The question of free education at the School was settled finally. Every boy admitted into the School had to pay an entrance fee not exceeding £3 and a tuition fee not less than £12 or more than £24. Fees for boarding in the Hostel were not to exceed £45. Certain exemptions from tuition fees could be granted as the reward of merit, and in a few instances the boarding fees might be remitted for similar reasons and to a limited extent. If the state of the Trust Funds permitted, a leaving Exhibition, to be called The Giggleswick Exhibition, might be awarded for the purpose of fitting the holder for some profession or calling. It was to be given on the results of an examination in Mathematics, Natural Science or Modern Languages.
The most important clause in the scheme was that which inaugurated the Shute Exhibitions. Giggleswick had been founded as a Free School, and the fundamental alteration of its character had been vigorously opposed by the inhabitants of the neighbourhood for close upon ten years. They were fighting a losing battle. It was clear that no school could maintain the efficiency of its education without the imposition of fees. One of its two original characteristics must go. Either the education must cease to be free, or it must lose its former liberal element. For three hundred years and more a Grammar School education had been such that by its very breadth it endeavoured to fit men for whatsoever walk in life they intended to adopt. But in the nineteenth century education was becoming more expensive, and the old ideals could not be maintained at the old cost. It is always an odious task to change the character of a benefaction, and to deprive people of long-standing privileges, but on the other hand it is essential to look at the matter from a different standpoint. Did the imposition of fees rob many boys of the chance of an education by which they were likely to profit? The answer is almost certainly in the negative. That there were some few to whom a higher education would be a gain is equally certain, and for these provision was made. The bequests of Josias Shute had been made in order to enable poor scholars to go up to the University, and for two hundred years the money was used in this way. But in 1872 it was diverted. It was henceforth to be applied to the payment of the tuition fees of such boys as had for not less than three years been educated at one or other of the Public Elementary Schools in the Ancient Parish of Giggleswick, and who should be deserving of it. These boys were to be called Shute Exhibitioners. The change has limited the numbers of boys from the neighbourhood who have been educated at the School, but the results have been excellent. Many Shute Exhibitioners have been enabled by this help to fit themselves for various positions in life, in which they have afterwards distinguished themselves, and it is improbable that any have been kept back by their failure to gain an Exhibition. The Governors further determined to change the character of the Lower School and make the education received there similar to that of a Preparatory School. In order to carry out the second aspiration of the Endowed Schools Commissioners, namely to "promote the education of girls," the Governors were ordered to pay £100 yearly to some girls' schools, which should be chosen later. This sum was paid to the Endowed School for Girls at Skipton.