King's benefits from that feel-good factor

The independent school - founded in 1541 as a cathedral school - is a mixed day school charging around £2,526 a term.

But despite the public's perception of it being only for the privileged, the school is deserving of its charitable status.

Headmaster Tim Keyes is quick to point out the school's qualities and how the community benefits from its existence.

The pupils are involved in a number of projects themselves, including the service elements of the Duke of Edinburgh Award Scheme and the Himalaya Club - community work plays as big a part as the trekking.

"On Saturday mornings we have groups of boys and girls who go out and work with elderly people," said Mr Keyes.

"In the second half of this term some pupils will go out at lunchtimes to read at primary schools. There's a very strong ethos here towards service.

"You ask for volunteers, whether to help in the junior school or for supportive roles for newcomers, and someone will always readily volunteer."

The Government has unveiled plans to test whether independent schools, such as the city's King's School, Worcester, offer "public benefits" to justify their registration as charities.

It follows longstanding complaints that private schools receive huge tax concessions, which help provide superb facilities not enjoyed by state school pupils.

"Scrapping charitable status would have a huge effect on fees," said Mr Keyes.

"If we were paying VAT we would have to charge the level of fees that most parents wouldn't be able to afford.

"This Government has been much more keen to work with the independent sector than was feared it might.

"Estelle Morris in particular has commented on the specialism and the expertise we can offer.

"With this new definition of public benefit all schools have got to consider what it is that they are offering to the local community.

"It's also how much schools are offering the chance of education to those who wouldn't be able to afford to.

"There's a limit to what we can do because we're a non-profit organisation."

The school, in College Green, Worcester, currently offers more than 50 bursaries to students.

More than 100 children receive scholarships, many of these are bright children of parents who would not otherwise be able to consider independent education.

To be able to offer more, the school has launched an appeal for new bursaries from former pupils.

"Many of these would have benefited from the assisted places scheme, or bursaries and scholarships themselves," said Mr Keyes.

"A few weeks ago we were offered £70,000 as a contribution. We hope that it's an example others will follow.

"King's turned out to be the right school for him. He's now doing well enough that he can give something back."

As well as bursaries and service, the school also offers its accommodation to the community.

"The sports hall, swimming pool, fitness centre, assembly hall, theatre, playing fields and even some of our classrooms, are in regular use by organisations in Worcester," said Mr Keyes.

"We charge only so we can cover costs, we don't raise money from it. It's a goodwill gesture.

"For the Three Choirs' Festival we offered a substantial amount of the school for all sorts of events.

"There was a good feeling that the city and the school were working together for a major event.

"We also offer six Saturday mornings a year for children from local primary schools to work and make good use of the facilities."

Under a law dating back to 1891, a school can be registered as a charity simply because it offers "the advancement of education".

Prime Minister Tony Blair, who issued the report, said changes were necessary to maintain "high levels of public trust and confidence" in charities.

"This report sets out a package of measures which will modernise the law and enable a wide range of organisations to be more effective and innovative," he said.

The review, which has taken 12 months, is designed to sweep away anomalies in the charity laws dating back more than 400 years.