• One in three say they have applied for state schools and 28% would consider moving house to be near to a well-regarded state school
• Around 6% admit to using friends or relatives addresses to boost their chances of a successful state school application
• Premium Credit’s School Fee Plan provides funding to help parents spread the cost of fees

Private school parents are increasingly turning to state schools following the Government decision to impose VAT on independent school fees from January 1st next year, new research* from Premium Credit’s School Fee Plan, a leading provider of finance for school fees, shows.

Around a third (31%) say they have applied to local state schools for one or more children following the decision to introduce VAT on school fees with 23% saying their applications have been successful.

Premium Credit’s School Fee Plan’s research found private school parents are looking to longer term solutions including moving house to be in the catchment area of well-regarded state schools – 28% say they would consider moving house while another 6% say they have already done so. Around 11% say they are considering moving jobs for higher pay while 17% are looking to take on more work or second jobs.

Around one in eight (12%) say they will look to get their children into less expensive private schools while 11% have asked grandparents and other relatives to start helping. Around one in seven (14%) have asked grandparents and other relatives to increase the amount they already give.

The research found around one in six (17%) of parents with children at private school currently pay monthly for their children’s fees and more than half (53%) who do not pay monthly would like to do so if they could.

The total lent through Premium Credit’s School Fee Plan (SFP), which allows you to spread the cost of a child’s school fees, 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% higher than the same period last year. The average amount of funding through SFP is now around £20,300.

Stewart Ward, Director Education Sector & Head of School Fee Plan, Premium Credit said: “The introduction of VAT on private school fees from January 1st 2025 inevitably means parents reassessing financial priorities.

“It has also fuelled demand for the ability to pay school fees monthly as people increasingly recognise that it is more convenient and in line with how consumers pay for a wide range of goods and services.”

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. It has a net promoter score of +70 which is regarded as excellent.

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:
(*) Independent research conducted by Viewsbank online among 643 parents with children who currently attend or private schools in the UK between August 19th and 21st 2024