I'd tell the school, on the quiet, and let them decide what to do. I think that's all you can do really. Knowing how much effort goes into funding those subsidised places it's just not on that they go to kids whose parents bend the rules. There is also a non-British, non-EU family at our school who I am pretty sure have not just bent, but broken the rules: off-shore money and business, frequent flights, expensive jewellery and holidays and their kid is on a bursary but they can't have declared their actual wealth on the bursary application. Makes me crazy actually as there are kids who genuinely need these places, plus this family are never around at all those tedious money raising events to fund the bursaries. I think I've just convinced myself that I will tip off the school.