- Nearly one in three independent school parents have contacted schools about how to afford fees
Nearly half (44%) of independent school parents expect paying fees will become tougher in the year ahead as VAT and the ongoing cost of living pressures hit home, new research* from School Fee Plan, a leading provider of finance for school fees, shows.
The research found that parents estimate they spend around 12% of their household income on school fees although nearly one in five (17%) say they spend 20% or more. Increasing pressure on managing school fees sees a fifth of those finding it hard to pay fees say they are planning to remove their children from independent schools.
Others are looking for help from schools - nearly one in three parents (29%) have contacted their school about how to manage fees in the wake of the introduction of VAT. They are also looking for better ways to spread the cost of school fees with two-fifths (41%) of those who do not pay monthly saying they would like to be able to do so if the option was available.
The impact on parents
The research from Premium Credit’s School Fee Plan found more than one in five (21%) rely on relatives to help pay fees with three-quarters (76%) of them turning to their parents. Affording school fees was already an issue for parents before the imposition of VAT with 41% saying they found it difficult.
Around half (50%) of parents and former independent school parents say the cost has forced them to delay retirement. That includes 15% who say their retirement has been delayed by five years or more and 13% who say they will never be able to afford to retire.
The research found 28% of parents and former parents say they took fewer and cheaper holidays in order to pay school fees, while 27% say they work overtime to make extra money and 11% say they have gone into debt.
The total amount lent through Premium Credit’s School Fee Plan (SFP) last year is around 15% higher than in 2022 and 5% more than 2023. The average amount of funding through SFP is now around £21,735 which is 11% higher than 2023 and 19% higher than in 2022.
Currently around two-fifths (42%) of parents pay fees every term, Premium Credit’s research shows, with 18% paying monthly and 8% paying annually. A further 9% pay a lump sum upfront while 22% would not discuss how they pay. Almost all (95%) who do pay monthly say it is a convenient way to pay fees.
Stewart Ward, Director Education Sector & Head of School Fee Plan, Premium Credit said: “The introduction of VAT on independent school fees is a major challenge for some parents and clearly many find it difficult to manage fees.
“It is understandable that many parents are contacting schools to discuss how to spread the cost of fees. Cost of living pressures also are a big factor highlighting the need for solutions that enable parents to make monthly payments rather than a lump sum each term. It’s much more convenient and helps manage cashflow as well as being an obvious way to pay large sums in much the same way we do with our mortgage and insurance premiums for example.”
(*) Independent research conducted by Viewsbank online among 512 parents including 155 whose children currently attend or have attended independent schools in the UK between March 28th and March 31st 2025
(**) For 30 years, SFP has helped parents finance their children’s independent school fees by enabling them to spread the cost rather than paying a lump sum each term. SFP is the convenient and manageable way for parents to pay for independent school fees and extras such as music tuition and trips. It splits the cost into regular monthly direct debits, like any other household bill.
The process of applying for a SFP for both parents and schools is seamless. Parents apply to open their account online before the beginning of any term. If the application is approved, SFP will notify the parents and the school. SFP sends the full payment to the school at the start of each term.
