• More than half would sign up to payment plans, and they spend on average 15% of their income on fees
• Premium Credit’s Schools Fee Plan provides funding to help parents spread the cost of fees

Nearly half of private school parents believe affording fees will become tougher in the year ahead and they are increasingly looking for ways to make the cost more manageable, new research* from Premium Credit’s School Fee Plan, a leading provider of finance for school fees, shows. 

Nearly a fifth (17%) believe affording fees will become much harder while 27% believe paying fees will become slightly harder. Just one in five (20%) expect paying fees will become easier in the year ahead, the study found. The rising cost of school fees is a slightly bigger factor than the cost of living with 63% blaming increases at schools compared with 58% blaming the cost of living and rising interest rates. 

Premium Credit’s research shows that on average parents are spending 15% of their income on school fees but nearly a quarter (23%) say a fifth or more of their income goes on these. More than half (51%) who have struggled to pay fees have discussed their issues with the school. 

The study found that increasingly parents are looking for other ways to afford fees – more than half (52%) of parents say they would consider a scheme which enables them to spread the cost in return for a small charge. Around 57% who do not pay fees monthly currently say they would consider switching. 

Around half (53%) questioned pay fees every term while 7% pay annually and 26% pay monthly with 9% paying a lump sum upfront and 5% preferring to not answer.

Among those struggling to pay currently, nearly two out of five (38%) say they are planning to take children out of private school with another 41% thinking about withdrawing them. 

The possible application of VAT to school fees would make private school unaffordable for one in three (33%) of parents questioned while 36% say they would look for a cheaper alternative and 20% say asking family for financial help would be an option. 

The total lent through Premium Credit’s School Fee Plan (SFP) was around a quarter more last year 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% more 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: “Parents with children at private schools are increasingly looking for solutions which will make the cost more affordable. It is clear that many are struggling currently and expect the financial strain to increase. 

“Spreading the cost of their children’s school fees for a small fee through funding plans can make financial sense and ease the strain for parents while enabling schools to help parents.” 

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/

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 2nd 2024
(**) ISC Census 2023