We provide education suited
to the child, the parent and disadvantaged home circumstances
such as home overcrowding, permanent parental ill health, child
or parental dysfunction.
— Enhances the independence of single
parents by permitting them to work (50% of our children have only
one parent).
— Provides a unique impact and capacity
for the poorest and most disadvantaged not replicated elsewhere
in either private or State education.
— The breadth and quality of education
equates to the highest standards of the independent sector. Music,
drama, sport and a host of activities to foster hobbies and interests.
— An extensive programme with the community
has flourished for decades based on use of our facilities and
CH pupils working in the community at home and abroad.
COMMENTS ON
THE INTENDED
PUBLIC BENEFIT
TEST
We suggest that:
— There should be evidence that the
public benefit is one which enhances social diversity and opportunity
regardless of personal and financial circumstances.
— The proportion of such beneficiaries
should be approximately 50% of the total number benefiting from
the service.
— In line with the Government's wish
to find a greater role for the voluntary sector to provide public
services, those charities which pass the Public Benefit Test should
be eligible for State funding.
— When Government Assisted Places and
Advanced Corporation Tax were withdrawn, genuine charities, including
schools, were adversely affected to a material financial degree.
— An objective definition of "public
benefit" should be forthcoming whether enshrined in legislation
or, and perhaps more appropriate, directed to the Charity Commission
to apply in the diverse charity sector.
June 2004
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