We announced that last year we saw a 13% increase in the amount of money we lent through our School Fee Plan (SFP) product to parents looking to spread the cost of their children’s school fees, when compared to 2021. The amount of funding provided through SFP in Q1 2023 is 77% higher than the same period last year.
The number of clients who used SFP in 2022 was 84% higher than in 2021, and the average amount of funding provided was £7,695.
For over 25 years, SFP has helped parents finance their children’s independent school fees by allowing 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.
The average cost per child at a UK private school is now around £20,480 per annum for daypupils, and £34,790 per annum for boarders, and fees are on average rising byaround 4% a year*. However, costs vary dramatically across the UK with London having the highest fees - £23,249 a year for day school, and £37,729 per annum for boarding and tuition, and Northern Ireland has the lowest where the corresponding figures are £7,485 and £20,329, respectively.
Jennie Hill, Chief Commercial Officer, Premium Credit (Specialist Lending) said: “With the general rise in the cost of living and private education, the pressure to make school fees more manageable has increased. This is reflected in the huge growth we have seen in the number of parents taking out plans with us to spread the cost of their children’s education. For many, it makes sense to spread this cost, even if they can afford to make the payments every term."
