• Nearly half of parents with children aged under-5 and 17% of parents with children at state schools consider going private
• Premium Credit’s School Fee Plan provides funding to help parents spread the cost of fees

Private schools remain popular with parents in the face of rising costs but Labour’s plans to apply VAT to fees would make it unaffordable for many, new research* from Premium Credit, a leading provider of finance for school fees, shows.

Its study found 46% of parents with children aged under five hope to send them to private school and 17% of parents with children currently at state schools are thinking of sending them to private school instead.

However, proposals being considered by the Government to apply VAT to fees would make private school unaffordable for 28%, the research found.

Just 40% of parents with under-fives hoping to send their children to private schools questioned would do so when they start school, the study found, with almost all (94%) would wait till children are older saying the potential additional cost puts them off.

Around 59% of parents with children at state schools considering sending them to private schools say the main reason for doing so is that they believe the quality of education would be better, while 29% say it is because they believe their children are falling behind academically.

Around 30% say one of the reasons for choosing a private school is because their children have special educational needs which they believe would be better met at a private school. Around one in seven (14%) say their children are unhappy at their current state school.

The possible application of VAT to school fees would not deter all the parents of under-fives and state school parents considering private schools for their children. Around 37% questioned say they would look for a cheaper private school while 27% would ask family for help with fees and 27% would look for a better paid job.

The total amount lent through Premium Credit’s School Fee Plan (SFP) last year is around a quarter more than in 2021. Total lending increased by 10% last year compared to 2022 and the amount of funding provided through SFP in the first three months of this year is 9% higher than the same period last year. The average amount of funding through SFP is now around £20,300.

Private school fees are rising at between 3% and 4% a year with average* day school fees around £16,374 a year and boarding schools around £39,000 a year. Day fees at boarding schools are around £21,500 a year.

Stewart Ward, Director Education Sector & Head of School Fee Plan, Premium Credit said: “Demand for private schools remains strong despite the potential cost and the possibility of VAT being applied to fees.

“Any parent considering private school for their child needs to plan ahead to cover the cost which for one child can be more than £200,000 if they spend their entire school career in the private sector. Planning ahead should include looking at the possibility of paying a small annual charge in order to spread the cost as well as inquiring whether schools offer payment plans, when considering where to send their child.”

For over 25 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.

For further information on SFP, please visit https://www.myschoolfeeplan.com/application/schoolfeeplan

Notes to editors:
(*) Independent research conducted by Viewsbank online among 986 parents including 301 whose children currently attend or have attended private schools in the UK between March 25th and April 2d 2024
(**) ISC Census and Annual Report 2023