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School Fees on a rising tide 
During the past decade, 40,000 extra children have entered the private school sector, according to the Independent Schools Council (ISC), despite government spending on state education having increased by two thirds in real terms over the same period.
Almost one in four sixth-form pupils are privately educated and half a million children attend ISC member schools (about 67,000 of whom are boarders). One reason for the popularity of the private sector is that the teaching ratio is less that 1 to 10 pupils, compared to 1 to 17 in the state sector. But for many parents, it has just as much to do with the lack of choice in some popular areas and an understandable desire to avoid so-called “sink schools” which can be so damaging to sensitive children. However, choice comes at a price; and as private schools face ever rising wage and other costs, fees have been rising steadily for many years. While average fees for day pupils have reached £8,790 across the country, the top 50 schools now charge up to £20,000 a year – in some cases, as much as £25,000 a year. According to the Sunday Times (8th July), day school fees will rise by 6% next year – well ahead of the headline inflation level. This means that increasing numbers of families will face what has been called “middle class poverty”. The cost of educating a child privately is now estimated to be well in excess of £250,000 in many cases and with two, three or even four children going through the process this can become an intolerable burden. Yet with careful planning, in advance – or even when children are already at school – it is possible to cut the actual cost significantly, in some cases even by as much as 50%. Preparing well in advance of the onset of school fees is, of course, important. But it is never too late to take advice and in the case of sudden need, good financial planning can sometimes be an alternative to having to remove a child from school. However, “families should also consider the potential impact on school fees planning of the death or long term illness of a principal earner,” commented Chris Procter, Managing Director of school fees planning specialists SFIA, “if children are to be able to remain in situ, whatever happens.” If you require any further information about the services that we provide or would like to review your financial planning position, please contact us |