Private schools could lose discounted Ofsted inspections under plans to end 'unfair' state subsidy

The Education Secretary is expected to announce plans to abolish the subsidy which currently means two thirds of Ofsted inspection costs are effectively discounted for private institutions.

The state watchdog inspects around half of England’s 2,496 registered independent schools.

But there is a disparity between the fees charged for checks and full cost recovery.

The cost of providing Ofsted inspections to private schools in 2024/25 was £6.5 million, according to figures set out by then-education minister Stephen Morgan earlier this month.

But only £2.2 million of that – or 34% – was recovered in fees charged by Ofsted.

Allies of Ms Phillipson told The Telegraph: “We want to maximise the money going into our state sector, diverting it towards priorities driving up standards across the country.

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“Inspection is crucially important for driving up standards in all schools as well as keeping children safe.

“That’s why we’re strengthening it for private schools as well as state schools – but it’s time every independent school paid its fair share.

“These private schools are private businesses. It’s frankly unfair. Taxpayers, most of whom send their children to state schools, shouldn’t have to foot the bill to make sure they’re accountable to fee-paying parents.”

Plans to remove the subsidy are expected to be set out in a consultation launched this week.

The Labour Government in January removed the VAT exemption and business rates relief for private schools to enable funding for 6,500 new teachers in state schools.